Workplace Trends and Insights

The Workplace Trends topic page encompasses a diverse range of articles that provide insights into current job market trends, workplace dynamics, and the evolving nature of employment. Key themes include job growth statistics, the impact of remote work, the role of technology such as AI in job searches, and wage disparities. The content also touches on the challenges and benefits of different work environments, from traditional offices to remote setups, and explores issues like age and gender discrimination, employee well-being, and the influence of economic conditions on hiring practices. The articles aim to inform readers about the complexities of the contemporary workforce, offering data, expert opinions, and practical advice.

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How do you get a $ 172,000-a-year job at UPS?

College students go deep into debt to get a degree that qualifies them for a high-paying job. But thanks to a recently-negotiated contract with the Teamsters union, some delivery drivers for United Parcel Service (UPS) will earn up to $172,000 without spending a day in a classroom.

“I have never seen a national contract that levels the playing field for workers so dramatically as this one,” said Teamsters General Secretary-Treasurer Fred Zuckerman. “The agreement puts more money in our members’ pockets and establishes a full range of new protections for them on the job.” 

Thinking about applying for one of those jobs? You aren’t alone. Bloomberg News recently reported that searches on job site Indeed for jobs at UPS rose 50% after the historic contract was signed.

Danelle McCusker Rees is president of human resources and operational training at UPS. In an interview with CNBC, she said she began her UPS career in 2002 as a part-time driver helper. 

“Every UPS job – even one that is part-time – is an opportunity for a career,” she told the network. “I’m an example of that.”

Between 2018 and 2022, McCuster Rees said 38,000 part-time UPS employees were promoted to full-time positions.

What UPS is looking for

So, how do you get a job there? McCuster Rees said the company seeks people who have a  “customer-focused mindset."

“Agility is important as well ... as a company, we have the ability to quickly adjust to changing market conditions, and our employees have to be flexible too,” she said.

Being a good driver and always showing up when you’re supposed to are also traits the company likes. And now it’s paying a premium price for those individuals.

In addition to delivery drivers earning up to $172,000 in salary and benefits, a couple of other driver jobs pay well, too. 

Tractor-trailer drivers earn $162,000 on average while long-haul drivers earn an average of $172,000 in salary and benefits. Neither job requires a college degree.

College students go deep into debt to get a degree that qualifies them for a high-paying job. But thanks to a recently-negotiated contract with the Teamste...

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Job scammers are getting clever. Check out what their new game is

If you’re looking for a job, be careful where you look. Scammers have picked up on a new trick where they take outdated ads from real honest-to-goodness employers, change the text around, then post them on employment websites and career-oriented platforms like LinkedIn or Indeed. 

The modified ads seem to be real job offers with legitimate companies. But the scammer’s goal is to trick job seekers into sharing personal information like Social Security numbers, credit card information, etc.

So how do you know if you’re dealing with a scammer?

The first gotcha is that many of the hijacked job postings are angled toward people who want to work remotely and at their own speed, so the offers that are being fed are ones to work from home as a customer service representative or a personal assistant. 

Step two is to ask you for information so they can – ahem – deposit your salary. Social Security number? Bank account number? Don’t do it.

They’re so brazen that sometimes, they say you got the job and send you a check to buy equipment that you have to cash (and send money to them). Every single one of those moves has “scam” written all over it.

In its Top 10 Work-from-Home scams, Aura adds that when you contact one of the supposed employers, they ask to conduct a quick job interview over WhatsApp or another messaging service. Or, that you’ll quickly be "hired" and asked to perform illegal work. But, when you catch on to the scam, the fake “company” will cut off all contact.

Other things to watch out for

On top of those alarms, the Federal Trade Commission says there are three other ways to spot and avoid phony job postings:

Verify job openings before you apply. Go to the official website of the organization or company you’re applying to and look at the company’s “career opportunities” or “jobs” section. If the job you’re being pitched isn’t there, take a hard pass.

Check out what others are saying. Search the name of the company along with words like “scam,” “review,” or “complaint.” If there’s something fishy, the results might include the experiences of others who’ve lost money.

Never deposit a check from someone you don’t know. Let’s be real – a trustworthy employer will never send you a check and then tell you to send them part of the money. 

If you’re looking for a job, be careful where you look. Scammers have picked up on a new trick where they take outdated ads from real honest-to-goodness em...

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Looking for a job? Here are the industries that did the most hiring last month.

Widespread layoffs in recent months have sent millions of Americans to the unemployment office but fortunately, there were a lot of companies across several industries that did a lot of hiring last month.

The Bureau of Labor Statistics reports the economy created 253,000 jobs in April, pushing the unemployment rate down to 3.4%. Hiring was widespread across a number of different industries.

For example, companies in the professional and business services sector hired 43,000 new employees last month. Professional, scientific, and technical services added 45,000 positions.

Employment in health care increased by 40,000 in April, a healthy increase but slightly lower than the monthly average over the previous six months. Doctors' offices, hospitals, and residential nursing centers all added employees.

Bars and restaurants continued to hire workers. Employment in leisure and hospitality continued to trend up in April, adding 25,000 jobs. However, the industry still has fewer employees than it did before the pandemic.

Social assistance agencies hired 25,000 employees while agencies providing individual and family services added 21,000 to their staffs.

Even financial services firms were hiring

In spite of turmoil within the banking industry, employment in financial activities increased by 23,000 in April, with gains in insurance carriers and related activities. In spite of a slowing housing market, real estate added 9,000 jobs last month.

At the same time, employees took home bigger paychecks. In April, average hourly earnings for all employees on private nonfarm payrolls rose to $33.36.

If all of this sounds like good news, it is – for people looking for jobs and those who already have one. It’s not so good for the Federal Reserve, which has been hiking interest rates in an effort to reduce inflation.

In fact, the Fed is trying to increase the rate of unemployment – even if it means pushing the economy into a recession – to reduce consumer spending and bring down prices.

Widespread layoffs in recent months have sent millions of Americans to the unemployment office but fortunately, there were a lot of companies across severa...

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Interested in making extra money? Check out these remote side jobs hiring now

Working remotely has become a mainstay since the COVID-19 pandemic, and there are countless ways for consumers to earn money – or extra money – from home. 

For those who may be looking to bolster their bank accounts, earn some extra income, or improve their financial standing, a remote side job could be just the thing. 

Picking a remote side job

FlexJobs, a site dedicated to highlighting remote work opportunities, put together a list of over two dozen remote side jobs that are currently hiring. Below are just some, including the average hourly wage for each, though actual pay will depend on where employees live. 

  • Project Manager ($37/hour): This option came with the highest average hourly wage, and interested candidates can choose from positions like Senior Software Engineer, Senior Product Manager, Database Administrator, Program Coordinator, and more. 

  • Curriculum Writer ($33/hour): The second highest-paying remote side job is a curriculum writer. Some companies are based in Hong Kong or Toronto, but employees can work anywhere in the world. Interested applicants for these jobs must have strong writing, organization, and communication skills, and in some instances, knowledge about specific state standards or rubrics may be necessary. 

  • Executive Assistant ($29/hour): Organization is essential for remote executive assistants. Those hired will be responsible for keeping schedules in check, planning travel, taking care of expense reports, and sometimes even posting on social media.

  • Writer ($29/hour): These positions can include everything from Bloggers, Reporters, Content Managers, Editors, Journalists, Copywriters, News Writers, or Columnists. There are also opportunities for technical writers and authors.  

  • Recruiter ($27/hour): These remote side jobs range from industry-specific recruiters, like Blood Donor Recruiters or American Sign Language Recruiters, to general Corporate Recruiters. Experience and skills will vary from position to position. 

  • Social Media Manager ($26/hour): Interested applicants for these positions should have a solid grasp of all things social media. This includes the different platforms – Twitter, Instagram, LinkedIn, Facebook, TikTok, and YouTube – as well as different post formats – videos, images, text, etc. 

  • Copy Editor ($25/hour): Do you have a solid grasp of grammar, punctuation, and spelling? Can you check documents for consistency? Do you excel at proofreading? Then these remote side jobs are likely to be a good fit. 

  • Graphic Designer ($24/hour): Whether you’re interested in part-time, full-time, contract, or freelance work, there are many opportunities for graphic designers. These positions could be Creative Directors, Illustrators, Conceptual Professionals, Commercial Artists, Layout Managers, Designers, or Art Directors. 

  • Search Engine Evaluator ($24/hour): Many of these positions are geared toward consumers who are bilingual – Russian, Arabic, Mandarin, and Spanish are just a few of the languages that require Search Engine Evaluators. 

  • Career Coach ($24/hour): Whether you’re interested in working with students, seniors, or those in the middle of their career lives, there are options when it comes to remote career coaching. There are also language-specific career coaches, including French and Portuguese, as well as scouting for sports like soccer, football, or volleyball. 

Don’t fall victim to job-related scams

While consumers looking for jobs online should consider a number of things, including their skill set, how much time they want to devote to the job, and what their schedule will look like, it’s also important to be aware of the scams that exist within the job search.

Some red flags consumers should keep in mind are salaries that are much higher than similar jobs, employers asking for personal information (Social Security number, bank account information) right off the bat, emails that come in from personal accounts, not company accounts, or a company making a hiring decision very quickly. 

People should be diligent in their job hunt, researching the companies, the open positions, and the salaries they’re being offered. 

Working remotely has become a mainstay since the COVID-19 pandemic, and there are countless ways for consumers to earn money – or extra money – from home....

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Many shift workers struggle to adjust to an overnight schedule, study finds

A new study conducted by researchers from the University of Warwick is dispelling one of the biggest beliefs about working overnight shifts. While many consumers think it may just take time to adjust to this new schedule, the researchers found that this isn’t the case for all overnight workers

“There’s still an assumption that if you do night work, you adjust at some stage,” said researcher Bärbel Finkenstädt. “But you don’t. We saw that most workers compensate in terms of quantity of sleep, but not in terms of quality during the work time.” 

Risks of shift work

The researchers conducted their study on two groups of hospital workers – one group worked the night shift for three or more nights per week, and the other group alternated between morning and afternoon shifts. All participants wore devices that tracked their sleep, circadian rhythms, and surface temperature. 

After analyzing the results from the wearable devices, the team identified significant differences between night shift workers and day shift workers. Night shift workers had poorer sleep quality, and nearly 50% of them experienced disruptions to their natural circadian rhythms. 

These findings held up regardless of how long the participants worked night shifts. Participants who had been on that assignment for years were experiencing poorer sleep, and the longer they did night work, the worse their outcomes were. 

“Nearly 20% of the night workers could not even adjust their circadian rhythms during their free time, with the severity of impairment tending to increase with the number of years in night work,” said researcher Francis Lévi. “The telemonitoring technology, and analysis methods we have set up make it now possible to objectively evaluate circadian and sleep health in night workers in real time, and design prevention measures for individual workers whenever necessary.” 

While working nights is unavoidable in many industries, the researchers say it’s important that efforts are taken to ensure that workers are prioritizing their health as best as they can. 

“I think there’s a misunderstanding that night shift work is just an inconvenience, whereas it can be linked to serious health risks,” said researcher Julia Brettschneider. “We can’t avoid shift work for many professions, like health care workers, so we should be thinking about what can be done in terms of real-world adjustments to improve working conditions and schedules of shift workers. A better understanding of the biological mechanisms helps to find answers to this question.” 

A new study conducted by researchers from the University of Warwick is dispelling one of the biggest beliefs about working overnight shifts. While many con...

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Comparing doctors to each other increases risk of burnout, study finds

A new study conducted by researchers from the University of California explored how comparing job performances of physicians can be harmful. According to their findings, health care providers are more likely to feel unsatisfied with their roles and experience burnout when they're compared to their peers.

“Behavioral interventions such as providing peer comparison information offer attractive, cost-effective ways to promote positive behavior change,” said researcher Dr. Justin Zhang. “This research highlights the importance of assessing less visible outcomes, such as job satisfaction and burnout, when policymakers and organizational leaders implement seemingly innocuous behavioral interventions.” 

Long-term effects of job comparison

The researchers conducted a five-month experiment with nearly 200 primary care physicians to understand how being compared to others can affect job satisfaction and burnout. One group of doctors received information about their job performance compared to their colleagues, which is a behavioral method traditionally used among health care providers to improve their caregiving. The second group of doctors didn’t receive any comparative data on their performance versus their peers. 

Ultimately, the comparison among the physicians wasn’t found to be helpful. Rather than promote better preventative care, the doctors who received information on how their performances compared to other doctors experienced greater dissatisfaction in their roles and a higher likelihood of burnout. 

The researchers explained that many of the health care providers felt that this practice of comparing them to their peers affected how they viewed their superiors. They didn’t feel supported by doctors in leadership roles, and that impacted how they felt about their own positions. 

Moving forward, the researchers hope that more work is done to guide health care providers in a way that is more supportive. 

“This work also underscores the importance of attending to the way in which an intervention may inadvertently change employees’ perceptions of their managers and thus elicit negative reactions,” said Dr. Zhang. “To preempt negative perceptions, such as reduced feelings of leadership support, this research suggests that organizational leaders ought to engage employees in the design phase of an intervention, probe their feelings, and revise the design if needed. 

“Finally, this work highlights that when leaders offer the necessary context and support to accompany a peer comparison intervention, recipients may draw more positive inferences about their leaders’ intent. This can buffer against the harmful effects of peer comparison interventions on well-being.” 

A new study conducted by researchers from the University of California explored how comparing job performances of physicians can be harmful. According to t...

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Mindfulness may improve interactions with coworkers, study finds

A new study conducted by researchers from Virginia Commonwealth University explored how consumers can improve their relationships with their coworkers. According to their findings, practicing mindfulness may improve interactions among coworkers, which in turn can lead to improvements in their work roles. 

“An understanding of how individuals bring mindfulness with them to work, and how these practices may contribute to interaction and relationship quality, is especially relevant as work landscapes are ever-changing and interdependence is increasingly becoming the norm,” said researcher Christopher S. Reina, Ph.D. 

Improving workplace relationships

For the study, the researchers conducted several formal and informal interviews. They spoke with consultants, managers, and professionals that practice mindfulness about their experiences in the workplace as well as other individuals who prioritize mindfulness at work. 

The researchers learned that mindfulness can have important benefits in the workplace. They found that efforts like being an attentive listener or taking a mindful moment before the start of a meeting can have a ripple effect on workplace performance and interpersonal relationships with colleagues. 

“Interestingly, interviewees noted how other individuals around them had noticed the emotional effects of their mindful behaviors on interactions and relationships,” said Reina. “We found initial evidence that our interviewees’ efforts towards bringing their mindfulness into the workplace were seen by their colleagues as having a positive effect.” 

These improved relationships resulted in improved individual functioning and better group outcomes. 

“Mindfulness reminds us that our thoughts and emotions are complex,” Reina said. “They are contextualized by prior events experienced within a social environment, and within this social environment, individuals must be aware of both their own and others’ thoughts and emotions in order to navigate these complexities with skill and compassion.” 

A new study conducted by researchers from Virginia Commonwealth University explored how consumers can improve their relationships with their coworkers. Acc...

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Loneliness may increase risk of unemployment, study finds

A new study conducted by researchers from the University of Exeter explored how loneliness may influence employment status.

Ultimately, the team identified a link between the two; those who experience loneliness may be more likely to be unemployed down the road, while those who are unemployed may be more likely to feel lonely

“Given the persisting and potentially scarring effects of both loneliness and unemployment on health and the economy, prevention of both experiences is key,” said researcher Nia Morrish. “Decreased loneliness could mitigate unemployment, and employment abate loneliness, which may in turn relate positively to other factors including health and quality of life. Thus, particular attention should be paid to loneliness with additional support from employers and government to improve health and well-being. 

“Our research was largely conducted pre-pandemic, however, we suspect this issue may be even more pressing, with more people working from home and potentially experiencing isolation because of anxieties around COVID.” 

The link between loneliness and unemployment

For the study, the researchers analyzed data from more than 15,000 people enrolled in the Understanding Society Household Longitudinal Study. The team looked at survey responses from 2017-2019, and 2018-2020, while also taking into account several important factors, including age, marital status, gender, education, ethnicity, and the number of children the participants had. 

The researchers learned that loneliness seemed to be directly linked with employment. Participants who reported feeling lonely at any point throughout the study were nearly 18% more likely to become unemployed down the road. The opposite was also true – participants who were unemployed at any stage of the study were more likely to report feeling lonely. 

“While previous research has shown that unemployment can cause loneliness, ours is the first study to identify that lonely people of any working age are at greater risk of becoming unemployed,” said Dr. Ruben Mujica-Mota. “Our findings show that these two issues can interact and create a self-fulfilling, negative cycle. There is a need for greater recognition of the wider societal impacts of loneliness in the working age population.” 

Moving forward, the researchers hope more work is done by employers and legislators to help employees who may be struggling with loneliness. 

“Loneliness is an incredibly important societal problem, which is often thought about in terms of the impact on mental health and well-being only,” said researcher Atonieta Medina-Lara. “Our findings indicate that there may also be wilder implications, which could have negative impacts for individuals and the economy. We need to explore this further, and it could lay foundations for employers or policymakers to tackle loneliness with a view to keeping more people in work.” 

A new study conducted by researchers from the University of Exeter explored how loneliness may influence employment status.Ultimately, the team identif...

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Virtual and in-person conferences are valuable collaborative tools, study finds

A new study conducted by researchers from Northwestern University explored the value behind scientific conferences that are often both expensive and time-consuming.

Whether the conferences were held virtually or in person, the study findings suggest that they have proven to be valuable ways for scientists to collaborate, share ideas, and meet new people. 

“Scientific conferences are a very expensive industry,” said researcher Emma Zajdela. “People often talk about whether or not we should rethink conferences. Our results suggest that the way organizers design conferences can have a direct effect on which scientific collaborations are formed and, by extension, on the direction of scientific inquiry.”

The power of collaboration

To get a better understanding of the value behind scientific conferences, the researchers created a mathematical model that predicted how well attendees made connections at these events. They then compared their results with data from Scialogs, which are scientific conferences designed to promote collaboration. 

The study showed that these efforts to get scientists talking to each other were valuable. When participants were assigned to specific groups, they were more likely to collaborate with their fellow conference attendees and also keep in touch with them after the conference. Additionally, those who joined small groups were eight times as likely to work with those same conference attendees in the future. 

“Today, science is conducted by teams, so the formation of new teams is especially important,” said Zajdela. “Science isn’t done by individuals anymore. It’s more interdisciplinary and multi-institutional. We need these conferences because scientists can meet other researchers who they might never have met otherwise.” 

It’s also important to note that these findings held up regardless of whether the events were virtual or in-person. In fact, virtual gatherings were more effective at helping scientists create long-term collaborations. While those who attended in-person events were 1.6 times more likely to interact with their new connections after the conference, those who attended a virtual conference were twice as likely to engage with their new networks. 

“We interpret these results as coming from the fact that scientists did not have the same opportunities for formal interactions (during breaks or meals) in the virtual conferences as they did in the in-person conferences,” Zajelda said. “Therefore, the sessions they were assigned to were the only place that they could meet people to form teams with; hence the greater importance of interaction in these sessions for team formation.” 

Regardless of the setting, the researchers hope these findings emphasize the importance of attending these kinds of sessions.

A new study conducted by researchers from Northwestern University explored the value behind scientific conferences that are often both expensive and time-c...

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Another 4.3 million Americans quit their jobs in January

It was nearly two years ago, at the start of the COVID-19 pandemic, that offices across America closed and employees began working from home. It set off a number of wide-ranging changes in the economy.

Rents plummeted as people moved out of apartments in the cities and purchased homes in the suburbs, sending home prices skyrocketing. Because people could work from anywhere, real estate markets in secondary cities like Boise and Des Moines boomed.

Now that COVID-19 is finally in retreat in the U.S. and many restrictions have been lifted, many businesses are trying to coax employees back to the office. But it’s not that easy. 

The “Great Resignation,” which began last year with millions of Americans quitting their jobs, has shown no sign of letting up. Nearly 4.3 million people quit their jobs in January, according to a Labor Department report issued earlier this week.

Bill Catlette, a  director at the National Foundation for Transplants, says we won't know how the current “Great Resignation” trend plays out until it collides with a recessionary economy. Right now, he says employees have a lot of leverage.

“Most companies have already made concessions in the form of pay, benefits, work schedule, and location flexibility,” Catlette told ConsumerAffairs. “The ones who don’t will pay a price, one of which involves being forced into the shallow end of the talent pool.”

Many employees want to continue working remotely

Employees cite a number of reasons for wanting to continue working from home. Near the top of the list is avoiding the daily commute. But there are many employees like Keren Gifford, an information technology worker in Pittsburgh, who hopes to continue working remotely for social reasons.

“There’s not much point in returning to the office if we’re just going back to the old boys’ club,” Gifford told the New York Times. “What a relief not to have to go in day after day, week after week, and fail at making friends and having fun.”

Piotr Majchrzak, co-founder and co-CEO of Boldare, says remote work was more successful than many business leaders dared hope. But he says there are downsides as well, which is why CEOs are encouraging a return to the office.

“Switching to a dispersed model can often put team working under stress: communication suffers, people aren’t sure what their colleagues are working on, and previous levels of information-sharing aren’t enough in a remote business environment,” Majchrzak told ConsumerAffairs. “The result is declining efficiency.”

No going back to 2019

Ira Wolfe, president of Success Performance Solutions, also weighed in on the issue. He notes that most of us long for a return to the normal of 2019, but so far it seems elusive and serves as a warning for CEOs. 

“Even as pandemic restrictions wane, an inflation crisis, fallout from the Ukraine crisis, economic volatility, and perpetual uncertainty will be the normal environment,” Wolfe said. “Leaders need to adapt their approach to work and how things get done to the environment which will be fluid. For those organizations with a vision to get ‘back to normal,’ it will likely turn out badly.”

Michael Alexis, CEO at teambuilding.com, believes a hybrid combination of office and remote work could become the new norm, at least in the short term. Smart companies, he says, will use it to attract and keep top-shelf talent.

“The volume of remote (work) is still very high, and I believe that top-performing employees who value this flexibility will move towards companies that provide a remote option,” he told us. “In order to stay competitive, other organizations will need to follow suit.”

It was nearly two years ago, at the start of the COVID-19 pandemic, that offices across America closed and employees began working from home. It set off a...

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Working during downtime may negatively affect motivation, study finds

With many consumers now working from home, it can be difficult to differentiate between working and non-working hours. However, a new study conducted by researchers from Cornell University found that this may be the key to long-term motivation

According to their findings, consumers who work outside of designated working hours – whether late at night or on weekends – may be less likely to stay motivated during working hours. 

“Even if you’re still working 40 hours a week, you’re working during time that you’ve mentally encoded as time off, or as time that should be for a vacation, and that can make you feel suddenly that your work is less enjoyable,” said researcher Kaitlin Woolley. 

Taking time off can help motivation

The researchers conducted three studies – one on college students and two on full-time employees. The researchers surveyed the participants on either a holiday or a weekend and asked the group to rate their level of interest in their work, how satisfied they were with their roles, and how engaged they were with what they were doing. In each of the trials, half of the group was reminded that it was either a holiday or a weekend, while the other half carried on with their work. 

Overall, it was clear to the researchers that working during what should be non-working hours greatly affected the participants' motivation and satisfaction. In each of the trials, when participants were notified that it was a holiday or weekend, their work wasn’t as enjoyable and they weren’t as satisfied in their roles. 

The college students reported that studying and doing homework was 15% less enjoyable when they knew it was President’s Day, while full-time office employees said their jobs were nearly 10% less enjoyable on Martin Luther King Day. Similarly, workers reported lower levels of job satisfaction when working on a Saturday versus a Tuesday. 

“The real benefit of time off on the weekend or on holiday is that it’s not just that I have time off, but my family and friends have time off, too,” said Woolley. “And so one thing we suggest for managers is, can you create a ‘weekend shift’ so people feel like they’re in it together with other people?” 

Moving forward, the researchers hope these findings help employees find a greater balance between work life and personal life. 

“It’s hard sometimes for workers who aren’t in a position of power, whereas I think managers have the responsibility to create that environment for their employees,” Woolley said. “I do think people are becoming more aware of the importance of that, and shaping their jobs and their life choices to allow for it.” 

With many consumers now working from home, it can be difficult to differentiate between working and non-working hours. However, a new study conducted by re...

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Support and friendship among co-workers may boost romantic relationships at home, study finds

A new study conducted by researchers from the University of Bath explored how support in the workplace may benefit consumers’ relationships at home. According to their findings, having friends in the workplace may help employees be supportive of their partners and encourage them to think more creatively to solve problems both at home and at work.  

“Employees take the support they receive from co-workers home with them, and in a loving relationship they transfer this support to their partner,” said researcher Yasin Rofcanin. “This might mean they encourage them to open up about stresses, seek to resolve issues, or make improvements to the juggle of work-life arrangements that benefit the family. 

“The result is that both members of a couple benefit,” Rofcanin said. “Spouses pass on support received from co-workers and partners will be more creative at work, in what is termed a ‘gain spiral.’ So it pays for employers to recognize the value of caring co-workers.” 

Wide-reaching benefits of workplace support

For the study, the researchers analyzed diary entries from over 200 full-time employees. All of the participants were in dual-income relationships, and 80% of them had children. Participants reported on their experiences at work, their relationships with their spouses, how workplace experiences affected relationships at home, and vice versa. 

The study showed that there was a positive correlation between support from co-workers and greater support in spousal relationships. The more supported the participants felt at work, the more likely they were willing to share those feelings with their spouses at home. Participants were more likely to get creative in their problem-solving with their partners, and they generally felt a greater sense of balance between work and family responsibilities. 

The researchers also found that this trend correlated with performance at work. When employers felt more supported at work, which translated into better relationships at home, they were also more likely to be more creative in their roles at work. 

The researchers explained that this relationship between workplace support and stronger spousal relationships was most effective when co-workers helped with problems related to home life. This included feeling supported through dealing with a sick child, general life challenges, issues with caregiving responsibilities that may affect work performance, or any other personal issues that may come up. 

Moving forward, the researchers hope these findings prove to be beneficial for employers. While co-workers aren’t guaranteed to be friends, creating a supportive work environment can benefit employers’ personal and professional lives. 

“So much research points to the stresses of being in a dual-income couple, it’s refreshing to see a win for loving relationships alongside work,” Rofcanin said. “While we’re not suggesting employers should meddle in relationships, they may be able to positively contribute to the quality of relationships at home by putting policies and procedures in place to minimize work-family conflict, such as limiting overtime and expectations to respond to emails outside of hours.” 

A new study conducted by researchers from the University of Bath explored how support in the workplace may benefit consumers’ relationships at home. Accord...

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Many businesses aren't compensating hourly employees after shift cuts, study finds

A new study conducted by researchers from the University of California Davis explored how many businesses are falling short on compensating their hourly employees.

According to their findings, several states have a law in place that is designed to compensate employees when they show up for work and their shifts are cut short; however, the study revealed that many employees aren’t receiving these funds and are unaware these laws are in place. 

“Shift cuts undermine the well-being of workers and their families,” said researcher Savannah Hunter. “The law may not be enforced consistently. We really need better support of labor in this country, generally.” 

Employees are missing pay

To better understand how well these laws are being implemented, the researchers surveyed over 1,000 hourly workers from across the country. Participants were asked if they knew about the laws regarding shift cut compensation, in addition to their general work experience, how often their shifts were cut short, and general awareness of local wages. 

Currently, the states with this mandate in effect are: New Jersey, Connecticut, New York, Massachusetts, New Hampshire, Oregon, California, Rhode Island, and Washington D.C.

Ultimately, just 4% of the participants were aware that there were laws in place in their states that required them to be paid when their shifts were shortened. However, nearly 40% of the participants reported experiencing shortened shifts. Of those who knew of the law, just 25% said they were compensated for shortened shifts most of the time. Additionally, just 17% of employers reported being aware of such laws. 

“Places like San Francisco, Chicago, Philadelphia, and Oregon recently implemented similar policies to improve the predictability and regularity of workers’ schedules,” said researcher Ryan Finnigan. “But we found that the enforcement process for these kinds of policies really needs to improve for them to be effective.” 

The researchers explained that when employees aren’t given these funds after shortened work shifts, it’s their responsibility to report it. While each state handles the specifics of the law differently, most are required to pay employees their full hourly wage for each hour of work they missed. 

Hourly workers are losing money when their shifts are cut short, while also missing out on the opportunity to be fairly compensated because they are unaware these laws exist and their employers aren’t carrying them out. Moving forward, the researchers hope that these findings bring awareness to this nationwide concern. 

A new study conducted by researchers from the University of California Davis explored how many businesses are falling short on compensating their hourly em...

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Personality traits may affect performance in different jobs, study finds

A new study conducted by researchers from the University of Arkansas explored an interesting connection between consumers’ personalities and their job performance. They learned that workers’ dominant personality traits may predict their success in certain occupations. 

“Although past studies made statements about the effects of personality traits on job performance in general, the specifics of these relationships really depend on the job,” said researcher Michael Wilmot. “More interesting findings exist when we take a deeper look at performance within the different jobs.” 

What traits best align with different industries? 

For the study, the researchers analyzed 15 earlier studies that explored the Big Five personality traits – conscientiousness, extraversion, openness, agreeableness, and neuroticism. They then looked at how those traits fared across nine industries – law enforcement, clerical, customer service, health care, military, professional, sales, and skilled. 

The researchers learned that workers’ success in certain roles could be predicted by their personality traits; however, the most important factor was the complexity associated with the occupations. The study also showed that certain characteristics are better suited to specific fields. For example, openness was associated with great success in professional occupations, whereas emotional stability was linked with better performance in law enforcement or the military. 

One trait was consistent across all of the fields: conscientiousness. Workers with high levels of conscientiousness are likely to perform well across the board, regardless of what field the job is in. 

Moving forward, the researchers hope these findings can be of use to both consumers on the job hunt and employers looking to fill roles. 

“These findings should prove useful for scholars pursuing a richer understanding of personality – performance relations and for organizations honing employee talent identification and selection systems,” Wilmot said. “They should also benefit individuals trying to choose the right vocation and, really, society-at-large, which would reap the collective benefits of better occupational performance.” 

A new study conducted by researchers from the University of Arkansas explored an interesting connection between consumers’ personalities and their job perf...

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Starbucks employees in Buffalo go on strike

Less than a month after voting to form a union, employees at a Starbucks store in Buffalo, N.Y., have gone on strike over grievances about working conditions. Six employees on the schedule to work instead formed a picket line in front of the store. Three other employees reported to work as scheduled, but Starbucks closed the location for the day.

The striking employees stated that the surge in coronavirus cases and illnesses among the staff had created “unsafe working conditions.” In recent days, Buffalo area Starbucks locations have been operating on a take-out-only basis.

“Pressure to go to work is being put on many of us when some of us already have other health issues,” Starbucks Workers United said in a statement. “The company has again shown that they continue to put profits above people." 

Company response

Starbucks spokesperson Reggie Borges told NPR that the company has taken significant steps to protect its employees and has offered compensation when employees test positive and must isolate.

"Over and above that, all leaders are empowered to make whatever changes make sense for their neighborhood, which includes shortening store hours or moving to 100% takeout only, which is the case in Buffalo," Borges said.

The Starbucks employees announced plans to form a union at the end of August. At the time, they said the move was not motivated by grievances. The employees, which Starbucks refers to as “partners,” said they wanted to be real partners with the company.

While Starbucks is a respected brand among ConsumerAffairs reviewers, earning 3.1 stars in a 5-star system, some reviewers side with the employees.

“Starbucks is taking advantage of their devoted customers and great employees,” Karen, of Sparks, Nev., wrote in a ConsumerAffairs review. “Prices roll out higher and higher every couple of months. Starbucks keeps taking customers’ money but will not pay their employees well.”

Starbucks has said it will raise wages for its U.S. baristas at least twice in 2022, bringing its minimum wage to $15 an hour by the summer. Meanwhile, the unionization effort that began in Buffalo could spread.

The Chicago Sun-Times reported this week that employees at a Starbucks location in the Loop have requested a union certification election to affiliate with the Service Employees International Union.

Less than a month after voting to form a union, employees at a Starbucks store in Buffalo, N.Y., have gone on strike over grievances about working conditio...

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Hosting conferences virtually provides environmental and personal benefits, study finds

As companies continue to try to balance virtual and in-person work, a new study conducted by researchers from the University of Texas at Austin uncovered interesting findings related to corporate conferences. 

Their work showed that when deciding between hosting an in-person or virtual conference, opting for a virtual event is better for the environment and more inclusive for long-distance attendees. 

“Conferences disseminate research, grow professional networks, and train employees,” the researchers wrote. “Unfortunately, they also contribute to climate change and present barriers to achieving a socially sustainable work environment. Virtual conferences demonstrated a clearly discernible and, in some cases, orders of magnitude improvement across nearly all metrics”  

Creating opportunities for diversity 

For the study, the researchers analyzed data from in-person conferences across several different industries that turned virtual over the last few years. They gathered information from these events and asked participants to answer questions about their personal experiences related to attending in-person and virtual events. 

It was clear to the researchers that virtual events won out over in-person conferences for several reasons. From a personal standpoint, virtual events required less travel time and less time away from work for attendees; this translated into spending less money to attend conferences. 

The study also showed that virtual conferences made it easier for more diverse attendees to participate in networking events. International workers weren’t constrained by travel requirements, cost, or time away from work, which made it possible to remotely engage with long-distance colleagues. 

“When we went virtual, it brought a lot more voices to the table that just weren’t able to be there for in-person events because of the cost, time, and other reasons,” said researcher Kasey Faust. 

Similarly, the researchers learned that virtual conferences had a significant impact on women – especially working mothers. Without the demands of traveling, it was easier for women to be more active with their colleagues while remaining local. Overall, the study showed that women’s attendance at work conferences went up by more than 250% due to the increasing number of virtual conferences. 

Staying virtual is better for the environment

Hosting virtual conferences also generated some environmental benefits. Workers were able to learn from each other and network with their colleagues without the environmental footprint of domestic or international travel. The study showed that the environmental impact of one attendee traveling to an in-person conference prior to the COVID-19 pandemic was the same as 7,000 people attending an online conference. 

Though there were several benefits linked to virtual events, the researchers found that one drawback was that some participants felt it was hard to stay connected and engaged on a virtual platform. They explained that while many industries are shifting back to in-person events, having the option to participate either remotely or in person will likely be the norm moving forward. 

“Tech companies are already doing this with their events,” said researcher Manish Kumar. “Smart people will hybridize their events at least to some extent.” 

As companies continue to try to balance virtual and in-person work, a new study conducted by researchers from the University of Texas at Austin uncovered i...

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Supportive voices at work may lead to better staff outcomes, study finds

A new study conducted by researchers from Iowa State University explored how using a supportive tone of voice can lead to better outcomes in the workplace. The team says coworkers respond better to these tones than harsher, more critical tones. 

“What we say within a group, the ideas we suggest, and the way we support others, signals something about who we are to our coworkers,” said researcher Melissa Chamberlin. “It can attract people to us or repel them.” 

Maintaining support in the workplace

To understand how employees’ tones of voice may change the way they’re perceived at work, the researchers conducted a four-month study involving first-year graduate students in an MBA program. The students were required to work in teams, and they shared what they thought of their fellow team members based on trust, their quality of work, their tone, and their overall respect. As the study came to a close, participants were able to choose their own teams; they explained their decision-making for the selections at the end of the experiment. 

The study revealed an interesting trend among the students: It was more desirable to work with those who had more supportive tones, but those with more challenging tones were perceived to produce better quality work. However, the students were more likely to choose to work with those who had more supportive voices than those who were more challenging. 

The researchers explained that speaking in a challenging voice usually projects confidence among workers while also highlighting improvements, new ways of doing things, and what needs to change. Conversely, supportive tones tend to highlight what’s working with the current system in place and emphasize the things that are going well. 

In practice, a supportive tone tends to be more attractive to workers. While someone using a challenging tone may have a better work-related reputation, they aren’t as likely to get others to want to work with them. 

“Because challenging voice is the predominant form of speaking up we encourage in classrooms and as managers, we thought it was going to be a strong driver of people selecting team members later. But as it turns out, this more supportive voice that helps establish relationships and a sense of trust amongst individuals in the group was more important,” said Chamberlin.

“There might be times that challenging voices reign supreme but other situations where supportive voices become more critical for a team. Supportive voicers can keep teams together to make sure the work gets done.” 

A new study conducted by researchers from Iowa State University explored how using a supportive tone of voice can lead to better outcomes in the workplace....

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Eliminating deadlines may help fight off procrastination, study finds

A new study conducted by researchers from the University of Otago explored one potential reason why many consumers may feel compelled to procrastinate on certain tasks. Their findings showed that getting rid of deadlines -- or keeping them short -- may help beat procrastination. 

“We interpret this as evidence that specifying a longer deadline, as opposed to a short deadline or no deadline at all, removes the urgency to act, which is often perceived by people when asked to help,” said researcher Stephen Knowles. “People therefore put off undertaking the task, and since they are inattentive or forget, postponing it results in lower response rates.” 

Making the most of deadlines

For the study, the researchers had participants complete an online survey in which they were given either one week, one month, or no deadline to respond. By completing the survey, a donation would be given to a charity on the participants’ behalf. The team was focused on understanding how the deadlines impacted how long it took the group to complete the survey. 

Ultimately, the researchers learned that the deadlines played an important role in getting the participants to respond. Not having any deadline was linked with getting the most responses. In contrast, having a month to answer the survey questions led to the fewest responses overall. 

The study showed that participants were more likely to complete the surveys faster when given no deadline or given one week. The more time that the participants had to do the survey, the more likely they were to procrastinate.

“While in our study we attempted to deal with participants’ potential beliefs that there might be an implicit deadline by running a field rather than a laboratory experiment, it is possible that not specifying a deadline in our No Deadline treatment might still have led participants to assume that there is an implicit deadline,” the researchers wrote

A new study conducted by researchers from the University of Otago explored one potential reason why many consumers may feel compelled to procrastinate on c...

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People who switch jobs earn more money, report finds

There was a lot of job-switching in recent months as the coronavirus pandemic prompted millions of people to move and make major life changes. It turns out many people who changed jobs earned more money.

A report from ADP shows that overall wage growth in the third quarter of this year rose 3.3%. But people who changed jobs during that period saw their wages grow twice as fast, at 6.6%.

Nela Richardson, chief economist at ADP, says wage growth has begun to match pre-pandemic levels for all employees. What stands out is the sharp increase in pay for people who quit jobs to take new ones.

 "As the economy continues to regain lost footing due to the pandemic, we are seeing pockets of unevenness in wage growth across the workforce as employers continue to offer competitive compensation, as well as in sectors such as leisure and hospitality which reported the greatest employment gains,” Richardson said. “Further, females switched jobs at a higher rate than men and outpaced their male counterparts in wage growth and job switching wage growth, though from a lower wage level."

Labor shortage gives employees more leverage

The labor shortage may be contributing to the trend. Employers are struggling to fill open jobs and are having to offer increased compensation to attract qualified workers. As employers increased their hiring, wage growth was positive across almost all sectors. The biggest wage gains were in trade, professional services, and construction.

Leisure and hospitality saw the biggest job gains, with 15% employment growth. The sector is slowly recovering from the major layoffs during the pandemic. 

The data suggests that employers are filling jobs with people they have attracted from other organizations, not from the ranks of the unemployed. Job switching increased from the previous quarter from 5.8% to 6.6%. 

Who’s getting hired

People aged 24 and under got hired the most, followed by people over age 55, possibly reflecting those rejoining the workforce in recent months. ADP said female wage growth jumped by 4.5%. That’s partly because they are coming from a lower wage, while the increase for men has been much more subdued, only at 2.4% in September 2021.

Before the pandemic, job switchers normally saw only a $5,000 to $10,000 a year bump in pay. During the pandemic, the rewards for people who leave one job for another have been larger, especially women.

Data from LinkedIn shows that job transitions for women have risen 54% when compared with 2020, which is a record. Men have also been on the move but at a slightly slower pace, increasing 46%.

There was a lot of job-switching in recent months as the coronavirus pandemic prompted millions of people to move and make major life changes. It turns out...

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Job applicants more anxious in virtual interviews during the COVID-19 pandemic, study finds

While much of the workforce has shifted online over the course of the COVID-19 pandemic, a new study conducted by researchers from the University of Toronto explored a tricky part of the online interview process. 

According to their findings, the stress and anxiety associated with the COVID-19 pandemic have made the virtual interview even more harrowing for some applicants. 

“Even before the pandemic, interview anxiety was a concern for many applicants,” said researcher Julie McCarthy. “With COVID, it’s a multiple whammy because the competition for jobs has increased and exacerbated the issues around anxiety in interviews.” 

Understanding pandemic anxiety

When the COVID-19 pandemic started, McCarthy and her team were researching how interview anxiety affects consumers. They decided to include questions about the pandemic into their questionnaires and evaluated the responses from over 8,000 people who applied for jobs between April 2020, and August 2020. 

The researchers learned that pandemic-related anxiety impacted how the candidates performed in their interviews. It also affected how they felt about the interview process and the companies where they were interviewing. 

Participants who expressed a lot of worry about the pandemic weren’t likely to do as well during their interviews as those who weren’t as anxious. The researchers found that job candidates who lived in places with the highest cases of COVID-19 were typically the most nervous about the virus. 

Practice makes perfect

While nerves are natural in high-pressure situations like job interviews, it’s important for consumers to feel confident and as relaxed as possible. The researchers’ biggest piece of advice: practice. 

“Get yourself used to the video camera,” said McCarthy. “Conduct a mock interview with someone in your network whom you trust. It’s also important to build your pre-interview confidence levels by thinking about what skills you have to offer and what it is that excites you about working for that company.” 

The researchers worry that additional stress may weed out candidates who are really good fits for their roles but ultimately lose out on the job because of their interview performance. To help consumers feel more comfortable, the team recommends that employers put themselves in the shoes of the people they’re interviewing and tweak the system. 

“To be strategic and maximize benefits for the organization, organizations really want to be thinking about how the platform looks from the applicant’s perspective,” McCarthy said. “If it’s elevating their anxiety levels unnecessarily, then it may be artificially reducing their performance when that candidate could be an amazing individual on the job. 

While much of the workforce has shifted online over the course of the COVID-19 pandemic, a new study conducted by researchers from the University of Toront...

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Consumers think better of businesses that pay more than the minimum wage, study finds

A new study conducted by researchers from the Institute for Operations and the Management Sciences explored the wide-ranging effects that come with raising the minimum wage

While a higher minimum wage is beneficial because it encourages stronger work performance from employees, the researchers found that it also changes how consumers view businesses. Overall, the researchers learned that customers had a more positive view of a business when its minimum wage is higher.

“Our primary question was to determine whether a minimum wage increase leads to an increase or decrease in consumer opinions of service quality,” said researcher Dinesh Puranam. “We found that generally, when workers are paid more, they deliver better service. Customers respond by reducing negative feedback on restaurant review platforms.” 

Benefits of higher minimum wage

For the study, the researchers analyzed nearly 100,000 online reviews that included opinions on over 1,700 restaurants in Santa Clara County in California. The study focused on this area because the minimum wage rose by 25% throughout the county in 2013. The researchers analyzed customers’ responses to restaurants, comparing how locally and nationally owned establishments stacked up against each other. 

Ultimately, the study showed that having a higher minimum wage changed how customers perceived restaurants. When the minimum wage was higher, consumers were less likely to leave bad reviews online. 

However, this wasn’t true for all businesses. Locally owned businesses experienced fewer negative reviews than nationally owned restaurants. Customers reported better service in these restaurants and better overall quality. 

“Locally-based independent restaurants have greater ability to monitor and manage individual employee performance when compared to national chains, where process-driven cultures allow little room for local variance in quality,” said researcher Vrinda Kadiyali. 

The researchers hope that independent restaurants use these findings to their advantage. Offering more than the minimum wage is likely to attract more employees and encourage them to work harder, which really pays off for customers. 

“Our research suggests that independents’ can improve their success by providing a better customer experience through improved service,” said researcher Vishal Narayan. 

A new study conducted by researchers from the Institute for Operations and the Management Sciences explored the wide-ranging effects that come with raising...

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Stress impacts consumers’ decisions to stay in their current jobs, survey finds

The COVID-19 pandemic has increased stress levels in just about every area of consumers’ lives. Now, a new study conducted by researchers from the American Psychological Association explored how stress levels are impacting how consumers feel about their jobs

According to their survey findings, many consumers are facing increasingly higher levels of stress and are considering leaving their current positions within the year. 

“Stress at work can have broad negative consequences for employers and employees alike, including loss of productivity, high turnover, and repercussions for employees’ physical and emotional health,” said researcher Arthur C. Evans Jr., Ph.D. “A workplace that pays attention to worker well-being is better positioned to recruit and retain engaged and productive staff.” 

Workplace stress is on the rise

For the study, the researchers analyzed data from over 1,500 adults enrolled in the Work and Well-being Survey. Participants answered questions about their work experience since the start of the COVID-19 pandemic, how stressed they’ve been feeling, their likelihood of staying in their current positions, and what their employers can do to improve mental health. 

Nearly 45% of the participants said they plan to find new jobs within the next year because of increased stress levels. Those figures were even higher for participants of color and participants with disabilities. 

Low salaries were the biggest source of stress for participants, followed by long hours and lack of opportunity for growth. That stress correlated to an inability to focus, a lack of motivation, and an unwillingness to put in an effort at work. This was especially true for frontline workers; 35% of these employees said they frequently felt fed up at work within the last month. 

What can employers do?

Nearly 90% of the participants believe their employers can do more to help their mental health in the workplace. Some ideas included encouraging employees to use their time off, prioritizing mental health check-ins, and providing flexible hours. 

If employees were only given one perk to improve their stress levels, getting higher compensation was the top choice. That was followed by having a more flexible schedule and improving benefits. 

Ultimately, the researchers explained that the pandemic not only changed consumers’ lives, but it also changed the way they work and think about work. To help combat the added stress, they recommend that employers use these findings and implement strategies that give consumers time to focus on their mental health. 

“During the pandemic, many employers switched to remote work where possible, thus providing greater flexibility for their employees,” said Dr. Evans. “Policies that promote flexible hours and breaks during the workday and provide other forms of support for employees to take care of themselves may also help employers retain staff in competitive markets.” 

The COVID-19 pandemic has increased stress levels in just about every area of consumers’ lives. Now, a new study conducted by researchers from the American...

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Air quality in offices may impact workers' productivity and cognitive function

A new study conducted by researchers from Harvard’s T.H. Chan School of Public Health explored how the air quality in an office can impact workers in several ways. 

Their work showed that poor ventilation at work can affect employees’ productivity levels and overall cognitive function. 

“Our study adds to the emerging evidence that air pollution has an impact on our brain,” said researcher Jose Guillermo Cedeño Laurent. “The findings show that increases in PM2.5 levels were associated with acute reductions in cognitive function. It’s the first time we’ve seen these short-term effects among younger adults. 

“The study also confirmed how low ventilation rates negatively impact cognitive function,” he continued. “Overall, the study suggests that poor indoor air quality affects health and productivity significantly more than we previously understood.” 

Improving air quality 

The researchers had over 300 office workers between the ages of 18 and 65 from around the world participate in the study. At each workers’ desk space, a sensor consistently monitored levels of PM2.5 and CO2, humidity, and temperature. Participants were prompted to complete cognitive assessments and workplace productivity surveys either when the sensor detected higher than normal levels of the pollutants or at scheduled times. 

The researchers learned that higher levels of both PM2.5 and CO2 can have significant impacts on the participants’ cognitive function and workplace performance. 

In terms of cognition, math skills were impacted by rising CO2 levels, while accuracy and response times took a hit when both pollutants increased. The participants also struggled to correctly answer questions on the cognitive assessments when pollution levels were highest. This means that not only is cognition affected, but the participants’ abilities to focus and complete tasks at work are also going to be affected. 

While improving ventilation has been a key component of reducing infection during the COVID-19 pandemic, this study also highlights that there are other significant benefits associated with better air quality in office buildings. 

“The world is rightly focused on COVID-19, and strategies like better ventilation and filtration are key to slowing infectious disease transmission indoors,” said researcher Joseph Allen. “Our research consistently finds that the value proposition of these strategies extends to cognitive function and productivity of workers, making healthy buildings foundational to public health and business strategy moving forward.”

A new study conducted by researchers from Harvard’s T.H. Chan School of Public Health explored how the air quality in an office can impact workers in sever...

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The top jobs that don’t require a college degree

With enhanced unemployment benefits expiring this week, there’s a strong chance that millions of unemployed Americans are busy polishing their resumes. Fortunately, there are plenty of job openings.

The Labor Department’s Job Openings and Labor Turnover Summary shows there were nearly 11 million job openings in July and only 8.7 million people who were out of work and looking for a job.

Job openings increased in several industries, with the largest increases in health care and social assistance, a sector trying to fill 294,000 slots. There were also more than 100,000 openings in financial services, hospitality, and food services.

But many businesses and industries still require applicants to have a degree from a four-year college. Many low-wage workers who have been collecting unemployment don’t meet that requirement.

No degree necessary

A lack of a college degree doesn’t mean they can’t land a good job, though. Skillpointe, a career placement organization, has published a list of the top 25 jobs in the U.S. that don’t require a college degree. Some, however, will require training and certification.

If you know your way around a computer, the top two jobs on the list might be appealing. Number one is software developer, and the second is systems analyst. 

"While retail and hospitality have faced significant challenges related to the Covid-19 pandemic, other industries still offer amazing opportunities with lots of growth, strong salaries, and future job security, all without a college degree," said Todd Wilson, SkillPointe’s founder. "These jobs do require some training, but fast-track options are available at local community colleges and trade schools for a fraction of the cost of a four-year program. Employer apprenticeships are also a great option."

When it comes to pay and benefits, Stillpointe says a software developer is by far the most attractive job, earning a median salary of $91,000. But other jobs also have their advantage.

Truck drivers are in demand

For example, truck drivers are in demand to help alleviate supply chain issues. Many transportation companies are providing generous signing bonuses and a median salary of $45,000. Others help with training and licensing.

The job of an information security analyst may have the best long-term future and pays a median salary of $100,000. These people are urgently needed to deal with the proliferation of cybersecurity threats.

Construction, technology, healthcare, and public service jobs dominate the top 25 list. Construction has the most jobs on the list with six and is expected to grow with increased infrastructure spending.

With enhanced unemployment benefits expiring this week, there’s a strong chance that millions of unemployed Americans are busy polishing their resumes. For...

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Keeping your camera off during virtual meetings may reduce work fatigue

Results from a new study conducted by researchers from the University of Arizona may help consumers maintain their energy levels while taking virtual meetings

According to their findings, keeping the computer camera turned off during virtual meetings can help consumers feel less tired and actually perform better in their roles

“There’s always the assumption that if you have your camera on during meetings, you are going to be more engaged,” said researcher Allison Gabriel. “But there’s also a lot of self-presentation pressure associated with being on camera. Having a professional background and looking ready, or keeping children out of the room are among some of the pressures.” 

Staying more engaged during work hours

The researchers collected more than 1,400 observations of more than 100 employees over the course of a four-week period. They looked at how often the participants kept their cameras on or off during meetings, their overall fatigue levels, and their effectiveness in subsequent meetings and other work-related tasks. 

It was clear that employees who kept their cameras on for most of their meetings struggled with their energy levels. Not only was keeping the camera on associated with more fatigue, but the employees were also less likely to participate in later meetings. This led to their overall work performance taking a hit. 

“When people had cameras on or were told to keep cameras on, they reported more fatigue than their non-camera using counterparts,” said Gabriel. “And that fatigue correlated to less voice and less engagement during meetings. So, in reality, those who had cameras on were potentially participating less than those not using cameras. This counters the conventional wisdom that cameras are required to be engaged in virtual meetings.” 

These findings were particularly true for women and new hires. The researchers explained that in both cases, these employees may feel that their jobs are on the line, and they feel pressured to always be on camera during meetings.

Moving forward, the researchers hope these findings help employers understand that having cameras on for virtual meetings isn’t the best way to measure employees’ productivity. Instead, eliminating that pressure can lead to better workplace performance. 

“At the end of the day, we want employees to feel autonomous and supported at work in order to be at their best,” said Gabriel. “Having autonomy over using the camera is another step in that direction.” 

Results from a new study conducted by researchers from the University of Arizona may help consumers maintain their energy levels while taking virtual meeti...

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Workplace disruptions may create a greater sense of belonging among coworkers

A new study conducted by researchers from the University of Cincinnati explored the positive benefits associated with coworkers disrupting each other in the workplace

Although some workers may feel like disruptions throw them off in terms of productivity, the team’s findings suggest that it can actually help reinforce camaraderie. The study highlighted that when coworkers are disrupted, it helps create greater feelings of belonging in the workplace

“If the past year of social distancing and isolation has shown us anything, it is that humans are social beings who have an inherent need for interacting with others,” said researcher Harshad Puranik, Ph.D. 

Strengthening workplace relationships

For the study, the researchers had 111 full-time workers complete surveys twice a day for three weeks. The participants answered questions about how often they got disrupted while working, their overall job satisfaction, how comfortable they felt with their coworkers, and how drained they felt by their jobs. 

Ultimately, the researchers found that there were repercussions to productivity when workers were interrupted; however, perhaps more importantly, they found that there was a social aspect involved. The study found that disruptions were associated with greater camaraderie in the workplace, and participants reported feeling like they belonged among their coworkers.

“Our study revealed that by providing this avenue for social interaction with one’s colleagues, work interruptions led to a greater sense of belonging,” said Dr. Puranik. “This sense of belonging, in turn, led to higher job satisfaction.” 

Weighing the positives and negatives

The researchers explained that there were some negatives associated with persistent workplace disruptions. Some participants reported feeling mentally drained by being interrupted because it interfered with their ability to complete tasks. 

However, the researchers say the positive social aspects outweighed the negative productivity aspects. While disruptions may make it harder to get things done at work, they can help coworkers build stronger social bonds. 

“The sense of belongingness mitigated the negative effect of interruptions on job satisfaction,” said researcher Heather C. Vough. “Thus, interruptions at work may have gotten a bad rap due to a failure to consider their human element.” 

A new study conducted by researchers from the University of Cincinnati explored the positive benefits associated with coworkers disrupting each other in th...

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CVS to raise minimum pay to $15 an hour by next summer

CVS has announced that it will raise its hourly minimum wage for workers from $11 to $15 over the course of the next year. The company said wage increases will start this month and starting hourly rates will hit the $15 mark by next July. 

The pay bump comes as companies struggle to attract workers as a result of pandemic-related factors. CVS noted that 65% of its hourly employees already make more than $15 an hour, but the pay increase should help it expand its workforce. The company has also dropped its high school diploma or GED requirement for most positions. 

"Attracting and retaining top talent across our businesses is critical as we continue to redefine what it means to meet people's health needs," CVS CEO Karen Lynch said Wednesday.

Raising pay

CVS joins other retailers in raising pay to help fill positions. Amazon, Target, and Best Buy have all recently unveiled plans to shift to a $15-an-hour starting rate. Walmart said the pay increase would help it keep its employment numbers high enough to keep up with changing consumer demand brought on by the pandemic. 

“We saw major changes to customer behavior last year we believe will be lasting, and we have to continue working to stay in-stock, deliver items on time and provide the best omni experience possible,” CEO John Furner told The Wall Street Journal.

The federal minimum wage stands at $7.25 an hour. President Biden has expressed support for raising the minimum to $15, but a proposal to increase it to that figure stalled in Congress back in February. 

CVS has announced that it will raise its hourly minimum wage for workers from $11 to $15 over the course of the next year. The company said wage increases...

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Data shows it paid to switch jobs during the pandemic

With people suddenly able to work for anyone from anywhere during the pandemic, lots of people changed jobs. When they did, the data shows they earned more money.

In a report from ADP, researchers found that wage growth among people who changed jobs increased 5.8% since June 2020. But they appear to be the exception since overall wage growth slowed by 2.3% in the second quarter.

"ADP data shows a rise in U.S. job switchers across industries along with increased wage growth for switchers," said Nela Richardson, chief economist at ADP. 

Richardson said there could be a number of reasons for that. One possibility is employers increasingly had a difficult time finding talent and were willing to offer competitive compensation to get the people they wanted.

Hospitality workers didn’t benefit

But there was one area where job switchers didn’t benefit. Leisure and hospitality employees not only experienced the greatest job loss during the pandemic, but both job holders and job switchers are now earning lower wages on average compared to a year earlier.

Some of the biggest wage increases were provided to job switchers in mining and resource businesses, such as oil production. Their new jobs paid an average of nearly 12% more than the jobs they left.

Job switchers in professional and business services earned nearly 10% more in their new jobs and those who took new jobs in information services saw their salaries go up more than 9%.

Employment growth for all age groups increased as the economy continued to reopen and COVID-19 related restrictions were lifted in the second quarter. Younger workers got the most new jobs during the period.

Younger workers’ paycheck grew less

Workers 24-years-old and younger increased their employment by 13.5% last month. However, wage growth was lower among that age group.

The possibility of continued remote work could mean 2021 could see even more job switching. In a recent investigation, Slate interviewed a number of people who have already quit their jobs because they didn’t want to return to an office.

Employers may be reevaluating their return-to-office mandates in light of this trend. It not only might help retain their current workforce, it could also make it easier to recruit top shelf talent -- those willing to switch jobs if it means they continue working remotely.

With people suddenly able to work for anyone from anywhere during the pandemic, lots of people changed jobs. When they did, the data shows they earned more...

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Staying calm and appearing happy helps leaders seem more effective, study finds

A new study conducted by researchers from the University of California at Riverside explored what qualities are important for leaders to be the most effective

Their findings suggest that leaders tend to get the most respect from workers when they adopt certain emotional expressions during communication. The researchers explained that maintaining a happy, calm disposition is likely to yield the best results -- especially for women in positions of power. 

“When we interact with a leader regularly, such as our immediate boss or supervisor, we have enough firsthand information to evaluate their effectiveness,” said researcher Thomas Sy. “But we usually have little contact with leaders at the highest levels and less information about them. Therefore we tend to rely on schemas. Schemas are powerful. Even in the absence of data they shape our behavior.” 

What makes an effective leader?

The researchers conducted five surveys that included responses from more than 1,200 participants about what qualities best described effective leaders. Specifically, the team wanted to see what workers thought about their leaders’ emotions and how they would react to different emotional displays.

Ultimately, the researchers learned that having a generally positive attitude was beneficial for those in leadership roles. Participants responded best to leaders that were calm and cheery in interactions, as opposed to those who were frequently worried or angry. 

“Every role that has emotions that must be expressed, including leaders,” said Sy. “To be effective, leaders must perform emotional labor. What was surprising in our research is that women were rated more effective, and this could be explained by implicit theories of leadership emotions.” 

The researchers also found that when women and men both had positive demeanors, women were considered to be more effective leaders. However, status also played a role; those who were higher up the leadership chain had more freedom to express negativity without being considered ineffective, whereas those who had a lower rank didn’t have that much leeway in terms of being negative. 

Moving forward, the researchers hope these findings are helpful for consumers in leadership positions.

“Past research shows the emotions of a leader affect the performance of followers,” Sy said. “The leader’s emotions are contagious, spread throughout the team, and affect the effectiveness of the whole group.” 

A new study conducted by researchers from the University of California at Riverside explored what qualities are important for leaders to be the most effect...

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Gold falls to 11-week low over the past 24 hours

Gold tumbled to its lowest value since mid-April on Tuesday, in part due to a stronger dollar and because of anticipation related to this week’s U.S. jobs report. 

The Labor Department is set to release data on Friday that will show a gain of 690,000 jobs this month, compared with 559,000 in May, according to a Reuters poll. Bob Haberkorn, senior market strategist at RJO Futures, says a stronger dollar is combining with the expected jobs data to put downward pressure on gold. 

“The calls for interest rates to trend higher are going to be much louder from the Fed if we do get a better-than-expected jobs number,” he told Reuters. 

In the run-up to the release of the report, Spot gold fell 0.93% to $1,761.66 per ounce (as of 1:39 pm EDT Tuesday) after reaching $1,749.20 -- its lowest value since April 15. U.S. gold futures slipped about 1%, hitting $1,763.60.

Market uncertainty waning 

In early June, gold was valued at over $1,900 an ounce -- a six-month high. The precious metal performed well throughout the pandemic, a trend reflective of its tendency to be utilized as a “safe haven” asset during times of market uncertainty. 

But now that markets are strong, investors are finding it harder to make a bullish case for gold. Friday’s employment numbers will come on the back of comments from Richmond Fed President Thomas Barkin, who suggested that the Fed had made “substantial further progress” in its inflation goal in order to begin tapering asset purchases.

"It's pretty clear to me we have had substantial further progress against our inflation goal," Barkin said during an event at the Rotary Club of Atlanta. "I'm pretty optimistic about the labor market. ... If the labor market opens as I suggested it might, then I think we're going to get there in relatively short order."

Gold tumbled to its lowest value since mid-April on Tuesday, in part due to a stronger dollar and because of anticipation related to this week’s U.S. jobs...

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Bed Bath & Beyond announces new employee benefits

With companies having to compete for workers to fill job openings, Bed Bath & Beyond has announced a number of new employee benefits.

Starting July 1, the retailer will implement three new paid benefit programs including paid parental leave, short-term disability, and an associate relief fund.

The company will also close its stores on Thanksgiving Day, the latest retailer to announce that step as holiday sales and promotions increasingly move online.

"Our purpose is to make it easy to feel at home, and that begins right here with our associates and making investments that elevate our people-powered culture," said Lynda Markoe, chief people and culture officer at Bed Bath & Beyond. "We're thrilled to implement these new company-paid programs to support the well-being of our associates and their loved ones.”

The new benefit programs include:

  • Paid parental leave: This industry-leading program will provide for 100% of pay for up to 8 weeks after the birth, adoption or fostering of a new child for parents. This program will be offered to all US benefits-eligible, full-time Associates.

  • Company-paid short-term disability: Currently, company employees have the option of paying for a short-term disability program. Starting July 1, Bed, Bath & Beyond will cover the cost and provide 100% of pay for up to eight weeks and 60% of pay thereafter up to 26 weeks. The program will be offered to all US benefits-eligible full-time associates.

  • Associate relief fund: The creation of a fund to support associates through various hardships. All employees, full-time and part-time, will be eligible to request grants through the fund. The company will pay the costs of the program with an initial company investment and will match 50% of all employee contributions through the rest of the fiscal year.

Effects of the pandemic

The rise in corporate benefits for employees can be traced to the coronavirus (COVID-19) pandemic. Not only have some businesses taken steps to reward the efforts of their employees, but they also hope to keep the workers they have while attracting new ones to fill open slots.

With airports once again filled with travelers, the Transportation Security Administration (TSA) and airport restaurants are scrambling for employees. The TSA is offering $1,000 hiring bonuses as part of its push to add 6,000 screeners by the end of September. 

Oregon hospitals are facing a nursing crunch, again largely caused by the pandemic. Many told The Oregonian the emergency rooms have been filled lately with patients suffering mental health issues, including anxiety and depression.

With companies having to compete for workers to fill job openings, Bed Bath & Beyond has announced a number of new employee benefits.Starting July 1, t...

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Offering employees rewards may help boost creativity, study finds

A new study conducted by researchers from Rice University explored the ways that employers can get the most creativity out of their employees. 

The findings showed that having a rewards system in place was associated with the best creative outcomes. Companies that offered their workers several different incentive options got the best results. 

“Organizations spend a lot of resources and exert a great deal of effort in designing incentive schemes that reward employees who exhibit creativity at work,” said researcher Jing Zhou.

“Our results showed that the effort may be a bit misplaced. Instead of discovering one reward type that is particularly effective at promoting creativity, what is more effective is to provide the employees with the opportunity to choose from several reward types, if they submit one or more ideas that are among the top 20% creative ones.”  

What sparks creativity?

The researchers conducted a two-part study to determine how workplace reward systems can impact employees’ creativity. In the first study, employees at a company were offered to choose one of three rewards: a donation made to a charity of the employees’ choice, monetary compensation, or getting priority for days off. The workers then went about their usual routines, but they prioritized the generation of creative ideas.

The researchers learned that incentivizing creativity was a successful way to generate fresh ideas in the workplace. When employees felt like their ideas were being supported and encouraged by their bosses -- so much so that they would be rewarded for them -- they were more likely to think outside the box. 

The study also showed that the rewards system prompted the employees to come up with more ideas than they had been before the incentive program. Those ideas were also more creative than they previously were.

In the second part of the study, the researchers expanded their reach to a dozen companies to see if the results held up. Ultimately, the findings were the same; employees’ creativity increased when a rewards system was in place. 

A new study conducted by researchers from Rice University explored the ways that employers can get the most creativity out of their employees. The find...

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Workers perform better and are more resilient when employers are good listeners

A new study conducted by researchers from Rice University explored how bosses can foster more resiliency among their employees. 

According to their findings, bosses that actively listen to their employees and encourage on-the-job training are the most likely to create a culture of resiliency among their workers. 

“Understanding what organizations can do to help employees become more resilient is the focus of our work in my Working Resilience Research Laboratory,” said researcher Danielle King. “This research project offered an opportunity to uncover the important role of leadership and employee voice in the resilience process.” 

Cultivating strong workplace relationships

For the study, the researchers analyzed boss-employee interactions from nearly 50 different teams from five Canadian start-ups. The team paid close attention to what kind of environment leaders fostered among their employees and how different workplace cultures handled things like making mistakes, learning new things, and communicating. 

While everyone makes mistakes at work, how bosses handled their employees’ mistakes said a lot about the team’s overall resiliency. The researchers learned that employees felt the best in their roles and were more likely to put in the most effort when their bosses were encouraging and attentive listeners. When employees felt that they had a voice in conversations with their bosses, it was associated with the best workplace outcomes. 

Additionally, leaders that made it a point to prioritize learning on the job cultivated better teams. It was important for employees to feel that it was okay to try new things and mess up along the way, so long as the opportunity was used for growth and future development. 

The researchers hope that organizations can learn from these results. The way that bosses interact with their employees can greatly impact everyone’s success, and having workers that feel appreciated and encouraged is an important part of that puzzle. 

“Knowing that you have a leader who is focused on learning and not just on performance outcomes is critical,” King said. “It’s also important for them to be intentional about communicating this regularly to employees, as it can make all the difference in building more resilient teams. 

“Leaders need to verbally reward a learning mindset. For example, when a boss responds to an employee who makes an on-the-job error by saying, ‘Great, now you can learn from this experience,’ rather than berating them for making a mistake, it makes a big difference.” 

A new study conducted by researchers from Rice University explored how bosses can foster more resiliency among their employees. According to their find...

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Worker shortage puts employees in a stronger position

Business leaders are expressing growing concern about a shortage of workers. But what might be a major problem for businesses may be a generational opportunity for the unemployed and those seeking to change jobs or careers.

In an interview with the Financial Times, St. Louis Federal Reserve Bank President James Bullard said the labor market is a lot tighter than it appears. Despite a still-high unemployment rate from the coronavirus (COVID-19) pandemic, he says there are a lot of job openings and a shortage of people to fill them.

“I’m evolving toward a judgment where labor markets should be interpreted as fairly tight, and you’re certainly seeing that in firms saying that they’re just going to go ahead and raise wages for these types of workers,” Bullard said. “They’re going ahead and saying, ‘let’s pay some signing bonuses to get to get workers in the door’, you’re seeing some businesses actually just staying shuttered because they can’t find enough workers.” 

‘Crisis for business’

The U.S. Chamber of Commerce has expressed an even stronger view, calling the present labor market a “crisis” for businesses. It launched a major campaign to address the issue.

“As we stand on the cusp of what could be a great American resurgence, a worker shortage is holding back job creators across the country,” said chamber CEO Suzanne Clark. 

The chamber is lobbying for federal and state policy changes that will help train more Americans for in-demand jobs, remove barriers to work, and double the number of visas available for legal immigrants. 

The labor shortage isn’t just affecting the U.S. Research compiled by ManpowerGroup shows that 69% of the world’s employers are struggling to find workers with the right blend of technical skills and human strengths.

"Despite the impact of the pandemic on global unemployment we are already seeing signs of a much tighter labor market in many countries," said Jonas Prising, ManpowerGroup’s chairman and CEO. "Companies have increasingly specific skills needs as transformation accelerates, making the need to find new ways to close the inequity gaps that exist at the intersection of race, gender, education and economic status even more urgent.”

Good and bad for consumers

Worker shortages may ultimately affect consumers in the form of longer wait times in restaurants and shortages of popular items at stores. But for those looking for a job, opportunities have never been greater.

In addition to more competitive wages, some businesses are offering new employees signing bonuses. A McDonald’s franchise in Illinois has reportedly promised new employees a free iPhone after they’ve been on the job for six months.

Amazon, Uber, and Hawaiian Airlines are just some of the companies that have recently offered signing bonuses to new employees. 

Business leaders are expressing growing concern about a shortage of workers. But what might be a major problem for businesses may be a generational opportu...

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Sleep disorder caused by shift work may increase the risk of car crashes, study finds

Several recent studies have highlighted the long-term health risks associated with shift work -- especially overnight shifts. 

Now, researchers from the University of Missouri-Columbia explored shift work sleep disorder, which is when shift workers have inconsistent sleeping patterns due to several nighttime disruptions. Their work revealed that these sleeping issues can make consumers more likely to be involved in a car accident. 

“In the past, researchers have studied sleep disorders primarily in a controlled environment, using test-tracks and driving simulators,” said researcher Praveen Edara. “Our study goes a step further by using actual observed crash and near-crash data from approximately 2,000 events occurring in six U.S. states. We’ve known for a while now that sleep disorders increase crash risk, but here we are able to quantify that risk using real-world crash data while accounting for confounding variables such as roadway and traffic characteristics.” 

Assessing crash risk

The researchers analyzed data from the Strategic Highway Research Program, which included information on nearly 2,000 crashes across six states. Study participants reported on their typical sleeping habits, their history with sleep issues like insomnia or sleep apnea, and their work experience. 

The researchers found that there was a clear link between those with shift work sleep disorder and an increased risk of car crashes. Participants with shift work sleep disorder were three times more likely to end up in a car wreck, which was higher than any other sleep condition. Comparatively, participants with sleep apnea or insomnia were 30% as likely to be in a car crash. 

“This discovery has many major implications, including the need to identify engineering counter-measures to help prevent these crashes from happening,” said Edara. “Such measures can include the availability of highway rest areas, roadside and in-vehicle messaging to improve a driver’s attention, and how to encourage drivers who may have a light-night work shift to take other modes of transportation, including public transit or ride-share services.” 

Because of the large number of consumers that do shift work and struggle with sleep, the researchers’ goal is to find a way to make the roads safer for all drivers. Moving forward, the team hopes to expand these findings and work with experts in the medical field to ensure the health and safety of all shift workers. 

“We want to partner with public health and medical professionals whose expertise is in sleep-related research to better understand why this is happening,” said Edara. “That will also allow us to explore what kind of countermeasures we can develop and test to improve the overall safety of these drivers and the other motorists around them."

Several recent studies have highlighted the long-term health risks associated with shift work -- especially overnight shifts. Now, researchers from the...

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Chipotle to raise pay rate to $15 per hour in bid to attract more workers

Chipotle has announced that it’s raising pay for employees as it looks to grow its workforce by 20,000.

On Monday, the company said it will pay new and existing hourly and salaried employees an average of $15 an hour by the end of June. The wage increases will be rolled out throughout the next few weeks. Hourly crew members’ starting wages will range from $11 to $18 per hour.

The restaurant chain said employees will also have opportunities to advance to a “restaurateur” position (the highest general manager position in the system) within a three-and-a-half year timeframe, with an average compensation of $100,000 a year. The company has also introduced employee referral bonuses of $200 for crew members and $750 for apprentices or general managers. 

A virtual career fair for prospective employees will be held this Thursday, May 13, from 10 a.m. to 1 p.m. PT on Discord, a social platform. The event will include live sessions with Chipotle employees that highlight benefits, career paths, cooking demos, and more.

"Chipotle is committed to providing industry-leading benefits and accelerated growth opportunities, and we hope to attract even more talent by showcasing the potential income that can be achieved in a few short years," said Marissa Andrada, chief diversity, inclusion, and people officer, in a statement. "We're looking for people who are authentic, passionate and want to help cultivate a better world through real food and real personal development."

Restaurants vying for workers 

Chipotle and other restaurant chains are in the midst of a labor shortage brought on by the pandemic. Major chains including IHOP, Applebee’s, Taco Bell, and KFC have all announced their intention to bring on more workers, and smaller businesses are struggling as well.

“Finding new hires is a skillset that it was not 16 months ago,” Matt Glassman, co-owner of The Greyhound Bar & Grill in Los Angeles, told CNBC last week. “We have had an unbelievable amount of people schedule an interview and not show up. We have never had this problem before.”

Although first-time claims for unemployment benefits are declining, many people remain unemployed for different reasons. Many parents have cited the need to balance a household budget while considering child care costs and schooling needs; other people may be remaining unemployed due to better unemployment benefits. 

Chipotle has announced that it’s raising pay for employees as it looks to grow its workforce by 20,000.On Monday, the company said it will pay new and...

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Quickbooks glitch kept some people from getting their paycheck

Quickbooks said Friday that it recently encountered a “third-party” issue when processing direct deposits. The glitch kept some people from getting their paycheck deposited into their account on time. 

“We identified a third-party issue with direct deposit processing this morning that has delayed the deposit of your employees’ paychecks into their account,” Quickbooks said.

Quickbooks, which is owned by Intuit, apologized to employers for “any inconvenience this may have caused” and said the issue has since been resolved. The company said it’s working on communicating with “impacted customers.” 

The company said those affected by the issue should see the funds available in their account by the end of the day. 

“We know how critical each paycheck is to your team. This is, even more, the case in our current environment,” the company said. “Thank you for your patience as we focus to ensure your employees’ funds are available as soon as possible.” 

Quickbooks said Friday that it recently encountered a “third-party” issue when processing direct deposits. The glitch kept some people from getting their p...

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Biden signs order to raise minimum wage for federal employees to $15 per hour

President Biden issued an executive order early Tuesday that calls for workers on federal contracts to be paid a $15 minimum wage. 

Biden said he considers these workers critical to the functioning of the federal government and includes everyone from cleaning professionals and maintenance workers to nursing assistants who care for the nation’s veterans. It also applies to food service workers and laborers who are working on the President’s wide-scale infrastructure overhaul.

“This executive order will promote economy and efficiency in federal contracting, providing value for taxpayers by enhancing worker productivity and generating higher-quality work by boosting workers’ health, morale, and effort,” the White House said in a statement.

“It will reduce turnover, allowing employers to retain top talent and lower the costs associated with recruitment and training. It will reduce absenteeism, a change that has been linked to higher productivity, not just by the employees who are more present, but by their co-workers, too.”

Pinning its hopes to a recent Harvard study on the payoffs of higher pay, Biden is hoping his move will also reduce supervisory costs. The study findings show that raising the hourly wage of warehouse workers and customer service representatives at an unnamed Fortune 500 online retailer yielded a return of approximately $1.50 through increased productivity and reduced costs. If that study proves true for Biden, he feels confident that the federal government’s work will be done better and faster. 

The pay raise specifics

Biden’s wage increase won’t show up in federal workers’ next paycheck, but he has locked it in to start in the opening months of 2022. Contract solicitations will need to use the new wage adjustment by the end of January, and all agencies will need to use the $15 minimum in new age contracts by the end of March. The White House said federal agencies must also put the higher wage into effect in all existing contracts when contracts are extended, which usually happens on an annual basis.

After the 2022 increase, Biden’s plan will continue to index the minimum wage to an inflation measure so that it can be reset each year to reflect changes in the most current cost of living benchmark.

Tipped workers will have a longer waiting period than other workers. The new plan will eliminate the tipped minimum wage for federal contractors by 2024. Even though federal statute allows employers of tipped workers to pay a sub-minimum wage, employers can do that only as long as an employee’s tips fill in that gap and bring their wage up to the level of the minimum wage. Biden said that this executive order will ensure tipped employees working on federal contracts will earn the same minimum wage as other employees on federal contracts.

Federal contract workers who have disabilities are also guaranteed a minimum of $15 per hour, as are outfitters and guides operating on federal lands. That last move revokes a previous executive order from President Trump.  

President Biden issued an executive order early Tuesday that calls for workers on federal contracts to be paid a $15 minimum wage. Biden said he consid...

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House members pass the Paycheck Fairness Act to help bridge the gender pay gap

The U.S. House of Representatives passed an overhaul of existing labor laws on Thursday. If enacted as written, the new bill -- the Paycheck Fairness Act --  should provide “more effective remedies to victims of discrimination in the payment of wages on the basis of sex, and for other purposes.”

The legislation certainly has a champion in President Biden. He said the bill is “more than just an economic imperative — it’s a moral imperative as well.” 

“We are still a long way from achieving pay equity in America. In nearly every job — more than 90 percent of occupations — women are still earning less than men. ... Those gaps are an affront to our values as a nation — they are unacceptable to me, and they should be unacceptable to every single American,” Biden said.

Addressing the gender pay gap

Studies show that there are sizable gender pay gaps across America. In Provo, Utah, the median income for a woman is 40% less than a man, and the White House cited data showing that Black women make only 63 cents for every dollar a white man earns.

To rectify situations like that, the Paycheck Fairness Act would amend portions of two existing laws: the Fair Labor Standards Act of 1938 and the Equal Pay Act of 1963. It would update enforcement, remedies, and exceptions to prohibitions against gender discrimination in what workers are paid.

The proposal sends a signal to employers that if they “acted with malice or reckless indifference,” they’re looking at “punitive damages as may be appropriate.”

One intriguing part of the legislation is closing the gender pay gap among teenagers -- the age group from which pay gaps originated. To close that gap, the legislation would prompt a serious examination of the average amount earned by teenage boys and girls in informal jobs (such as babysitting) and formal jobs (like positions in retail and restaurants).

Retailers express opposition while advocates praise bill

ConsumerAffairs found that there’s also a gap in the way organizations are responding to the legislation. 

When ConsumerAffairs reached out to the National Retail Federation (NRF) for comment, the organization shared a letter it penned to House Speaker Nancy Pelosi (D-CA) and Minority Leader Kevin McCarthy (R-CA). The NRF’s stance is that the new act could be costly for employers to defend against in court and that there are already laws in place that provide necessary protections.

“This legislation will significantly limit legitimate, non-discriminatory pay differences and provide for unlimited compensatory and punitive damages in certain instances.” the NRF wrote.

“Two federal statutes already bar gender-based pay discrimination. Both the Equal Pay  Act of 1963 and Title VII of the Civil Rights Act of 1964 prohibit unequal pay on the basis of sex and provide for substantial remedies in instances where gender-based pay differentials do occur. In contrast, the Paycheck Fairness Act would prohibit many legitimate, non discriminatory practices that retailers use to attract and retain talent and would create uncertainty  under the law.”

However, advocates say the Paycheck Fairness Act is necessary to address the inequities that have plagued women and minorities in the U.S. for decades.

“The Paycheck Fairness Act is sorely needed to make it easier for women to challenge pay discrimination – it addresses some of the key factors that research shows perpetuate pay discrimination: lack of transparency, the importing of discrimination by relying on prior salary in hiring decisions, the lack of monitoring and oversight, and the lack of real remedies,” Ariane Hegewisch, Senior Research Fellow at the Institute for Women's Policy Research, told ConsumerAffairs.

“The gender wage gap- the fact that it has hardly budged at all during the last 20 years, that at the current rate of progress, it will take 200 years (!!) for Latinas to reach equal pay with white men, and 130 years for Black women- is a key indicator for the structural inequalities IWPR is working to tackle.”

The U.S. House of Representatives passed an overhaul of existing labor laws on Thursday. If enacted as written, the new bill -- the Paycheck Fairness Act -...

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Fed Chairman says economic outlook has ‘brightened substantially’

Federal Reserve Chairman Jerome Powell says the U.S. economy is poised to grow rapidly, barring another wave of COVID-19. 

During an interview on CBS News’ “60 Minutes” on Sunday, Powell said the economy is at an “inflection point” right now and that the nation could see a sharp rise in new jobs in the coming months.

"What we're seeing now is really an economy that seems to be much at an inflection point, and that's because of widespread vaccination and strong fiscal support, strong monetary policy support,” Powell said. “We feel like we're at a place where the economy's about to start growing much more quickly and job creation coming in much more quickly. The outlook has brightened substantially."

However, he cautioned that the fate of the economy is still very much in the hands of the virus. 

"The principal risk to our economy right now really is that the disease would spread again. It's going to be smart if people can continue to socially distance and wear masks," he said in the interview. 

Health officials are continuing to urge people to wear masks, socially distance, and get vaccinated as soon as possible. According to CDC data, more than 183 million vaccines have been administered in the U.S. so far. 

Cyberattacks a big concern

Powell said there’s a “very, very low” chance that the economic downturn set in motion by the pandemic will be as dire as the 2008 financial crisis. However, he said cyberattacks on financial institutions remain a major concern. 

"The world evolves, and the risks change as well and I would say that the risk that we keep our eyes on the most now is cyber risk," Powell said. "There are scenarios in which a large financial institution would lose the ability to track the payments that it's making, where you would have a part of the financial system come to a halt, and so we spend so much time, energy and money guarding against these things." 

Still, the Fed chairman said he’s “highly confident" that the economy will come out of the pandemic "better and more inclusive" than it was before. 

Federal Reserve Chairman Jerome Powell says the U.S. economy is poised to grow rapidly, barring another wave of COVID-19. During an interview on CBS Ne...

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How can consumers find the most success while working from home?

The COVID-19 pandemic has changed the way many consumers go to work each day; rather than a long commute on public transportation, remote working has turned many kitchen tables and spare bedrooms into home offices. While working from home is more convenient for many people, it doesn’t come without its own set of challenges. Now, researchers are explaining how to get the most out of remote work

According to researchers from Rensselaer Polytechnic Institute, having boundaries between work life and personal life is vital to maintaining workplace success while at home. Their study highlighted the best tips that have been collected from more than twenty years of data about remote working

“A key challenge most people face when they work from home is how to effectively navigate the boundaries between their work life and home life, all while continuing to be efficient and productive in their job,” said researcher Timothy D. Golden. “The need to be able to adeptly manage the boundaries between work and family is absolutely critical today.” 

Getting organized at home

The COVID-19 pandemic has forced more consumers than ever before to work from home, and many have now been home for over a year. Finding success at work, while also still being able to relax at home, can be difficult. 

For consumers to make the most of their time working at home, the researchers recommend having an organizational system. Sticking to a consistent routine each day is likely to yield the best work-from-home outcomes. It’s also important to identify things that could be the biggest distractions at home. What things are likely to make the most noise? What things could pull your attention from time-sensitive tasks? For a good roundup of remote work equipment and collaboration tools, checkout B2B Reviews' remote work toolkit

Working from home, especially in the last year, often means having several family members in close proximity. Golden explained that setting boundaries with other people in the home, especially where noise and distractions are concerned, can help consumers focus on their work. 

“You’re in a different physical and mental space when you’re working remotely or in the home domain,” said Golden. “Communication becomes particularly crucial when you’re immersed in the home environment to balance everything successfully.” 

The COVID-19 pandemic has changed the way many consumers go to work each day; rather than a long commute on public transportation, remote working has turne...

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LinkedIn adds ‘stay-at-home mom’ as job title on its platform

LinkedIn has announced that it’s introducing “stay-at-home mom” to its list of job titles. The Microsoft-owned social network said the move is intended, in part, to help parents impacted by the COVID-19 pandemic reenter the workforce. 

The pandemic led to a dramatic surge in the number of mothers who were forced to exit the labor market in order to stay home to raise children -- but women’s unpaid work in raising children has long gone largely unrecognized by society. 

In a Medium post that went viral last month, Heather Bolen called out LinkedIn for its “implicit bias against women” and said a simple change to its drop-down menu options could help millions of women reenter the workforce in the wake of the pandemic year. 

“By simply modernizing its profile editing options, LinkedIn holds the key to encouraging transparent dialogue about employment gaps,” Bolen wrote. “These conversations could help set the stage for improvements in company leave policies and work arrangements that better support primary caregivers.”

Caregiver options lacking

Bolen said that the only “viable” option LinkedIn previously offered to describe her years as a stay-at-home mom was “self-employed” or “freelance.” 

“Neither of which adequately represents my unpaid work stint,” she wrote in the article. “I would also argue that being a SAHM is full-time, but of course, LinkedIn intends to describe paid work only.”

LinkedIn previously had “zero pre-populated options to identify maternity leave, parental leave, adoption leave, sick leave, bereavement leave, elderly care leave, or for long term injury/illness, education/re-training, volunteering, long term travel, a gap year, a sabbatical — or for a pandemic,” Bolen wrote.

LinkedIn making changes

Now, on the heels of a year that forced more than 2.3 million women out of the workforce, LinkedIn has recognized the need for better options for those who took a caregiving hiatus. 

The social network announced Tuesday that it would add stay-at-home mom” as a job description. LinkedIn executives told Fortune that they “wholeheartedly” agreed with Bolen’s critiques. 

“We need to normalize employment gaps on the profile to help reframe hiring conversations,” Bef Ayenew, director of engineering at LinkedIn, told Fortune. Ayenew added that the changes are “a stopgap solution” while LinkedIn works on a larger revamp of its digital resumes over the next few months. 

LinkedIn has announced that it’s introducing “stay-at-home mom” to its list of job titles. The Microsoft-owned social network said the move is intended, in...

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Ford to let some employees work from home permanently

Workers across the U.S. are still trying to figure out if and when they’ll need to return to the office, but Ford employees now know exactly where they stand. 

The company reportedly told its staff Wednesday that it will be moving to a hybrid work schedule that will allow some workers to come into the office on some days and work from home on others. Around 30,000 workers will be able to work from home indefinitely, with the addition of flexible hours approved by managers. 

Ford now joins several other major companies that have decided to extend work-from-home schedules. Microsoft also told its employees back in October that it would be adopting a hybrid work schedule, and Facebook CEO Mark Zuckerberg said that nearly half of the platform’s employees could be working remotely on a permanent basis within the next 10 years. 

“The COVID-19 pandemic has challenged all of us to think, live, and work in new ways,” said Microsoft Chief People Officer Kathleen Hogan. 

Working from home after the pandemic

Ford’s decision is one that may become increasingly common in the U.S. A recent report by The Conference Board suggests that employers are starting to come around to the idea of workers staying at home to reduce the amount of money spent on office space and other associated costs.

What does that mean for American workers? For one, it could allow them to move to new, more affordable areas of the country. That shift could represent a tipping point that changes the economy and job market as we know it. 

“If [working from home] trends hold, millions of workers may relocate over the next decade in search of lower living expenses and higher quality of life,” said The Conference Board Chief Economist Dana Peterson. “As employees disperse beyond commuter zones, companies may find it increasingly difficult to reverse a decision to embrace remote work.” 

Workers across the U.S. are still trying to figure out if and when they’ll need to return to the office, but Ford employees now know exactly where they sta...

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Taking breaks during the workday can lead to better job performance

Many consumers struggle with taking time away from their desks during the workday; however, findings from a new study conducted by researchers from North Carolina State University may encourage more employees to maximize their break time. 

The researchers found that when consumers feel tired during a day at work, taking a brief break from their responsibilities can actually be the best thing for their productivity and job performance.

“A micro-break is, by definition, short,” said researcher Sophia Cho. “But a five-minute break can be golden if you take it at the right time. Our study shows that it is in a company’s best interest to give employees autonomy in terms of taking microbreaks when they are needed -- it helps employees effectively manage their energy and engage in their work throughout the day.”  

The benefits of taking microbreaks

The researchers conducted two concurrent surveys to determine what effect taking frequent short breaks had on consumers’ workplace productivity and energy levels. One study surveyed more than 200 workers in South Korea, and another surveyed nearly 100 U.S. workers. Participants completed surveys several times per day and answered questions about their typical workplace behavior, how often they take breaks, and how their energy levels varied throughout the workday. 

The researchers learned that microbreaks were an essential part of maintaining employees’ overall wellness and energy levels. Their study showed that the participants were more likely to preserve their energy and complete their tasks more efficiently when they took frequent short breaks throughout the day.

Taking more breaks was even more beneficial when employees reported feeling tired at the start of the workday. Taking microbreaks boosted their performance at work and helped them feel less tired as the day progressed. 

“Basically, microbreaks help you manage your energy resources over the course of the day -- and that’s particularly beneficial on days when you’re tired,” said Cho. 

Ultimately, the researchers hope that more employers prioritize their employees’ mental health and wellness. When taking microbreaks is encouraged within the company, employees are more likely to utilize that time and give a better work performance. 

“When people think their employer cares about their health, they feel more empowered to freely make decisions about when to take microbreaks and what type of microbreaks to take,” Cho said. “And that is ultimately good for both the employer and the employee.” 

Many consumers struggle with taking time away from their desks during the workday; however, findings from a new study conducted by researchers from North C...

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Biden’s Labor Department blocks Trump administration independent contractor rules

President Biden’s Labor Department has blocked Trump administration rules that would make it easier to classify workers as independent contractors. 

The rules, which were published January 7 in the Federal Register and set to take effect this week, stated that workers should be considered contractors if they are able to control their own schedules, have a lack of direct supervision, and freedom to work for other companies. 

Uber and Lyft drivers, for example, would not be entitled to overtime and minimum wages because they have flexibility. Now, the proposed rules have been put on hold until May 7, when the Labor Department will review them again.

Debate over driver classification

The Labor Department’s action could potentially lead to new challenges to California’s AB5 legislation, which took effect last year. Under AB5, workers must be treated as employees if they work in the same business as the company that pays them. 

Uber and Lyft pushed back against the legislation in the form of a $205 million campaign. The ride-hailing firms ultimately passed Proposition 22 and were allowed to continue classifying their drivers as contractors. Although AB5 remains in place, it’s possible that the Labor Department could eventually classify drivers as employees. 

In a statement, Uber said it “looks forward to working with the Biden administration and the Department of Labor on this rule-making to ensure independent workers have access to new benefits and protections they deserve.”

President Biden’s Labor Department has blocked Trump administration rules that would make it easier to classify workers as independent contractors. The...

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Internet access and computer skills can limit consumers' employment and earning potential, study finds

With much of the world turning virtual during the COVID-19 pandemic, having access to the internet and working computer equipment has been more essential than ever. While disparities in internet access have been a longstanding issue, the pandemic has highlighted how a lack of these services can affect consumers financially. 

According to findings from a new study conducted by researchers from the University of Houston, having consistent access to the internet and an understanding of information technology (IT) skills tends to lead to better job prospects and higher-earning positions. 

“Unemployment and low wages remain pressing societal changes in the wake of increased automation, more so for traditionally disadvantaged groups in the labor market, such as women, minorities, and the elderly,” the team wrote. “However, workers who possess relevant IT skills might have an edge in an increasingly digital economy.” 

Expanding access to internet services

To better understand how internet access and computer skills put consumers in a better economic position, the researchers pulled nearly a decade’s worth of data from a Turkish Statistical Institute survey. Respondents answered questions about their income level, occupation, household internet use, and IT knowledge. 

The survey clearly revealed that participants who had consistent internet access and basic computer skills had an employment advantage. Not only were these participants more qualified for jobs, but they were able to correspond with hiring managers and interview virtually. Ultimately, these factors also led to making more money because participants with the strongest IT skills had the highest salaries. 

This was true even when specific positions didn’t require a working computer knowledge. Employers were more attracted to applicants who had experience with basic things like sending emails or saving files. 

“Very few people can get these skills from their employer,” Pavlou said. “Workers are expected to obtain these IT skills themselves, in order to get a job in the first place. And the less-privileged population they are, the harder time they have obtaining these skills that require computer equipment and internet access.” 

How does the pandemic play a role?

Though these findings looked at earnings and job opportunities prior to the COVID-19 pandemic, Pavlou and his team believe that the last year of remote working and schooling will undoubtedly impact consumers moving forward. As more and more aspects of our lives become digital, it’s more important than ever for consumers to have access to the internet and the skills to utilize internet-enabled devices. 

“The digital divide is a major societal problem,” said Pavlou. “I think the pandemic will make it even more pronounced. People with basic IT skills will have access to more opportunities, and it is imperative for educational institutions to provide these IT skills, especially in traditionally-disadvantaged populations.” 

With much of the world turning virtual during the COVID-19 pandemic, having access to the internet and working computer equipment has been more essential t...

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Team-building exercises may take a toll on employees if they're not voluntary

A new study conducted by researchers from the University of Sydney found that many employers’ efforts to build morale and boost feelings of camaraderie can actually hinder their workers’ performance

The findings suggest that the intention behind team-building activities can be lost when employees feel like they’re being forced to complete them. While these exercises can be helpful in bringing colleagues together, they can actually have the opposite effect when they’re mandatory.

“Since publishing our previous research on team-building exercises, many workers told us that they despise team building activities and see them as a waste of time, so we decided to look more in-depth at what’s behind this,” said researcher Dr. Petr Matous. 

Are there benefits?

The researchers were most interested in seeing what kinds of team-building activities were most beneficial to workers. They put the study participants through several self-disclosure sessions to gauge what they thought were effective and ineffective team-building strategies. 

“Almost every day at work, workers are subjected to interventions that are implicitly or explicitly designed to change our networks of working relationships,” said Dr. Matous. “Teams are formed, merged, and restructured, staff are relocated, and office spaces are redesigned. We are expected to participate in drinks after work and team building events. All this is done with the aim of improving workplace effectiveness, efficiency, collaboration, and cohesion -- but does any of this work?” 

Ultimately, the researchers learned that activities designed to build rapport among colleagues are hit or miss. The participants expressed the most frustration with these exercises when they felt forced to be involved. Many of these sessions feel inauthentic to employees, and several of the study participants reported feeling uncomfortable sharing so many personal details with their bosses and co-workers. 

This is important because when employees are consistently mandated to attend and participate in these events, it can impact how they feel about their jobs and hinder their overall job performance over time. 

“Many people do not want to be forced into having fun or making friends, especially not on top of their busy jobs or in stressful, dysfunctional environments where team building is typically being called for,” said researcher Dr. Julien Pollack. “These activities often feel implicitly mandatory. People can feel that management is being too nosy or trying to control their life too much.” 

How should companies approach this?

Though the researchers found that many team-building activities can be a source of stress or discomfort for employees, they also learned that not all exercises are the same, and there are beneficial ways to engage groups of employees. The biggest takeaway from this study is that employees want a choice; having the ability to opt out makes workers feel more in control, and giving employees the choice of who to work with in these activities can make them less uncomfortable. 

Team-building can be effective for employees and their bosses, and the researchers hope that more companies take these findings into consideration when it’s time to plan them. 

“With caution, many relational methods to improve teams and organizations can be borrowed from other fields,” said Dr. Matous. “The question is how to apply them effectively to strengthen an entire collective, which is more than just the sum of individual relationships, and that’s where analyzing methods using network science makes the main contribution.” 

A new study conducted by researchers from the University of Sydney found that many employers’ efforts to build morale and boost feelings of camaraderie can...

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U.K. Supreme Court rules drivers are not independent contractors

On Friday, the U.K.’s Supreme Court ruled that Uber drivers should be classified as workers who are entitled to legal rights and protections. 

Uber has long advocated for its workers to retain their classification as independent contractors, arguing that drivers have flexibility and therefore should not technically be considered employees. However, in his ruling, judge George Leggat concluded that Uber workers who log into the Uber app effectively enter a contract with the company to “perform driving services for Uber London.” 

“The employment tribunal was right to find that Uber drivers are workers who therefore qualify for the rights conferred on workers by employment legislation,” said Leggatt, reading a summary of the ruling on a court livestream.

The judges said that although drivers can choose their own hours, Uber runs its business in a way that results in drivers being “very tightly defined and controlled” by the ride-hailing firm. For example, Uber controls drivers by keeping track of their ratings and ensuring that their communications with passengers are kept to a minimum. 

“Drivers are in a position of subordination and dependency to Uber," the court said, adding that the only way they can boost their earnings is by “working longer hours while constantly meeting Uber's measures of performance.” 

Uber responds

Uber said it respected the court’s ruling that it acts as an employer, but it pointed out that it focused only on a small portion of drivers who used the Uber app in 2016. 

“Since then we have made some significant changes to our business, guided by drivers every step of the way,” Jamie Heywood, Uber’s Regional General Manager for Northern and Eastern Europe, said in a statement. “These include giving even more control over how they earn and providing new protections like free insurance in case of sickness or injury.”

The case will now return to the Employment Tribunal, where officials will decide how much compensation drivers are owed. 

Uber has historically pushed back against challenges to its classification of drivers. When a similar judgment was made in California, it ended up shelling out around $220 million in advertising to push through Proposition 22. Ultimately, Prop 22 rolled back the court ruling and an earlier California law called AB 5, which offered more protections to drivers. 

On Friday, the U.K.’s Supreme Court ruled that Uber drivers should be classified as workers who are entitled to legal rights and protections. Uber has...

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Democrats’ plan to raise minimum wage to $15 on hold for now

President Biden and congressional Democrats have been pushing for a $15 per hour minimum wage, but now the plan is facing obstacles in the Senate. 

During a marathon voting session on Thursday, Senate lawmakers gave their support to President Biden’s $1.9 trillion stimulus package while also approving a measure prohibiting an increase of the federal minimum wage during the COVID-19 pandemic. 

"A $15 federal minimum wage would be devastating for our hardest-hit small businesses at a time when they can least afford it," said Sen. Joni Ernst, a Republican from Iowa, who introduced the amendment.

Blocked for now

Some Democrats oppose the plan to raise the minimum wage, and several others have been noncommittal regarding their support. 

Sen. Bernie Sanders (I-Vt.), the chair of the Senate Budget Committee, strongly supports raising the minimum wage but says it should be done over time rather than all at once. Sanders said he intends to keep pushing for the implementation of a phased increase over five years rather than an immediate bump to $15 an hour during the pandemic. 

He plans to try to get the phased wage increase included in a budget reconciliation bill that would allow Biden’s stimulus plan to circumvent the Senate’s 60-vote filibuster rule.

“We need to end the crisis of starvation wages in Iowa and around the United States,” Sanders said, according to the New York Times. “At a time when half of our workers are living paycheck to paycheck, when millions of workers are earning starvation wages and when Congress has not voted to raise the minimum wage since 2007, I will do everything that I can to make sure that a $15-an-hour minimum wage is included in this reconciliation bill.” 

‘Not the last bill we’ll pass’

House Speaker Nancy Pelosi said she and fellow Democratic proponents of the plan won’t be deterred by any watering down it may receive in the $1.9 trillion relief bill. 

"It's not the last bill we'll pass,” Pelosi said. 

Sen. Joe Manchin (D-W.Va.) said he opposes a $15 minimum hourly wage and would not support an increase to $15. However, he said he would support something "responsible and reasonable.” 

Sen. Jon Tester (D-Mont.) said he’d also like to see changes made to the plan; Sen. Kyrsten Sinema (D-Ariz.) hasn’t commented on the push to raise the minimum wage.

President Biden and congressional Democrats have been pushing for a $15 per hour minimum wage, but now the plan is facing obstacles in the Senate. Duri...

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Biden directs OSHA to set COVID-19 workplace safety rules

President Biden has signed an executive order directing the Occupational Safety and Health Administration (OSHA) to issue guidance to employers on keeping workers from getting COVID-19 on the job.

Biden has signed a flurry of executive orders during his first days in office, most aimed at fighting the COVID-19 pandemic and its effects on Americans. 

Thursday’s order on Protecting Worker Health and Safety gives OSHA two weeks to provide employers with workplace safety guidance to help keep workers safe during the pandemic. OSHA will also have to determine whether any emergency requirements in the workplace -- such as mandates on masks, physical distancing, and ventilation standards -- are needed. 

In the order, Biden wrote that “ensuring the health and safety of workers is a national priority and a moral imperative.”

“I am calling for the enforcement of more stringent worker safety standards,” Biden said. “Healthcare workers and other essential workers, many of whom are people of color and immigrants, have put their lives on the line” during the pandemic.” 

If OSHA determines that an emergency rule is needed, the regulation should be issued no later than March 15. 

Federal law requires OSHA to conclude that “employees are exposed to grave danger” by a new hazard in order to justify establishing an emergency standard. While Trump was in office, OSHA provided only voluntary guidance to employers on how to equip workplaces in the COVID-19 era. 

President Biden has signed an executive order directing the Occupational Safety and Health Administration (OSHA) to issue guidance to employers on keeping...

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Instacart cuts its workforce by nearly 2,000, angering worker’s union

Despite being named to Fortune’s 2021 Best Workplaces list and raising $200 million in new funding only three months ago, Instacart has decided to cut about 1,900 jobs, including 10 employees who spearheaded the formation of a union, in favor of more contract workers.

The company said it’s moving towards a newer business model that provides its technology to retailers and lets their own workers prepare customers’ orders. Officials say the new path will be rocky at first but that it’s “doing everything we can to support in-store shoppers through this transition,” according to a statement sent to Bloomberg News. 

Instacart has put together severance packages and says it is doing its best to place the impacted workers in other positions within the company or, if necessary, working directly for retailers. At the end of the change-out, Instacart told Bloomberg that the change will still leave the company with thousands of shoppers classified as employees.

Union blasts company for eliminating jobs

Reacting to Instacart’s news, the United Food and Commercial Workers International Union (UFCW) condemned the company for eliminating the grocery workers “who have been vital to protecting food access for Americans during the pandemic.”

“All across the country, Instacart grocery workers have been bravely serving on the frontlines since the pandemic began, putting their own health at risk to ensure Americans have the food they need during this crisis,” the union said in a news release.

“Now, with COVID-19 outbreaks spiraling out of control, it is outrageous that Instacart would fire these courageous and hard-working men and women keeping our food supply secure. … Instacart firing the only unionized workers at the company and destroying the jobs of nearly 2,000 dedicated frontline workers in the middle of this public health crisis, is simply wrong.”

Despite being named to Fortune’s 2021 Best Workplaces list and raising $200 million in new funding only three months ago, Instacart has decided to cut abou...

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Trump administration releases rule on distinguishing gig workers from contractors

On Wednesday, the Trump administration released its final version of a rule that clarifies the difference between independent contractors and employees who can claim benefits. 

Under the finalized version of the rule, the Labor Department has made it more difficult for “gig-economy companies” to count workers as employees. The federal rule “respects the time-honored American tradition of being your own boss,” Deputy Secretary of Labor Patrick Pizzella said. 

The rule isn’t set to take effect until March 8, well after President-elect Joe Biden takes office. The Biden administration hasn’t said how it plans to handle the bill. Once inaugurated, Biden could decide to change the rule or choose not to defend it in the event that it’s challenged in court. 

Uber considers it a win

Over the years, Uber has strongly advocated to preserve workers’ independent contractor status. The ride-hailing firm has argued that flexible work is a key reason people choose to work for gig-economy companies. 

“Forcing a binary choice upon workers—to either be an employee with more benefits but with less flexibility, or an independent contractor with limited protections—is outdated,” Danielle Burr, Uber Technologies Inc.’s head of federal affairs, told the Wall Street Journal on Wednesday. “We appreciate the efforts made to modernize our nation’s laws.” 

But labor rights groups have already voiced opposition to the plan. The National Employment Law Project, a nonprofit labor rights group, called the rule a “narrowing” of the standards. 

“The rule gives license to employers to call most of their workers independent contractors,” said Catherine Ruckelshaus, general counsel at the National Employment Law Project. “That would dramatically narrow worker protections…in the jobs that particularly need them, including construction, agriculture, janitorial and delivery jobs.”

On Wednesday, the Trump administration released its final version of a rule that clarifies the difference between independent contractors and employees who...

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Making small talk with coworkers can help you achieve more as a team, study finds

Creating a positive environment at work is key to employees’ happiness and job performance, and now a new study conducted by researchers from the University of California at Santa Cruz has explored how coworkers can gain the most from simple small talk. 

According to their findings, making time for small talk between employees that’s unrelated from work-related business can lead to better outcomes in the workplace and also make employees enjoy their tasks more. 

“An average workday now is getting the team together into a virtual meeting, where there’s a very clear goal and task,” said researcher Andrew Guydish. “You’re not talking to coworkers at their desks or in the hall. Everything is structured, and everything is essentially a task nowadays. So this research highlights the importance of perhaps trying to institute moments throughout the day with unstructured chat time.” 

Creating reciprocity in conversations

To understand how the small talk can benefit workers, the researchers analyzed data from a U.C. Santa Cruz dataset known as the Artwalk Corpus. The source has transcripts from nearly 70 different art walks, which required someone in a lab to virtually instruct someone else walking around Santa Cruz on where to look for specific pieces of art to be photographed. 

The researchers were most interested in understanding how often the participants were talking strictly about the task at hand versus how often the conversation veered to unrelated topics. They learned that having reciprocity in interactions, which allows both parties to contribute equally to a conversation, is what yielded the best results. When small talk was balanced with task-related talk, participants reported enjoying the task more. 

This is important when thinking of work-related projects because usually one employee has a leading role over one or more other employees. This dynamic can create an imbalance in conversations when the designated leader speaks more than others. But by creating time to talk about things unrelated to the project, everyone involved can feel like their voice is heard, which makes the whole experience more enjoyable. 

When one voice tends to dominate all conversations, this can create an exclusionary environment that makes it more difficult for others to share or feel engaged. 

“To understand this, you could draw an analogy to a classroom,” explained researcher Jean Fox Tree. “Getting feedback from the class tells the professor how they should be explaining something, and that helps everyone in the class, not just the one who’s asking the question.” 

While the researchers believe that people tend to go into interactions with the best intentions, finding ways to get everyone involved in conversation -- especially about casual topics -- can yield the best results in the workplace. 

Creating a positive environment at work is key to employees’ happiness and job performance, and now a new study conducted by researchers from the Universit...

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Starbucks increasing barista pay by 10 percent

Starbucks, which recently reported better-than-expected quarterly earnings, is investing some of that revenue in its personnel. A corporate memo cited by Bloomberg News said the company is increasing pay for its front-line workers by 10 percent starting Dec. 14.

Bloomberg reports that it has seen a memo from Starbucks Executive Vice President Rossann Williams that increases pay by at least 10 percent for baristas, shift supervisors, and cafe attendants hired on or before Sept. 14.

The memo also said that starting pay for new employees will go up by 5 percent to help store managers attract and retain talent during the pandemic, when working conditions have become more challenging.

The company also said it will increase the extra amount above the minimum wage it pays employees in the U.S. markets where it has stores.

The pay raises come at a time when other retail and service sector businesses have faced difficulty hiring and retaining workers. Target raised its minimum wage to $15 an hour in July and gave employees who worked during the pandemic a $200 bonus at the end of that month.

The increase in payroll didn’t seem to hurt Target’s bottom line. The retailer this week reported same-store sales surged more than 20 percent in the third quarter.

In September, Walmart announced across-the-board pay hikes for its 165,000 hourly employees. It also announced the creation of new hourly and salaried leadership positions at its supercenters. 

Up to $30 an hour at Walmart

Pay for these new “team leader” positions range from $18 to $21 an hour, and some will pay up to $30 an hour. The new system will result in a boost in pay for tens of thousands of the company’s hourly workers, Walmart said.

Two years ago, Amazon raised its minimum wage to $15 an hour. The e-commerce giant said in a statement that the new minimum wage will benefit more than 250,000 full-time and part-time Amazon employees across the country, as well over 100,000 seasonal workers.

At the beginning of the pandemic, Starbucks authorized extra pay and benefits for employees affected by the health crisis, including sick pay, to encourage people who might be infected with the virus to stay home.

The improvement in hourly pay, long championed by organized labor, could remain in place once the pandemic passes. The state of Florida this year mandated a higher minimum wage and President-elect Joe Biden is on record supporting a $15 an hour minimum wage.

Starbucks, which recently reported better-than-expected quarterly earnings, is investing some of that revenue in its personnel. A corporate memo cited by B...

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Job interest isn't the only factor behind overall job satisfaction, study finds

A new study conducted by researchers from the University of Houston found that consumers’ interest in their jobs isn’t the biggest factor in their overall job satisfaction. 

They found that being interested in a role is important when it comes to how employees perform, but other factors like positive relations with colleagues and bosses are more important when it comes to feeling satisfied at work. 

“In popular guidance literature, it is widely assumed that interest fit is important for job satisfaction,” said researcher Kevin Hoff. “Our results show that people who are more interested in their jobs tend to be slightly more satisfied, but interest assessments are more useful for guiding people towards jobs in which they will perform better and make more money.” 

Finding the right fit

To understand how job interest plays a role in satisfaction, the researchers analyzed 105 related studies spanning from 1949 through 2016. After evaluating data from over 39,000 participants, the researchers learned that having interest in a position wasn’t the only thing that contributed to job satisfaction. 

The study revealed that several factors come into play when determining satisfaction at work, including the values of the company and having a good rapport with co-workers. The researchers learned that having a genuine interest in a job was more closely related to how well employees performed in their roles and any subsequent progress that they made in that role, including promotions and raises. 

“Our main finding was that interest fit significantly predicts satisfaction, but it’s not as strong of a relation as people expect,” Hoff said. “Other things that lead to satisfaction include the organization you work for, your supervisor, colleagues, and pay.” 

For those looking for a career change or those just entering into the workforce, it can be overwhelming to try to find the perfect fit. The researchers explained that many assessments tend to focus solely on job interest, but these findings highlight that several other factors can come into play. 

“To be satisfied with a job, you don’t have to worry too much about finding a perfect fit for your interests because we know other things matter, too,” said Hoff. “As long as it’s something you don’t hate doing, you may find yourself very satisfied if you have a good supervisor, like your coworkers, and are treated fairly by your organization.” 

A new study conducted by researchers from the University of Houston found that consumers’ interest in their jobs isn’t the biggest factor in their overall...

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Whole Foods executive says store managers could earn $100,000 per year without a college degree

Whole Foods CEO John Mackey says “wage transparency” is a key practice at Whole Foods. In an interview with CNBC Make It, Mackey said making sure employees know exactly what their colleagues are getting paid serves as motivation to climb the corporate ladder.

He said many companies “believe that [wage transparency] is going to stoke envy” and try to keep it hidden. Mackey said he thinks about it differently. 

The executive said an employee might think, ”‘Wow, I had no idea that a coordinator could get paid that much. I want to be a coordinator.’ Or, ‘I really want to be a store team leader, because I had no idea that including their RSUs — the restricted stock units they get from Amazon — I mean, they may be making well over $100,000.’” 

“And if you don’t have a college degree, that’s something to aspire to,” he added.

What store employees make

Here’s how much other Whole Foods employees make, according to the store’s website

  • Team members. Employees who work on the store floor, completing tasks like stocking shelves or preparing food, make an average of $30,000. 

  • Team leaders. Employees who head up a given section of the store and train new employees,  among other tasks, make around $57,000 per year. 

  • Associate team leaders. Assistants to team leaders make an average of $43,000 at Whole Foods.

  • Store managers. Store leaders make an average of $99,000 per year.

  • Associate store team leaders. Assistants to store managers make an average of $73,000 per year. 

Promoting authenticity

Mackey told Freakonomics Radio host Stephen Dubner that wage transparency incentivizes employees to do what it takes to get to the next level and offers the opportunity to challenge wages that they feel aren’t correct. 

Complaints sometimes result in a change; other times, the company gets a chance to highlight its values and explain why the pay is correct. 

“When you reveal a pay structure very transparently ... sometimes things aren’t just. And people will complain about it. And that gives you an opportunity to correct it,” Mackey said. “At other times, though, [the pay] is correct, and you can defend it. And then you’re pointing out to people what the organization most values and rewards.”

Whole Foods CEO John Mackey says “wage transparency” is a key practice at Whole Foods. In an interview with CNBC Make It, Mackey said making sure employees...

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California’s gig economy provision likely to pass, poll finds

California voters are set to decide Tuesday on the fate of Proposition 22, a bill that would leave gig workers as contractors by exempting gig-economy companies from a state law known as AB5. 

Under Prop 22, the benefits given to drivers for ride sharing companies like Uber and Lyft would be less than those afforded to employees under state law. Ride-hailing drivers would be left with minimum pay, health care subsidies, and accident insurance. Drivers would still have some benefits, and they would still be able to keep their flexibility.  

Uber, Lyft, and other companies that rely heavily on contractors have spent upwards of $200 million in support of Prop 22. Both companies have threatened to leave California altogether if they are forced to classify their drivers as employees.

Uber and Lyft recently lost an appeal in California after a judge ruled that the public’s interest is better served if the law goes into effect.

Likely to pass

Analysts say California’s Prop 22 is likely to pass. A poll of likely voters by UC Berkeley's Institute of Governmental Studies recently found an increase in support for the initiative; 46 percent of voters expressed support for the measure, up from 39 percent in September. 

If Prop 22 doesn’t garner enough support, Uber and Lyft have said they may have to raise prices for riders and reduce their number of workers in an effort to offset the cost of providing workers with more benefits. 

California voters are set to decide Tuesday on the fate of Proposition 22, a bill that would leave gig workers as contractors by exempting gig-economy comp...

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Lyft and Uber lose their driver classification appeal in California

Rideshare leaders Lyft and Uber must now classify their drivers as employees. A California Court of Appeals reaffirmed that decision on Thursday. 

The judges gaveled home their view that the public’s interest is better served if the damage is corrected rather than the companies -- and their shareholders -- protected.

“When violation of statutory workplace protections takes place on a massive scale, as alleged in this case, it causes public harm over and above the private financial interest of any given individual,” the appellate court said in its ruling, according to a report by the Sacramento Bee.

It ain’t over yet

The ruling is a setback to Uber and Lyft, which spent more than two years contending that the law does not apply to them. Both companies even went so far as to threaten to leave California altogether if they were forced to define their drivers as employees.

However, there are still a few more hoops for those companies to jump through before the dust finally settles. One is a ballot measure giving voters a say on the November 3 election day. The other is that the case will be sent back to the trial court. Before being reassigned to a court, the companies can go even further and appeal to the California Supreme Court.

Vote for us and set us free

It will be interesting to watch how many Californians jump through the election day hoop and side with Lyft and Uber. The two companies and their allies have reportedly spent nearly $200 million to curry the favor of voters on Proposition 22, a measure that would allow ridesharing and food delivery companies to classify their drivers as independent contractors. 

The pros and cons that Uber, Lyft, DoorDash, et al are pitching shake out like this:

  • The pros include that the measure would save rideshare and delivery services, plus hundreds of thousands of jobs. It would provide drivers new benefits, and guaranteed earnings. The advocacy groups behind the measure say it has the support of an overwhelming majority of drivers, community, public safety, and small business groups.

  • The cons on Prop 22 for Uber, Lyft, and DoorDash is that they can no longer write their own exemption to California law and profit from it. Plus, it would deny their drivers rights and safety protections they deserve: sick leave, healthcare and unemployment. The proposition’s naysayers say the companies will profit, but the exploited drivers will lose rights and protections. 

In recent polling conducted by the University of California - Berkeley, voters are swaying toward voting for the measure, but only by a smidge. The poll showed 39 percent of likely voters supporting it, 36 percent opposing it, and about 25 percent undecided.

Still facing serious headwinds

Of course, no news story these days would be complete without a reference to the pandemic, and this one is no different.

Ridesharing companies face quite a headwind, likely at the hands of consumers who have health safety concerns riding in a car that a person with COVID-19 could have been in earlier.

A CarGurus survey conducted early in the pandemic found an immediate sharp decline in the number of consumers planning to use a ride-sharing service. It found that 40 percent of consumers wanted to use rideshares less or not at all, while 49 percent said they would instead use their own vehicle.

Rideshare leaders Lyft and Uber must now classify their drivers as employees. A California Court of Appeals reaffirmed that decision on Thursday. The j...

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Target announces new round of employee bonuses

To thank its workers who have persevered during the COVID-19 pandemic, Target will be giving out $70 million in bonuses as the holiday shopping season gets underway. The retailer said Monday that more than 350,000 of its hourly employees will get a $200 bonus by early November. 

“In a year like no other, I’m proud of what this team has accomplished and grateful for the care and connection they’ve provided our guests and communities,” Melissa Kremer, Target’s chief HR officer, said in a release. “Target’s success this year is a direct result of our team members turning our purpose into action and meeting our guests’ changing needs day after day.”

This isn’t the first round of bonuses Target has distributed amid the pandemic. In April, the retailer gave 20,000 of its team leads bonuses ranging from $250 to $1,500. In July, the company gave all full-time and part-time hourly employees a $200 bonus. 

Combined with the bonuses announced Monday, Target said it will have spent almost $1 billion more this year on employee pay. In addition to bonuses, the retailer has also added pandemic-related benefits like backup child care and permanently bumped its starting wages to $15 an hour. 

Thanking frontline workers

A number of large retail chains announced that they would be giving out bonuses this year to thank workers for putting their health at risk. However, only Target and Lowe’s have announced that more bonuses are coming ahead of the holiday season. This month, Lowe’s doled out an additional $100 million in bonuses to hourly employees.

Health officials say this year’s holiday shopping season could potentially coincide with an increase in COVID-19 cases. The CDC has warned that cases could rise as temperatures drop and people spend more time inside and around other people. 

According to the latest figures compiled by Johns Hopkins University, the U.S. has reported the most COVID-19 cases of any country with over 8,160,000. 

To thank its workers who have persevered during the COVID-19 pandemic, Target will be giving out $70 million in bonuses as the holiday shopping season gets...

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Microsoft to allow some employees to work from home forever

Microsoft will be letting some of its employees work from home permanently, according to a report from The Verge. 

In a memo to employees, the company said it will shift to a “hybrid workplace” under which employees will have flexibility during and after the COVID-19 pandemic. 

“The COVID-19 pandemic has challenged all of us to think, live, and work in new ways,” said Kathleen Hogan, Microsoft’s chief people officer, in the company memo. “We will offer as much flexibility as possible to support individual workstyles, while balancing business needs, and ensuring we live our culture.”

Greater flexibility

Most of the company’s employees are still working from home, and now Microsoft says some employees will be given the option of relinquishing their assigned office space in order to work from home permanently. 

Some employees whose positions necessitate in-person duties will have to report to the office, but Microsoft said most employees will easily be able to spend less than 50 percent of their working week in the office.  

Facebook has also announced that it is letting thousands of employees switch to remote work permanently. CEO Mark Zuckerberg said in May that he anticipates that half of Facebook employees could be working remotely on a permanent basis within the next five to 10 years. 

Twitter and Square have also given employees the option to work from home forever. 

Microsoft will be letting some of its employees work from home permanently, according to a report from The Verge. In a memo to employees, the company s...

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JPMorgan Chase pledges $30 billion to close the racial income gap

JPMorgan Chase, one of the nation’s largest banks, has committed $30 billion over the next five years to narrow the racial divide when it comes to wealth. It says the spending will be targeted in underserved African American and Hispanic communities to help minority-owned businesses and increase jobs.

In announcing the project, the bank cited an existing racial wealth gap that it says has been made worse by the coronavirus (COVID-19) pandemic. Chase also says it will use its existing investments, along with its financial expertise, to provide support to minority-owned businesses that have been hard hit by the pandemic.

“Systemic racism is a tragic part of America’s history,” said Jamie Dimon, Chase’s chairman and CEO. “We can do more and do better to break down systems that have propagated racism and widespread economic inequality, especially for Black and Latinx people. It’s long past time that society addresses racial inequities in a more tangible, meaningful way.”

Improving housing options

Much of the money will be used to improve housing options for minorities. Over the next five years, Chase’s investments will include loans, equity, and direct funding to increase affordable housing in underserved communities. That could consist of an estimated 40,000 home purchases using $8 billion in mortgage funding from Chase.

The bank also plans to help 20,000 minority households lower their mortgage payments by allocating $4 billion in mortgage funds for refinancing at lower rates. During the 2008 financial crisis, minority homeowners were saddled with a disproportionate number of subprime mortgages that led to a wave of foreclosures. 

Chase says renters will also benefit. The bank plans to finance 100,000 new affordable rental units, providing $14 billion in loans and equity investments in underserved communities.

Help for businesses

To support minority business development, Chase said it will provide an additional 15,000 loans to small businesses in underserved communities, allocating up to $2 billion. The program will provide assistance to minority entrepreneurs in the form of coaching, technical assistance, and funding.

To promote sound financial habits, Chase said it has set a goal of helping 1 million people open low-cost checking or savings accounts. To support that effort, Chase has committed to hiring 150 new community managers and opening new community center branches in underserved communities.

Marc Morial, president of the National Urban League, praised the bank’s initiative, saying it “will  bolster the well-being of families across the country, as well as our collective economy.”

JPMorgan Chase, one of the nation’s largest banks, has committed $30 billion over the next five years to narrow the racial divide when it comes to wealth....

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Uber, Lyft sponsoring California ballot measure seeking to overturn labor law

Uber and Lyft are putting nearly $100 million toward a November California ballot that would weaken a state labor law requiring each company to classify their drivers as employees. 

Reuters’ calculations show that the $100 million the ride-hailing services are pouring into the initiative is significantly less than the sum of the annual payroll taxes and workers’ compensation costs Uber and Lyft would have to pay in compliance with the new law. 

The publication said it calculated that each full-time driver would cost the company an additional $7,700 on average under compliance with the law. 

“That includes roughly $4,560 in annual employer-based California and federal payroll taxes and some $3,140 in annual workers’ compensation insurance, which is mandated in California,” Reuters said. 

Arguing against converting gig workers

Uber and Lyft have said classifying drivers as employees rather than gig workers would cause them to have to raise prices to help pay the additional costs of supporting drivers. That, in turn, would cause a drop in consumer demand.

The companies are now reportedly sponsoring a new measure under which independent contractors would receive some of the benefits they would receive if classified as employees. 

Uber and Lyft have argued that drivers are appropriately classified as gig workers because they have the ability to set their own schedules. The firms have claimed that the majority of their drivers value their flexibility and don’t want to be employees. However, many drivers have said they have been forced to take on other jobs in order to supplement their income. 

Uber and Lyft are putting nearly $100 million toward a November California ballot that would weaken a state labor law requiring each company to classify th...

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Seattle approves law to ensure Uber, Lyft drivers make minimum wage

Under a new law approved by Seattle’s City Council, Uber and Lyft will be forced to pay their drivers a minimum wage of at least $0.56 per minute and $1.33 per mile driven when there’s a passenger in the vehicle. 

The new law, which is set to go into effect in January, will help to ensure that drivers in Seattle earn the city’s minimum wage of $16.39. The minimum wage requirement assumes that drivers will spend about half their time waiting for ride requests or driving to pick up passengers. 

“The pandemic has exposed the fault lines in our systems of worker protections, leaving many frontline workers like gig workers without a safety net,” said Mayor Jenny Durkan in a statement.

Seattle’s new law will also require Uber and Lyft to give all tips to drivers and not have those tips counted toward the minimum wage. Drivers must also be reimbursed for any gear they had to purchase for health and safety purposes, like masks and other protective equipment. 

Uber, Lyft oppose the policy

The new law was passed unanimously by city officials with a vote of 9-0. It was based on a similar law passed in New York in 2018, which implemented new pay rules and put a limit on the number of ride-hailing cars from services like Uber and Lyft that can be on city streets. 

California has also pushed for better pay and protections for Uber and Lyft drivers by requiring the companies to classify their drivers as employees rather than gig workers. However, the ride-sharing companies have argued that such laws could actually lead to job losses and increased rates for consumers.  

"The City's plan is deeply flawed and will actually destroy jobs for thousands of people -- as many as 4,000 drivers on Lyft alone -- and drive ride-share companies out of Seattle," Lyft said in a statement.

In a letter to the Seattle City Council, Uber contended that the policy would have a negative impact on drivers. 

"Uber may have to make changes in Seattle because of this new law, but the real harm here will not be to Uber," Uber said. "It is the drivers who cannot work and the community members unable to complete essential travel that stand to lose because of the ordinance."

Under a new law approved by Seattle’s City Council, Uber and Lyft will be forced to pay their drivers a minimum wage of at least $0.56 per minute and $1.33...

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Disney to lay off 28,000 employees due to coronavirus impact

Due to the impact of COVID-19, Disney has announced that it is making the “difficult” decision to lay off 28,000 employees. The lay-offs will mainly affect those working at the company’s U.S. theme parks, but the company will also lay off some employees working at its consumer products division. 

Josh D’Amaro, head of parks at Disney, said the COVID-19 pandemic has led to months of theme park closures. The closures have led to billions of dollars in operating income loss during the second and third quarters. 

While Disney’s Florida parks have reopened with new safety measures, Disneyland in California remains shut down. D’Amaro said California’s unwillingness to lift restrictions that would allow Disneyland to reopen has only made Disney’s problems worse. 

"We have made the very difficult decision to begin the process of reducing our workforce at our Parks, Experiences and Products segment at all levels," D'Amaro said in a statement. 

Toll of the outbreak

D’Amaro noted that the open parks are operating under limited visitor capacity. Unfortunately, there is still uncertainty about how long the pandemic will last. 

“For the last several months, our management team has worked tirelessly to avoid having to separate anyone from the company,” D’Amaro said in a memo to employees on Tuesday. “We’ve cut expenses, suspended capital projects, furloughed our cast members while still paying benefits, and modified our operations to run as efficiently as possible, however, we simply cannot responsibly stay fully staffed while operating at such limited capacity.”

In the memo, D’Amaro called the decision to lay off employees “heartbreaking” but said that it was the “only feasible option we have in light of the prolonged impact of COVID-19 on our business.”

Disney’s parks in Shanghai, Hong Kong, Tokyo, and Paris aren’t affected by the announcement.

Due to the impact of COVID-19, Disney has announced that it is making the “difficult” decision to lay off 28,000 employees. The lay-offs will mainly affect...

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Anxiety about job security and finances have increased during the pandemic

Since the start of the COVID-19 pandemic, stress and anxiety have been at an all-time high for consumers and their families. And while there are plenty of reasons to feel anxious during these uncertain times, a new study is looking at one of the major sources of stress that has emerged since the start of the pandemic. 

According to researchers from the University of Connecticut, the pandemic has led to an increase in anxiety around job and financial security -- particularly for those who have remained employed since the start of COVID-19. 

“We definitely are seeing, within our employed participants, higher rates of anxiety than in individuals who indicated they were not employed,” said researcher Natalie J. Shook. “Controlling for demographics, controlling for income level, and also taking into account participant health and concerns about COVID -- and the extent to which people were engaged in social distancing or quarantine -- we are seeing that job security and financial concerns are the significant predictors associated with anxiety and depression.” 

Monitoring anxiety levels

The study findings are part of an ongoing survey to understand how consumers’ attitudes, behaviors, and feelings have changed since the start of the pandemic. Roughly 1,000 participants are involved in the project, and they are routinely surveyed about a variety of different topics. For this study in particular, the surveys focused on the things that have been the most anxiety-inducing since the start of the pandemic. Researchers also asked participants specific questions about their jobs and finances. 

The researchers identified links between those who were feeling the greatest stress about finances and job security with those who were experiencing symptoms associated with anxiety and depression. Based on responses to the surveys, the pandemic has specifically made participants’ question the viability of their positions at work and their financial status. Because there is so much uncertainty, it’s hard for consumers to plan for the future or predict what the next year will bring in terms of employment and finances, which is ultimately what leads to the increase in anxiety and depression. 

While it can be difficult to cope with stress and anxiety, the researchers think there is an opportunity for employers to step up and ease some of the mental burden consumers are facing during these challenging times. 

“Based on these findings, for those experiencing depressive symptoms during the pandemic, it may be particularly important for employers to be mindful and try to minimize feelings of uncertainty for the employees, as well as instilling hope or agency in employees,” the researchers explained. “For those experiencing anxiety symptoms, employers could attempt to reduce financial concerns by allowing employees to continue to work (e.g. telework), even with reduced hours and income, to ensure that employees do not lose their entire income.” 

Since the start of the COVID-19 pandemic, stress and anxiety have been at an all-time high for consumers and their families. And while there are plenty of...

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Target pledges to prioritize recruitment of Black employees

Target has pledged to increase its number of Black employees by 20 percent over the next three years in an effort to combat racial inequality. 

In a news release, the retailer said it intends to focus on hiring Black employees and encouraging their advancement in the company. The company also said it will also be conducting anti-racist trainings for leaders and team members, as well as developing programs to increase diversity in areas like technology, merchandising and marketing -- areas with low levels of Black representation. 

Target says it’s already made progress in boosting diversity across its workforce, noting that more than half of its stores are run by women and a third are managed by people of color.

“Inclusivity is a deeply rooted value at Target and we’ve had an ambitious diversity and inclusion strategy for many years for our guests and team,” chief human resources officer Melissa Kremer said in a news release. “We know that having a diverse workforce and inclusive environment not only creates a stronger team, but also provides the perspectives we need to create the products, services, experiences and messages our guests expect.”

Prioritizing racial equality

Protests stemming from the killing of George Floyd at the hands of Minneapolis police earlier this year have put pressure on companies to look at their diversity and inclusion practices. Black Americans still remain under-represented in many career areas. 

Walmart has also announced new initiatives in support of racial equity. Over the next five years, the retailer will be putting $100 million toward creating a new center on racial equity. 

“The goal of the center will be to address systemic racism in society head-on and accelerate change,” Walmart CEO Doug McMillon said in a June announcement. 

McMillon said his company also intends to increase recruitment and support for people of color.

Target has pledged to increase its number of Black employees by 20 percent over the next three years in an effort to combat racial inequality. In a new...

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Being aggressive and cutthroat doesn't get you ahead in your career, study finds

Staying motivated at work is crucial for employees’ long-term career success, but having the right attitude is also key for both personal and employment-related advances. 

Now, researchers from the University of California at Berkeley have found that being aggressive at work doesn’t always lead to the best results. According to their findings, being more aggressive at work at the expense of others can hurt both personal and professional outcomes. 

“I was surprised by the consistency of the findings,” said researcher Cameron Anderson. “No matter the individual or the context, disagreeableness did not give people an advantage in the competition for power -- even in more cutthroat, ‘dog-eat-dog’ organizational cultures.” 

Finding the right attitude

To understand how consumers’ attitudes can affect their career gains, the researchers surveyed groups of undergraduate and graduate students in the business world to gauge their personalities. The researchers then tracked their professional growth over more than 10 years and also surveyed the participants’ coworkers to better understand how they were viewed in the office environment. 

Like Anderson explained, being selfish and trying to get ahead wasn’t effective in attaining professional growth. Those who were kinder and more generous were more likely to gain more prestigious roles in their companies at a faster pace. 

The researchers fear that more aggressive personality types can hinder both personal and professional accomplishments. Though those who were more selfish were able to succeed professionally, coworkers were less likely to think favorably of them, which can harm their personal relationships. 

Moving forward, the researchers hope that those in the highest positions of power take these findings into consideration so they can be more selective about who gets promoted and improve workplace dynamics. 

“The bad news here is that organizations do place disagreeable individuals in charge just as often as agreeable people,” said Anderson. “In other words, they allow jerks to gain power at the same rate as anyone else, even though jerks in power can do serious damage to the organization.” 

Staying motivated at work is crucial for employees’ long-term career success, but having the right attitude is also key for both personal and employment-re...

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Bed Bath & Beyond to lay off 2,800 workers as part of restructuring plan

Bed Bath & Beyond is continuing its restructuring efforts by eliminating thousands of positions at corporate headquarters and across its retail businesses. 

In a press release, the company announced that it was reducing its workforce by 2,800 roles, effective immediately. Company officials say the move will help it save up to $350 million over the next two-to-three years as it tries to reorganize and become more profitable during the COVID-19 pandemic. 

“Saying goodbye to colleagues and friends is incredibly difficult, but this component of our comprehensive restructuring program is critical to rebuild the foundation of our business, construct a modern, balanced and durable business model, and meet the structural shift in customer shopping and service preferences that we have seen accelerate as a result of COVID-19,” said Bed Bath & Beyond CEO Mark Tritton. 

Trending towards success?

Tritton goes on to say that reducing the company’s workforce will help simplify its operations and help it emerge as a stronger competitor when the pandemic is finally over. He points to “significant progress” that the company has already made in 2020 as a sign of good things to come. 

“As we work to re-establish our authority in Home, Baby, Beauty and Wellness, we are encouraged by the strong customer response to new services such as BOPIS and Curbside Pickup, and the continued strength in our digital channels as we improve the curation of our product assortment, enhance the ease and convenience of the shopping experience, and make it easier to feel at home," he said.

Despite Tritton’s rosy outlook, Bed Bath & Beyond’s recent actions show just how much the retailer has been struggling in the current retail landscape. Last month, the company closed 200 stores after sales plunged by 48 percent. At the time, Tritton told CNBC that company officials saw many stores that were “dragging us down.”

Bed Bath & Beyond is continuing its restructuring efforts by eliminating thousands of positions at corporate headquarters and across its retail businesses....

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Uber, Lyft avoid service shutdown in California

Uber and Lyft won’t be halting ride-hailing services in California after all.

Last week, the ride-hailing giants threatened to suspend service in the state in response to a law (Assembly Bill 5) that would require the companies to immediately reclassify their drivers as employees. Uber CEO Dara Khosrowshahi said that if a ruling requiring the reclassification went into effect Friday morning, it would be “hard to believe we’ll be able to switch our model to full-time employment quickly.” 

Fortunately for Uber and Lyft, the California Court of Appeals reconsidered on Thursday, just hours before the shutdown was slated to go into effect. Thanks to the reprieve, the companies will be allowed to continue treating their drivers as independent contractors, at least until October. 

"Our rideshare operations can continue uninterrupted, for now," Lyft said in a blog post. "Thanks to the tens of thousands of drivers, riders, and public officials who urged California to keep rideshare available for so many people who depend on it."

"While we won't have to suspend operations tonight, we do need to continue fighting for independence plus benefits for drivers," said Lyft spokeswoman Julie Wood.

Uber said in a statement that it’s “glad that the Court of Appeals recognized the important questions raised in this case, and that access to these critical services won’t be cut off while we continue to advocate for drivers’ ability to work with the freedom they want.”

An appeal is currently working its way through the court. Oral arguments in the case are set to take place on October 13.

Need for protections

Lyft and Uber have both said there’s a need for an alternative way to classify drivers that combines flexibility and benefits. Uber CEO Dara Khosrowshahi recently proposed that gig workers be granted some protections without losing their flexibility.  

“Our current employment system is outdated and unfair,” he wrote in an op-ed for the New York Times. “It forces every worker to choose between being an employee with more benefits but less flexibility, or an independent contractor with more flexibility but almost no safety net,” he said. “Uber is ready, right now, to pay more to give drivers new benefits and protections.”

He proposed having gig companies set up benefits funds from which employees pull money from for needs like health insurance or paid time off. The amount of money they could take out of the fund would depend on how many hours they’ve worked. 

Uber and Lyft won’t be halting ride-hailing services in California after all.Last week, the ride-hailing giants threatened to suspend service in the st...

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Employees tell pollsters they prefer the COVID-19 at-home workplace

Over the last four months, millions of Americans have been working from home. Anecdotal evidence has indicated that the virtual workplace has worked pretty well so far.

There’s new data suggesting that, from the employees’ point of view, the experience has been overwhelmingly positive. A survey by KPMG, a business advisory firm, found that 79 percent of U.S. workers at organizations with more than 1,000 employees believe the quality of their work has improved over the last four months.

Seventy percent said the quality of their work has improved while 67 percent indicate their work-life balance has gotten better. Eighty-four percent are also satisfied with their employer's response to the pandemic.

"American workers have demonstrated remarkable resiliency under the pressures of COVID-19 and against the backdrop of events signifying racial inequality," said Lisa Massman, KPMG's human capital advisory leader. 

A big unknown

The virtual workplace was one big unknown when the corporate world was thrust into it in late March, almost overnight. But productivity technology, such as services offered by Zoom and Slack, has enabled co-workers to interact with managers and one another almost as though they were in the same office.

The survey found that employees like the system so well that 55 percent would like to have the flexibility to continue working remotely at least part of the time. One byproduct also appears to be a boost in morale that is aiding employee retention. 

More than three-quarters of remote workers expressed the desire to remain with their current organization, in part because management has made them feel valued during the lockdown. As a result, KPMG believes corporations may be in no hurry to bring employees back to the office once the pandemic finally ends.

"Companies worldwide enabled remote workforces nearly overnight, and what started as an extraordinary pilot is now considered permanent in many organizations' operating models," said Joe Parente, KPMG's Consulting leader. "As a result, there should be a new focus on improving employee connectivity, better understanding of what drives positive worker experiences and overall, reshaping and rethinking how work gets done."

Room for improvement

Even though employees are happier, employers are more focused on efficiency and making sure that work gets done at the same rate as before. Massman says that may require some bold thinking.

"Organizations must design a new model of work for tomorrow, by presenting new approaches for teams to effectively work from home, leveraging technology and innovative ways to increase collaboration, and fostering an environment of inclusion and belonging - to build a more loyal, productive and sustainable workforce," she said.

Over the last four months, millions of Americans have been working from home. Anecdotal evidence has indicated that the virtual workplace has worked pretty...

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Uber and Lyft say they may have to suspend California service over new state law

Earlier this week, a California judge ruled that Uber and Lyft must reclassify their workers as employees in order to comply with the state’s new Gig Economy Law. Now, the companies say they might have to temporarily pull out of the state if efforts to appeal the ruling aren’t successful. 

“If the court doesn’t reconsider, then in California, it’s hard to believe we’ll be able to switch our model to full-time employment quickly,” Uber CEO Dara Khosrowshai told MSNBC. 

He said the company might have to shut down in the state until at least November, when Proposition 22 -- an initiative supported by Uber, Lyft, and Doordash with $110 million in funding from gig companies -- is set to be voted on. Prop 22 would enable ride-sharing companies to continue classifying drivers as contractors. 

Against employee classification

Just a few days ago, Khosrowshahi wrote in an op-ed for the New York Times that drivers deserved more benefits under an employment classification that falls somewhere between contractor and employee. 

“Our current employment system is outdated and unfair. It forces every worker to choose between being an employee with more benefits but less flexibility, or an independent contractor with more flexibility but almost no safety net,” he said. “Uber is ready, right now, to pay more to give drivers new benefits and protections.”

Khosrowshahi advocated for what he called a “third way” to classify drivers that would give them some protections without compromising their flexibility. 

“I’m proposing that gig economy companies be required to establish benefits funds which give workers cash that they can use for the benefits they want, like health insurance or paid time off. Independent workers in any state that passes this law could take money out for every hour of work they put in. All gig companies would be required to participate, so that workers can build up benefits even if they switch between apps,” the executive suggested. 

Ride-sharing service Lyft echoed its rival’s sentiments, suggesting that California’s new labor law may keep it from doing business. “If our efforts here are not successful it would force us to suspend operations in California,” Lyft President John Zimmer said on an earnings call. 

Earlier this week, a California judge ruled that Uber and Lyft must reclassify their workers as employees in order to comply with the state’s new Gig Econo...

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California judge orders Uber, Lyft to classify drivers as employees

On Monday, a California judge ordered Uber and Lyft to classify their workers as employees rather than independent contractors. Superior Court Judge Ethan Schulman said the order will bring the ride-hailing companies in line with California’s new Gig Economy Law, provided it makes it through the appeals process. 

The judge said Lyft and Uber's contract drivers should be extended the same protections and benefits that the companies’ full-time employees, such as tech workers, receive.

"Were this reasoning to be accepted, the rapidly expanding majority of industries that rely heavily on technology could with impunity deprive legions of workers of the basic protections afforded to employees by state labor and employment laws," Schulman wrote.

Reclassifying drivers

Uber CEO Dara Khosrowshahi is currently fighting a lawsuit filed in May by California Attorney General Xavier Becerra which claims that Uber is illegally withholding crucial benefits from its workers by classifying them as contractors rather than employees. 

Becerra said the judge's preliminary order was a victory for drivers. 

"The court has weighed in and agreed: Uber and Lyft need to put a stop to unlawful misclassification of their drivers while our litigation continues," Becerra said in a statement. "Our state and workers shouldn't have to foot the bill when big businesses try to skip out on their responsibilities. We're going to keep working to make sure Uber and Lyft play by the rules."

Uber CEO fighting the state law

On Monday, Khosrowshahi wrote an op-ed published in the New York Times that outlines a potential “third way” to classify gig workers. He proposed having gig companies establish a benefits fund that contractors could use for needs like paid time off or health insurance. The amount of money they could take out of the fund would depend on how many hours they’ve worked. 

Khowrowshahi says this plan would enable contractors to keep their flexibility but receive crucial benefits formerly extended only to employees. 

“I’m proposing that gig economy companies be required to establish benefits funds which give workers cash that they can use for the benefits they want, like health insurance or paid time off. Independent workers in any state that passes this law could take money out for every hour of work they put in. All gig companies would be required to participate, so that workers can build up benefits even if they switch between apps,” Khosrowshahi wrote. 

On Monday, a California judge ordered Uber and Lyft to classify their workers as employees rather than independent contractors. Superior Court Judge Ethan...

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Uber CEO proposes ‘third way’ for companies to classify gig workers to provide more benefits

In an op-ed published Monday in the New York Times, Uber CEO Dara Khosrowshahi described a possible “third way” to classify gig workers. 

As lawmakers push to have ride-hailing drivers reclassified as employees, Khosrowshahi has argued that drivers are appropriately classified as independent contractors. In the op-ed, he detailed a proposal that he previously discussed with President Trump before the CARES Act was signed. 

Khosrowshahi said he thinks Trump and Congress should update labor laws to preserve the flexibility of contract work while extending certain protections to these workers. 

Combining flexibility and benefits

The Uber executive is currently fighting a lawsuit from California Attorney General Xavier Becerra which claims that Uber is withholding crucial benefits from its workers by classifying them as contractors rather than employees. The lawsuit alleges that Uber is breaking the state’s new law. 

But Khosrowshahi is refuting the claim that workers are unfairly classified as contractors and argues that drivers should be given an option that combines flexibility and benefits.

“Our current employment system is outdated and unfair,” he wrote. “It forces every worker to choose between being an employee with more benefits but less flexibility, or an independent contractor with more flexibility but almost no safety net. Uber is ready, right now, to pay more to give drivers new benefits and protections. But America needs to change the status quo to protect all workers, not just one type of work.” 

Benefits fund

He suggests that all gig companies be required to set up a benefits fund that can be used by workers for needs like paid time off or health insurance. The amount of money they could take out of the fund would depend on how many hours they’ve worked. 

“I’m proposing that gig economy companies be required to establish benefits funds which give workers cash that they can use for the benefits they want, like health insurance or paid time off. Independent workers in any state that passes this law could take money out for every hour of work they put in. All gig companies would be required to participate, so that workers can build up benefits even if they switch between apps,” Khosrowshahi suggested. 

He also believes gig companies should offer medical and disability coverage to help workers if they get injured on the job. He says they currently can’t offer these benefits “without risking their independent status under the law.” 

“During this moment of crisis, I fundamentally believe platforms like Uber can fuel an economic recovery by quickly giving people flexible work to get back on their feet,” Khosrowshahi wrote. “But this opportunity will be lost if we ignore the obvious lessons of the pandemic and fail to ensure independent workers have a stronger safety net.”

In an op-ed published Monday in the New York Times, Uber CEO Dara Khosrowshahi described a possible “third way” to classify gig workers. As lawmakers p...

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Consumers should focus on their workspace and habits while working from home, experts say

With many consumers now working from home for the long haul in the midst of the COVID-19 pandemic, a new study is highlighting some best practices to make the most of this time at home. 

According to experts from the University of Cincinnati, finding the right chair, putting the computer at the right angle, and taking breaks to walk away from the designated work space are all key for consumers currently working from home. Consumers’ home setups may not allow for the same kind of room or flexibility that their traditional offices offer, but they can still tweak their home arrangements to best work for them while also minimizing the risk of shoulder, back, or neck injuries. 

“The body doesn’t like static postures continually,” said researcher Dr. Kermit Davis. “You don’t want to do all sitting or all standing all the time. You want to alter your position and change it up throughout the day.” 

Making the most of the home set-up

Davis and his team wanted to look at how consumers were creating their work-from-home set-ups, so they surveyed nearly 850 faculty members at the University of Cincinnati after quarantine orders had begun in the area. To accompany the surveys, over 40 employees also sent in pictures of what their work stations looked like at home. 

Based on the photos and survey responses, Dr. Davis says that there are several improvements that consumers should be making to their work-from-home spaces. His main areas of concern were tied to computer monitors/laptops, chairs, and armrests. 

From an ergonomic perspective, the study found that over 50 percent of the survey participants were setting up their computer screens at an angle that’s too low. To optimize comfort and also prevent straining, the researchers recommend propping up the monitor, laptop, or keyboard on a stack of books. 

When it comes to chairs, over 40 percent were found to be too low to the ground. It’s certainly not necessary to spend a ton of money on revamping an entire workspace, but placing a pillow on top of the chair or pulling it closer to the desk can work to ease some of the back pain that could crop up. 

Back support was an issue for many of the participants in the study. Over 70 percent of respondents reported having no lumbar support, while just under 70 percent reported not using their chair’s back support at all. Putting a towel or cushion on the back of the chair can help alleviate some of that stress and promote better posture while sitting in front of a screen all day. 

When it comes to armrests, the researchers were concerned that many participants were using them incorrectly. Having armrests at the wrong angle can cause pain and discomfort, and nearly 20 percent of the participants had incorrectly arranged arm rests. The researchers recommend putting something soft around the armrests to avoid some of this discomfort. 

Getting up more frequently during the day

It can be difficult for consumers to create an ideal set-up in their homes to work from for the large majority of the day. However, one of the biggest things the researchers recommend is not staying in one spot for too long.

Standing desks are encouraged, as they offer flexibility in the home space and give consumers freedom to move around throughout the workday. 

Consumers can see a full rundown of Davis’ suggestions by checking out the full study here

With many consumers now working from home for the long haul in the midst of the COVID-19 pandemic, a new study is highlighting some best practices to make...

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Interviews for jobs in tech focus less on skill and more on ability to handle stress

Job interviews can be nerve wracking and stressful for many consumers. However, a new study is assessing how some employers may be honing in on candidates’ nerves and stress. 

According to researchers from North Carolina State University, interviews for jobs in tech are often set up to give employers a feel for how well a candidate can perform under pressure -- not how skilled the candidate is in the field. 

Candidates are often required to complete a technical interview in which they walk the interviewer through their thought process to solve a particular coding issue. However, the researchers explained that not only does this not measure a candidate’s skill, but it’s unrealistic in terms of job expectations. However, it still remains as one of the deciding factors in the interview. 

“Technical interviews are feared and hated in the industry, and it turns out that these interview techniques may be hurting the industry’s ability to find and hire skilled software engineers,” said researcher Chris Parnin. “Our study suggests that a lot of well-qualified job candidates are being eliminated because they’re not used to working on a whiteboard in front of an audience.” 

Putting on the pressure 

The researchers conducted an experiment using the technical interview format to understand how it affects job applicants and hiring outcomes. 

They had nearly 50 undergraduate and graduate computer science students participate in the study, with half performing a public technical interview and the other half solving the same problem but in private. Those who completed the problem solving step alone didn’t have to talk the interviewer through their thought process and didn’t have the pressure of the interviewer watching their every move. 

Ultimately, those who could problem solve alone outperformed those who had to complete the problem while explaining themselves to the interviewer. The study revealed that those who completed the problem privately were twice as likely to have better results than those who solved the problem publicly. 

“In short, the findings suggest that companies are missing out on really good programmers because those programmers aren’t good at writing on a whiteboard and explaining their work out loud while coding,” said researcher Parnin. 

Missing out on qualified candidates

The researchers are concerned by these findings for a few reasons. 

For starters, the conditions aren’t similar to what a coder would experience on the job, so candidates spend their time worrying about how they’ll perform in front of a potential boss rather than thinking about what they’d actually bring to the position that’s relevant. The researchers say qualified candidates are often dismissed and are wrongfully missing out on these positions. 

“If the tech sector can address all of these challenges in a meaningful way, it will make significant progress in becoming more fair and inclusive,” said researcher Mahnaz Behroozi. “More to the point, the sector will be drawing from a larger and more diverse talent pool, which would contribute to better work.” 

Job interviews can be nerve wracking and stressful for many consumers. However, a new study is assessing how some employers may be honing in on candidates’...

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Mothers' work performance has suffered during the pandemic, study finds

Recent studies have highlighted how the COVID-19 pandemic has heightened stress for mothers at home with their job and little ones. Now, researchers from Washington University are exploring how mothers’ job performance has been affected. 

According to the study, mothers’ work performance has taken a hit since the start of the pandemic -- more so than fathers’. The researchers found this to be true even in situations where both mothers and fathers worked from home. 

“Our findings indicate mothers are bearing the brunt of the pandemic and may face long-term employment penalties as a consequence,” said researcher Caitlyn Collins. “Even among households in which both parents are able to work from home and are directly exposed to childcare and housework demands, mothers are scaling back to meet these responsibilities to a greater extent than fathers. 

“Ultimately, our analyses reveal that gender inequality in parents’ work has worsened during the pandemic,” she said. 

Mothers are making more sacrifices

To understand how job and household responsibilities have been divided between couples during the pandemic, the researchers analyzed data from a U.S. labor survey and the U.S. Current Population Survey. The study included information from February through April. 

Statistics from the beginning of the study revealed that fathers had increased their workload around the house in the early part of the pandemic. However, this didn’t hold up over the long term. 

By the last month of the study, fathers were working a regular 40-hour workweek on average while mothers had lost about two hours off their weekly working total. The biggest concern here is that women will face the consequences of this loss of work, whether it’s by missing out on a raise or promotion, or by losing their job entirely. 

“Scaling back work is part of a downward spiral that often leads to labor force exits -- especially in cases where employers are inflexible with schedules or penalize employees unable to meet work expectations in the face of growing care demands,” said Collins. 

The researchers identified mothers with young children -- those in elementary school or even younger -- to be most affected by this, but the researchers are unclear why this trend has emerged. As many states are now considering a potential return to school come the fall, it’s more important than ever for couples to prioritize balance when it comes to household responsibilities. 

“Flexibility is key right now,” Collins said. “By easing work demands and allowing flexibility where possible in the coming months, employers can prevent long-term losses in women’s labor force participation. And fathers should be encouraged to provide more hours of care for their children, even if it means sacrificing paid work hours to do so.” 

Recent studies have highlighted how the COVID-19 pandemic has heightened stress for mothers at home with their job and little ones. Now, researchers from W...

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Shipt workers plan walk-out protest for July 15

Shipt workers are planning to walk out on July 15 in protest of a controversial new pay model at the company. 

Workers for the grocery delivery service say the new algorithm-based pay structure, internally dubbed “V2,” would shave at least 30 percent off their total pay. The new model replaces Shipt’s previous flat-fee model.

“The company replaced our transparent, fairer pay with a shady algorithm. Workers saw their pay plummet,” a group of Shipt shoppers wrote in a Medium post. 

“This seismic company shift is occurring at the same time that its shoppers — essential workers taking unprecedented risks during this pandemic — are already suffering significantly.” 

Business is booming for Shipt

The workers pointed out that Shipt, a service where customers pay a monthly fee in exchange for the ability to receive deliveries from grocery stores and retailers, is concurrently “experiencing obscene increases in its sales” amid the coronavirus pandemic. 

“This isn’t a company that has to cut pay because its core business crashed. The company has intentionally over-hired, preying off the millions of displaced workers who were furloughed or laid off during a pandemic,” the Medium post continued. 

“Shipt’s intention all along was to introduce the pay cut when it had more workers than it needed. That way it is still able to roll profitably forward even if a sizable percentage of Shipt’s existing workforce is forced to quit due to drastic cuts to our pay.” 

Workers plan to walk out Wednesday, the day the new pay model launches in a dozen new markets. Shipt maintains that it's “committed to helping shoppers succeed” and is open to feedback on the new pay model. 

“Our commitment to shoppers is stronger than ever, and any operational changes we make balance the interests of shoppers with the longer-term needs of the business,” Shipt said.

Shipt workers are planning to walk out on July 15 in protest of a controversial new pay model at the company. Workers for the grocery delivery service...

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Nearly half of Americans are unemployed, government report shows

The employment situation in the post-coronavirus (COVID-19) world increasingly remains a puzzle as some businesses reopen and rehire their workers, but the jobless rate remains at record highs.

The economy actually added jobs in May, taking most economists by surprise. But a new report from the Bureau of Labor Statistics puts that in perspective: nearly half the U.S. population didn’t have a job in May.

The employment-population ratio, which is the percentage of adults in the U.S. population who are employed, fell to a record low of 52.8 percent. If you do the math, that means nearly 48 percent of working-age adults are unemployed.

As a point of reference, the employment-population ratio was 61.2 percent at the start of the year.

Economists say the employment-population ratio is a truer indicator of the health of the labor market because it counts the people who could be working but, for one reason or another, are not looking for a job. The monthly employment report only counts those who are looking for a job.

Torsten Slok, the chief economist at Deutsche Bank. told CNBC that the U.S. would need to create 30 million jobs to bring the employment-population ratio back to January levels. June’s employment report is expected toward the end of the week.

Extra $600 payments about to end

Americans receiving an extra $600 a week in unemployment benefits, provided by the CARES Act, will face a significant drop in income at the end of July. The extra money will run out at that time unless Congress votes to extend it.

In many states, people drawing unemployment benefits have received $600 a week in addition to whatever benefit the states provide. In some cases, recipients have earned more not working than they did when they had a job.

The additional benefit will be paid for the week ending on or before July 31. Congressional Democrats have approved an extension of the additional jobless benefit, included in the House’s $3 trillion relief bill.

Senate Republicans have voiced objections to that measure, so the outlook for final passage in the Senate is far from certain.

The employment situation in the post-coronavirus (COVID-19) world increasingly remains a puzzle as some businesses reopen and rehire their workers, but the...

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Some employees feel guilty about taking a lunch break despite federal rules

Though many consumers are working from home during the COVID-19 pandemic, researchers from Staffordshire University are exploring the psychology behind employees taking their lunch breaks. 

They learned that many employees skip out on their daily break time for any number of reasons. While staying busy and productive does come into play, the researchers also found that some employees feel self-conscious about taking breaks if their colleagues aren’t doing the same. 

“The legally required minimum time for a lunch break at work is 20 minutes, however there is a growing trend nationally for large numbers of people not to take breaks at work, with surveys reporting that between 66 percent and 82 percent of workers don’t always take their breaks,” said researcher Dr. Mike Oliver. 

“So, how have we got to the point where some people feel guilty about taking their legally allowable break? We were curious to look at the psychological and social behaviours of office workers to understand the enablers and barriers.” 

Why are breaks disappearing?

To better understand the culture behind taking or skipping lunch breaks, the researchers conducted several focus groups, each with nearly 30 office employees in the U.K. 

The researchers learned through interviews that there’s more to the debate than many may realize. Several different components come into play when employees are deciding to step away from their work for part of the day; however, a common theme emerged: having co-workers’ support in taking a break led employees to put work down for lunch. 

“We found that one of the best ways to make sure that you take breaks is to take them with your work colleagues, or to be encouraged to take them by your boss,” said Dr. Oliver. “If they are not physically near you, we may find it harder to act on these social prompts.” 

However, the researchers also learned that co-workers’ decisions can have an adverse effect. Just as co-workers can help encourage each other to take a break for lunch, many of the employees noted that the opposite was also true -- they were less likely to take a break if their co-workers weren’t taking that time. 

Issue of productivity

The study also revealed that many employees prioritize their work over taking a break, and this typically stems from nerves over what to do when lunch time happens. Many workers want to take the time to themselves but don’t want to appear as though they’re not productive or valuable employees. 

These findings are troubling to the researchers for several reasons. Not only can sitting at a desk for extended periods of time be troublesome for consumers’ health, but having time throughout the day to talk or think about things outside of work is a respite that all employees need. 

“This paper highlights the complex relationships that people have with taking breaks, with others and their physical environment,” said Dr. Oliver. “Some participants did not recognize the importance of taking a break in the middle of the day, but others appeared to convince themselves that by doing a less intense work activity, such as responding to emails, whilst eating lunch at their desk, would actually be taking a break.” 

“There is mounting concern about the amount of time people spend sitting down at work and not being physically active, so it is really important that people don’t put work ahead of breaks and their own physical and psychological health.”  

Though many consumers are working from home during the COVID-19 pandemic, researchers from Staffordshire University are exploring the psychology behind emp...

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Supreme Court rules LGBTQ workers can’t be discriminated against

In a landmark ruling on Monday, the U.S. Supreme Court voted to make it illegal for gay, lesbian, and transgender workers to be discriminated against.

The Trump administration previously argued that Title VII of the Civil Rights Act, under which discrimination based on sex is illegal, didn’t apply to claims of gender identity and sexual orientation.

By a vote of 6-3, the court ruled that the federal law does cover sexual orientation and transgender status. The ruling represents a victory for millions of LGBTQ workers and advocates nationwide. 

Landmark case

The historic ruling was written by President Trump's first Supreme Court appointee, Justice Neil Gorsuch. Comprising the rest of the majority was Chief Justice John Roberts and the court's four liberal justices.

"An employer who fires an individual for being homosexual or transgender fires that person for traits or actions it would not have questioned in members of a different sex. Sex plays a necessary and undisguisable role in the decision, exactly what Title VII forbids," Gorsuch wrote.

"There is simply no escaping the role intent plays here: Just as sex is necessarily a but-for cause when an employer discriminates against homosexual or transgender employees, an employer who discriminates on these grounds inescapably intends to rely on sex in its decisionmaking," the opinion read.

Presumptive Democratic presidential nominee Joe Biden celebrated the ruling, saying the court “confirmed the simple but profoundly American idea that every human being should be treated with respect and dignity. That everyone should be able to live openly, proudly, as their true selves without fear.” 

Major LGBTQ victory

Gay rights advocates said the ruling was a long-awaited and overdue victory.

“The Supreme Court’s clarification that it’s unlawful to fire people because they’re LGBTQ is the result of decades of advocates fighting for our rights," said James Esseks, director of the American Civil Liberties Union's Lesbian Gay Bisexual Transgender & HIV Project. "The court has caught up to the majority of our country, which already knows that discriminating against LGBTQ people is both unfair and against the law.”

House Speaker Nancy Pelosi (D-Calif.) called the ruling "a victory for the LGBTQ community, for our democracy and for our fundamental values of equality and justice for all."

In a release published by the Human Rights Campaign, Gerald Bostock -- one of the petitioners who claims he was fired from his job as a child welfare services coordinator after joining a gay softball team -- said there were “no words to describe just how elated I am.”

“Today, we can go to work without the fear of being fired for who we are and who we love," Bostock said. "Yet, there is more work to be done. Discrimination has no place in this world, and I will not rest until we have equal rights for all.”

In a landmark ruling on Monday, the U.S. Supreme Court voted to make it illegal for gay, lesbian, and transgender workers to be discriminated against.T...

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Starbucks to allow employees to wear apparel supporting Black Lives Matter movement

After initially barring its employees from wearing Black Lives Matter attire, Starbucks has changed course and decided to allow team members to wear clothes with the message. 

On Friday, the coffee chain announced that not only would it be lifting the restriction, but that it would make 250,000 shirts supporting the movement. 

Starbucks told employees in a memo last week they would not be permitted to wear clothing or accessories that mentioned the Black Lives Matter movement out of concern that it could be misconstrued and increase the risk of confrontation. 

The company just recently penned a new memo to employees that read, "we've heard you want to show your support, so just be you. Wear your BLM pin or t-shirt."

"We are so proud of your passionate support of our common humanity," Friday's statement said. "We trust you to do what's right while never forgetting Starbucks is a welcoming third place where all are treated with dignity and respect."

Supporting Black Lives Matter movement

In the new memo, titled “Standing together against racial injustice,” Starbucks said it would be designing new t-shirts to “demonstrate our allyship and show we stand together in unity.” 

Until these shirts arrive, company executives encouraged employees to express their support of the movement through apparel of their own. 

“These are alarming, uncertain times and people everywhere are hurting,” the company said. “You’ve told us you need a way to express yourself at work, asking: ‘Do you understand how I feel!? Do you understand the black community is in pain?’” 

“We see you. We hear you. Black Lives Matter. That is a fact and will never change,” the company said. 

After initially barring its employees from wearing Black Lives Matter attire, Starbucks has changed course and decided to allow team members to wear clothe...

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California regulator says Uber, Lyft workers are employees

​Uber and Lyft workers have been deemed employees under California’s new gig worker law. 

The decision, made by the California Public Utilities Commission (CPUC) on Thursday, comes in the wake of a debate between the ride-hailing companies and their workers over whether drivers should be classified as independent contractors or employees who receive benefits.

In its order, the CPUC said state law currently says that drivers for transportation network companies (TNCs) will be considered employees going forward.

"For now, TNC drivers are presumed to be employees and the Commission must ensure that TNCs comply with those requirements that are applicable to the employees of an entity subject to the Commission's jurisdiction," the commission said.

Debate over classification

In previous years, Uber and Lyft have argued that their drivers should be classified as independent contractors since they have the flexibility to set their own hours. The companies said most of their workers would prefer to be classified as such in order to preserve the “on-demand” nature of the job. 

“If California regulators force rideshare companies to change their business model it would affect our ability to provide reliable and affordable services, along with threatening access to this essential work Californians depend on,” Uber said in a statement.

In a statement of its own, Lyft called the CPUC’s decision “flawed” and said classifying drivers as employees will have a devastating economic impact on the state of California.

Lack of basic protections as contractors

Labor unions and drivers who rely on their job as a sole source of income have argued that the lack of benefits makes it difficult to afford necessary expenses. 

Last June, workers held a rally outside of Uber’s headquarters in San Francisco to support a new California legislation (Assembly Bill 5) under which they would be considered employees and would receive basic protections.

“We’re here for ourselves, our rights, that’s been taken from us by Uber and Lyft. We’re asking for a living wage and we’re asking for benefits,” longtime Uber and Lyft driver Omar A. said at Tuesday’s rally, according to CBS SF Bay Area. “They are trying to force the drivers to sign a petition against AB 5. Actually AB 5 is supporting the drivers and protecting the drivers. That’s what we’re fighting for.”

In December, Uber sued to block AB5, arguing that it was unconstitutional and that it punished app-based platforms. In May, California filed a lawsuit against Uber and Lyft and charged that the companies’ misclassification of their drivers violated the new legislation. 

​Uber and Lyft workers have been deemed employees under California’s new gig worker law. The decision, made by the California Public Utilities Commissi...

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Dunkin’ to hire up to 25,000 workers as businesses reopen across the U.S.

With Americans starting to emerge from the pandemic and jumping back in line at stores and restaurants, Dunkin’ franchisees are on a hiring binge. 

Word came from Dunkin’ HQ on Monday that up to 25,000 new restaurant employees will be hired at U.S. locations. Jobs will include everything from front-counter to restaurant management.

New education perks for employees

While Dunkin’ -- or any fast-food chain for that matter -- is not out of the COVID-19 woods yet, its foot traffic is picking up. Still, unemployment is at a runaway pace, and the company wants to be ready when normalcy returns.

It may also be sensing that students might be looking to get their degree online because colleges are unsure about how on-campus education will play out this fall.

To that end, Dunkin’ is beginning a new partnership with Southern New Hampshire University (SNHU) to offer an online college education to franchise employees. This is similar to what Chipotle, UPS, and Walmart have offered. Thanks to an aggressive marketing effort, SNHU has become a big-time player in online education, with over 135,000 students online and on campus.

“Dunkin’ is committed to keeping America running and working. We are proud to support our franchisees who offer much-needed job opportunities, in a welcoming environment where people can feel appreciated and rewarded for serving both customers and their communities during this critical time,” said Stephanie Lilak, Dunkin’ Brands’ Senior Vice President and Chief Human Resources Officer. 

“With the brand’s new partnership with SNHU, new advertising campaign, and in-store safety measures, our franchisees are providing both new and current restaurant employees a great workplace, and the chance to gain experiences and skills that will benefit them throughout their lives.”

With Americans starting to emerge from the pandemic and jumping back in line at stores and restaurants, Dunkin’ franchisees are on a hiring binge. Word...

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Twitter announces long-term work-from-home policy

In an email to employees on Tuesday, Twitter CEO Jack Dorsey said his company’s team members will have the option of working from home indefinitely, according to BuzzFeed News

Dorsey said it was unlikely that offices will open back up before September -- but even after the worst of the pandemic is over, employees can remain at home. 

“Opening offices will be our decision,” a company spokesperson said. “When and if our employees come back, will be theirs.”

Dorsey noted that Twitter was one of the first companies to move to a work-from-home model when the health crisis began unfolding. He said the company will “continue to put the safety of our people and communities first.”

Working from home forever

Given that COVID-19 mitigation efforts are still active and the virus is continuing to spread, Twitter has cancelled all in-person events for the remainder of the year. Twitter officials said they will assess plans for 2021 events later this year.

The company also increased its allowance for work-from-home supplies to $1,000 for all employees. Twitter said the past two months have proven that it’s possible for remote workers to thrive and produce quality work.

“The past few months have proven we can make that work,” a spokesperson said. “So if our employees are in a role and situation that enables them to work from home and they want to continue to do so forever, we will make that happen. If not, our offices will be their warm and welcoming selves, with some additional precautions, when we feel it’s safe to return.”

In an email to employees on Tuesday, Twitter CEO Jack Dorsey said his company’s team members will have the option of working from home indefinitely, accord...

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CVS, other retailers, are hiring more workers

Huge layoffs have accompanied the outbreak of the coronavirus (COVID-19) and more are expected, but at least some employers are increasing their payrolls.

Last week, Amazon announced it would try to hire 100,000 additional employees to help with the crush of orders. At the same time, Walmart has announced it will hire 150,000 additional temporary workers to help in its stores that have remained crowded, as have other supermarket chains like Publix.

Now, CVS Health says it will hire 50,000 full- and part-time employees on a temporary basis as pharmacies remain open during the health crisis.

The jobs include store associates, home delivery drivers, distribution center employees, and member/customer service professionals. To maintain social distancing during the hiring effort, CVS will use a technology-enabled hiring process to hold virtual job fairs, virtual interviews, and virtual job tryouts. 

Taking on laid-off workers

The company said it expects many of the jobs will be filled by existing CVS Health clients who have had to furlough workers, including Hilton and Marriott.

For existing employees, CVS says the company will help employees with both child and elder or adult dependent care needs. It’s partnering with the Bright Horizons network of in-home and center-based daycare providers, giving employees up to 25 fully covered days of backup care. 

That benefit will be available early next month for both full- and part-time employees. The company has always had paid sick leave for full-time employees and now is offering 14-day paid leave for employees who test positive for COVID-19 or need to be quarantined as a result of potential exposure.

Employee bonuses

CVS is also paying bonuses to employees who are required to be at CVS facilities to assist patients and customers. Bonuses will range from $150 to $500 and will be awarded to pharmacists and certain other health care professionals on the frontlines, store associates and managers, and other site-based hourly employees.

"Our colleagues have demonstrated an extraordinary commitment to providing essential goods and services at a time when they're needed most," said Larry J. Merlo, CEO, CVS Health. "As they continue to be there for the individuals and families we serve, we're taking extra steps to provide some peace of mind and help them navigate these uncertain times."

Huge layoffs have accompanied the outbreak of the coronavirus (COVID-19) and more are expected, but at least some employers are increasing their payrolls....

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Job insecurity can bring out the worst in consumers' personalities

While the goal for most employees is to feel secure in their work, a new study conducted by researchers for RMIT University found that job insecurity can negatively impact consumers’ personalities. 

The study revealed that feeling uneasy about a job can manifest itself in negative personality traits like laziness and emotional instability. 

“Traditionally, we’ve thought about the short-term consequences of job insecurity -- that it hurts your well-being, physical health, sense of self-esteem,” said researcher Dr. Lena Wang. “But now we are looking at how that actually changes who you are as a person over time, a long-term consequence that you may not even be aware of.” 

Personality differences

The researchers looked at data from the Household, Income and Labour Dynamics in Australia (HILDA) survey to better understand how consumers’ feelings towards their jobs can affect their personalities. Over 1,000 survey respondents answered questions that gave insight into their personalities, as well as their attitudes about their current place of employment. 

Ultimately, the researchers learned that job insecurity can affect how consumers perform at work, how they interact with others, and their personalities overall. 

The study found that despite fears around losing their jobs, participants were more likely to pull back from their job responsibilities and complete fewer tasks. Job insecurity was associated with less effort at work and less productivity. 

From a personal standpoint, the researchers learned that participants were more likely to react poorly to stressors and incite conflict with others during periods of job insecurity. 

Support from employers

Dr. Wang explained that job insecurity is a legitimate fear in many cases. However, she also explained that consumers often feel fear about losing their jobs when there’s no chance of that happening. 

To help ease tensions, the researchers urge employers to be a source of comfort to employees. This team says bosses should be proactive in helping to settle work-related anxieties. 

“Some people simply feel daunted by the changing nature of their roles or fear they’ll be replaced by automation,” said Dr. Wang. “But while some existing jobs can be replaced by automation, new jobs will be created. Some employers have the ability to reduce that perception, for example by investing in professional development, skills and training, or by giving career guidance.”  

While the goal for most employees is to feel secure in their work, a new study conducted by researchers for RMIT University found that job insecurity can n...

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Job candidates need to be mindful of their social media presence

A new study conducted by researchers from Penn State found yet another way social media can come into play for prospective job candidates. 

The findings revealed that employers are not only looking at social media before hiring a new employee, but posts that appear too opinionated or self-absorbed could cost consumers a job. 

“In 2018, 70 percent of employers reported looking at social media sites to help them evaluate potential employees, and almost that many -- 60 percent -- eliminated candidates on the basis of negative content,” said researcher Michael Tews. “It’s important for job candidates to be aware of how they portray themselves in social media.” 

Posts to avoid

The researchers had nearly 500 hiring managers participate in the study. Each of them evaluated a job candidate’s responses to an in-person interview; afterwards, they reviewed the hypothetical candidate’s social media posts. 

When it came time to look over candidates’ social media, the participants were shown one of 16 different social media profiles. The profiles showed a wide variety of posts, with the primary focus being on alcohol and drug use, strong opinions, and self-absorption. Ultimately, the researchers found that hiring managers were more likely to reject job candidates based on their social media presence, particularly when taking into consideration those three categories. 

While posts with alcohol or drug use cost some candidates a job, this proved to be the most acceptable posting category for job prospects. Though Tews explained that the posts involved in this study were “benign” when it came to substance use, he also mentioned that hiring managers may “perceive the content as relatively normal.” 

When it came to being perceived as self-absorbed or opinionated, potential job candidates were often dismissed. 

Tews explained that posting opinions that could be “divisive” may make prospective employees seem “more argumentative and less cooperative,” whereas those posting solely about themselves could be perceived as “less likely to sacrifice for the benefit of other employees and the organization.” 

Social media as networking

Though many consumers on the job hunt may be worried about everything they’ve ever posted, Tews is of the mindset that social media can be used for the greater good, especially when it comes to the job market. 

While he believes that job candidates should certainly do a once-over of their online profiles before going to an interview, he also believes that employers should be clearer about what posts are and aren’t acceptable for their corporation to make the process easier on applicants.  

“From the employer perspective, hiring managers should be trained on how best to use social networking content in making selection decisions,” said Tews. “To maximize the benefit of using social networking content for selection purposes, organizations should set guidelines for what content is relevant and should be examined, specify what content is irrelevant and potentially discriminatory and develop standardized rating systems to make the evaluation process more objective.” 

A new study conducted by researchers from Penn State found yet another way social media can come into play for prospective job candidates. The findings...

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Taco Bell to offer $100,000 salaries to attract managers

Have you ever sat back and dreamed of landing a job that allowed you to earn six figures? Did those dreams ever include you working at Taco Bell? 

The fast food company announced today several initiatives that it has planned for 2020 to support its employees and create a more sustainable business model. Within its plan, Taco Bells says it plans to test a $100,000 annual salary for managers of company-owned restaurants in certain markets. All corporate-owned restaurant employees will also be offered 24 hours of paid sick time moving forward.

“Through these initiatives, Taco Bell aims to enhance restaurant performance, employee satisfaction and support recruitment and retention,” the company stated.

“As Taco Bell expands its footprint, our responsibility to drive positive impact increases. Our business growth in the last decade has positioned us to create change for good and implement creative solutions for our planet, our people and our food. We’re excited to shake things up and make 2020 even more about what matters most: our purpose.”

Going green

In addition to its new incentives for employees, Taco Bell said that it will be looking to become more eco-conscious in the new year. 

The brand has set a goal of making all of its consumer-facing packaging recyclable, compostable, or reusable by 2025. It will also be adding recycling and/or composting bins to all restaurants worldwide by that time and seeking to remove certain chemicals like PFAS, phthalates, and BPA from packaging materials by that time.

“As a leader in the quick-service restaurant industry, Taco Bell is proud of the work it has done to date and the opportunities ahead for its planet, people and food,” the company said. “The brand will provide updates on progress throughout the year as it introduces sustainable packaging to restaurants, continues investing in its people and develops new vegetarian options for fans.”

Have you ever sat back and dreamed of landing a job that allowed you to earn six figures? Did those dreams ever include you working at Taco Bell? The f...

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Gig operators protest new California law stating that drivers are employees, not contractors

If someone walks like an employee and talks like an employee, then aren’t they an employee? California says yes.

A new law in California (Assembly Bill 5 [AB 5]), which makes it more difficult for companies to hire workers as contractors, is getting pushback from gig economy businesses like food courier service Postmates and rideshare operators Uber and Lyft. These companies want things to stay as they were before 2020 rolled in, primarily for the cost savings on things like health insurance, which contractors weren’t entitled to.

Food couriers and ride share companies aren’t the only ones raising a ruckus. In November 2019, the California Trucking Association went to bat for some 70,000 truck drivers in the state, filing a suit that challenged the law. A federal judge recently agreed that the law doesn't apply when it comes to independent truck drivers. 

Other independent contractor types are also exempt from AB 5 -- medical and dental doctors, insurance agents, accountants, and others who generally work directly with customers and set their own prices. 

Winners and losers

When AB 5 was being debated on the California Assembly floor, Assemblywoman Lorena Gonzalez said in no uncertain words that gig companies are reaping the benefits of contract labor and the laborers are getting zilch.

"The same week that workers had to go on strike because their per mileage fee was being cut, an investor was celebrating his $30,000 investment that became $120 million in one day," she said, pointing to the fact that it was the investors, not the drivers, who profited when Lyft went public. 

"Something is wrong with the way that we have allowed these companies to operate. It's time to level the playing field. It's time to be honest with workers. It's time to be honest with companies.” 

A larger section of people who live and die by the gig economy are parents who need the extra income to support their families.  

"With this job, I have the freedom to work when I have time," Alfonso Martinez, who drives for Uber in the Sacramento area, told NPR. In Martinez’ situation, his Uber gig gives him a chance to provide for his school-aged children who have special needs.

Fight to the finish?

With California taking the lead on this issue -- as it does with many other things regarding consumer privacy -- other states and municipalities are likely to take notice. However, it could take some time to find a resolution that makes both companies and contractors feel like they’re getting a win-win.

Uber operates in 600 cities and has nearly 4 million drivers; having to cough up money to pay for the kinds of benefits a normal employee would make would turn their revenue stream from black to red in a heartbeat. So, what does a company in Uber’s situation do vis-a-vis a law like AB 5? It files a lawsuit. Uber and Postmates