Experts in Making HR Your Competitive Edge Employer Trends, Risks & Opportunities for 2015 By Mark W. Wilbur Pres. & CEO

Since Nationwide Reach - CA Expertise Providing Critical Employer & HR Services –Unlimited Live Helpline & Core Member Services –Award Winning Training & Development –Compensation Surveys & Research –Strategic Employer Services –Employment Law Advocacy & Leadership Experts in Making HR Your Competitive Edge

Introduction Trends & Risks –Local Minimum Wage Initiatives –Paid Sick Leave –Double Pay for Holidays –ACA: US Supreme Court Decision King vs. Burwell Opportunities –Compensation Strategies –Employee Engagement

Minimum Wage Initiatives Several CA Cities raised the minimum wage for 2015 –San Francisco, Oakland, Richmond, San Jose City of Los Angeles is considering raising to $15.25/hr by 2019 Nearly 50% increase first 3 yrs, 70% in 5yrs Independent Beacon Economics Study (3/15) –Negative impact to both LA and neighboring cities –Cut projected job growth by at least half

Minimum Wage Initiatives The City of Los Angeles' Economic Development Committee will hold four hearings across the city to gather input on these minimum wages proposals. Schedule of hearings: Tuesday, March 24,1 p.m., Los Angeles City Hall, 200 N. Spring St. Thursday, March 26, 6 p.m., Watts Labor Community Action Committee, South Central Ave. Tuesday, March 31, 6 p.m., Van Nuys City Hall, Sylvan St. Thursday, April 2, 6 p.m., Museum of Tolerance, 9786 West Pico Blvd.

Paid Sick Leave California passed new paid sick leave law for 2015 Employers are required to accrue paid sick time effective July 1, 2015 Up to 24 hours annually with a minimum of 1 hour for every 30 hours worked Employers are already required to provide notice (effective January 1, 2015) President Obama proposing a national paid sick leave initiative

Double Pay for Holidays? Proposed New legislation introduced in California (AB 67) –Thanksgiving & Christmas Double pay for major holidays Same legislator authored California’s paid sick leave law Lots of issues to resolve, but passed first committee vote. –Other major holidays? –Christian holiday versus other religions?

Possible ACA Impact US Supreme Court set to decide King v. Burwell Decision could have major implications for ACA insured across the country GOP proposed 2015 budget defunds for Affordable Care Act Congress poised for budget fight with the White House

Opportunities Hottest Trends in HR for Performance Compensation Strategies Employee Engagement

Compensation Strategies US and CA economy has turned around –Employers are hiring, but competing for talent –Retention is now an issue, loyalty is low Compensation strategies now critical Total rewards applies to all size companies –Employee benefits a battlefield in recruiting –Corporate responsibility making an impact –Many benefits can be low/no cost add-in’s Engagement & Communication planning and execution critical for employee understanding and valuing

Employee Engagement Does your company measure employee engagement?

2013 and 2014 Gallup polls found that 52% of all full-time workers in America are disengaged - aren't involved, enthusiastic or committed to their work. Another 18% are "actively disengaged," meaning they have gone beyond checking out mentally, and work to undermine production, service and performance goals. 70% Disengaged - leaving just 30% of American workers engaged, who feel excited about their jobs and future! Gallup estimated that actively disengaged workers cost the U.S. $450 - $550 billion a year, due to high absenteeism, presenteeism, turnover, quality-control issues, theft and lost productivity. Reality Check! Employee Engagement

Dale Carnegie 2014 study, companies with engaged employees outperform those without by 202%! –Including measureable increases in both customer satisfaction and loyalty When an engaged employee believes in a company and its mission, their: –Productivity skyrockets –Tasks are completed in a timely manner and with a sense of ownership –Initiative and ownership of their current work and new projects increases –Attention to detail becomes greater –Issues are identified and resolved sooner

Experts in Making HR Your Competitive Edge Thank You!