Gen Zers want more training opportunities: According to new research from Udemy, a workforce training platform, based on responses from more than 6,500 multigenerational workers, 65% of Gen Z are highly motivated by professional development, besting millennials and Gen X. The rise of generative AI has caused Gen Z to get serious about upskilling, underscoring their professional drive. Unlike prior generations, the survey revealed that Gen Z places a high value on learning new skills, particularly those tied to career growth and job security. That focus presents a significant opportunity for HR leaders to create more personalized and engaging learning and development programs. The relationship between Gen Z and AI has its complexities. On the one hand, 7 in 10 respondents to the survey expressed interest in AI-driven, personalized learning experiences. Meanwhile, nearly half said they were skeptical of the effectiveness of AI, with widespread concerns about accuracy and bias. While AI is important to more than one-third of Gen Z workers, Udemy found that soft skills are equally critical to the group. In fact, more than 8 in 10 respondents identified skills like communication and critical thinking as essential to their professional success. Source: Worklife 10/10/24
Employees are not happy: Four out of five employees in a new global workplace well-being survey say they are not thriving at work. More than half of those surveyed say they are struggling with stress, aren’t happy with their jobs, and don’t feel their work has purpose. The prevalence of these sentiments among employees is concerning, says Mark Royal, a Korn Ferry senior client partner specializing in employee engagement. “It is getting worse instead of better,” he says. A separate survey by LinkedIn on workforce confidence found that 56% of US professionals are dissatisfied with the money they make. Not coincidentally, that figure aligns with the 57% of employees who say they are dissatisfied with their jobs overall. Though it may seem counterintuitive, more transparency around pay practices and decisions will lead to more satisfaction among employees, says Tom McMullen, a leader in the North America Total Rewards expertise group at Korn Ferry. “More transparency generally leads to higher levels of trust, because workers feel they are being treated fairly,” he says. Source: Korn Ferry 10/21/24
Update to California’s paid family leave: On September 29, 2024, Governor Newson signed into law Assembly Bill (AB) 2123 to make further changes to the PFL program. The law now prohibits employers from requiring an employee to use up to two weeks of earned but unused vacation before they can receive PFL benefits. This new prohibition applies to any period of disability commencing on or after January 1, 2025. However, the option for employees to voluntarily use their vacation time remains available. Employees may prefer to use their vacation and receive 100% wage replacement, as opposed to the lower percentage they would receive under PFL. Practically speaking, employees may do this less beginning January 1, 2025, as they will be eligible for 70-90% wage replacement (previously 60-70%) under the PFL program. Employers may still allow employees to use their vacation, sick, paid time off, or other leave along with PFL benefits to enable employees to receive up to 100% pay. Source: Vorys Sater Seymour and Pease LLP 10/15/24
Are 401K accounts subject to bankruptcy proceedings? No, according to the U.S. 3rd Circuit Court of Appeals. Eric Gilbert filed for Chapter 7 bankruptcy, listing his interest in retirement accounts worth approximately $1.7 million. The issue was whether these accounts could be accessed by creditors due to alleged violations of federal law governing retirement plans. The Bankruptcy Court ruled that the accounts were protected from creditors, and the District Court affirmed this decision. The U.S. 3rd Circuit Court of Appeals affirmed. The court held that the retirement accounts were excluded from the bankruptcy estate under § 541(c)(2) because ERISA's anti-alienation provision was enforceable, even if the accounts did not comply with ERISA and the IRC. Source: In re: Gilbert, No. 23-2944 (3d Cir. 2024)
European views on AI in HR: Littler's seventh annual European Employer Survey Report revealed that 72% of companies are now using AI in at least one HR function, much higher than the 60% in the previous year. Littler noted that the expanding role of AI in HR not only offers opportunities to streamline processes, but also introduces compliance and workforce challenges. Over half (53%) of HR executives and business leaders surveyed expressed concern about complying with data protection and information security laws when using AI in their HR functions. Additionally, 38% of respondents are worried about AI's potential impact on job displacement, reflecting worldwide job insecurity concerns stemming from the emerging technology. Generative AI, which has boomed since its introduction last year, also presents risks for employers, according to the report. Despite the potential advantages of these tools, only 53% of respondents felt confident that their employees were not misusing such tools. Policies guiding employees on how to use GenAI can help, but only 29% of organizations have implemented policies governing their use, according to the report. Source: HR Director 10/11/24