Manufacturing labor shortages persist: Despite increases in revenue and employee productivity, U.S. manufacturers are reporting recruitment and retention challenges heading into the final quarter of 2024, according to an Oct. 3 report from UKG. For instance, 76% of manufacturers reported year-over-year revenue increases, and 58% reported head count growth, yet 61% said they’re struggling to fill critical labor gaps.  In a survey of more than 300 HR leaders in manufacturing, nearly 70% said labor shortages impact their ability to meet production demands, and 40% said production delays occur at least once per week. To improve retention, 71% of manufacturers said their front-line employees receive the same benefits as corporate employees, which include training and development opportunities (59%), advancement opportunities (59%), paid time off (58%), predictable work schedules (54%), and employee wellness programs (53%). However, 73% of manufacturers said they’re struggling to provide a key benefit that front-line workers want – greater flexibility.   Source: HR Dive 10/8/24

Switching jobs has a negative impact on retirement savings: Switching jobs can boost your pay and prospects. It can also drag on retirement savings.  The majority of people who change jobs wind up putting less of their pay into their 401(k)s, often without realizing it, according to new research from Vanguard Group. That is because many job switchers either forget to sign up for the 401(k) plan or get auto-enrolled at a lower savings rate.  Over a four-decade career, that can mean as much as $300,000 less in retirement wealth for someone with average pay, Vanguard found. The savings rate of the median job switcher in the Vanguard study drops by nearly a percentage point, despite a 10% raise. Some also save less because of pay cuts or life changes. Because the typical American changes jobs every five years or so, 401(k) savings rates can resemble a “saw-toothed pattern” of ups and downs over time rather than the steady increase financial advisers typically recommend, said Fiona Greig, Vanguard’s global head of investor research and policy and co-author of the new report.  “The job switch is a time when a number of bad things can happen to retirement savings,” said Greig. “It’s a point of weakness in the U.S. retirement system.”  Source: Wall Street Journal 10/7/24

Have you experienced ageism in the workplace? Resume Now®’s 2024 State of Ageism in the Workplace report polled 1,003 U.S.-based workers who are aged 40 or older and found that 90% of respondents have experienced ageism in their workplace.  The study also found troubling negative emotional and financial effects on workers who experience age-related discrimination. Key takeaways of the survey include: 48% reported lower earning potential due to age-related discrimination; 91% of respondents considered taking legal action against their employers due to age-related discrimination; and 45% reported experiencing feelings of isolation and loneliness due to ageism at work.  The top five experiences concerning ageism in the workplace identified are: 52%: An employer that mainly hires younger employees; 49%: Earning less money than younger colleagues who do the same job; 45%: Different attitudes of management or leadership toward older workers than younger employees; 35%: A work environment where colleagues and/or managers make age-related comments; and 22%: A work environment where older workers are passed over for challenging assignments.  More troubling, 94% stated that ageism limits their access to professional development and training opportunities.  Source: Resume Now 9/20/24

New California discrimination – Intersectionality: Senate Bill 1137 amends anti-discrimination laws pertaining to employment, housing, public accommodations, and education to clarify that those laws also prohibit discrimination based on the intersection, or combination, of two or more protected characteristics. The law will take effect on Jan. 1, 2025. According to the law, “intersectionality is an analytical framework that sets forth that different forms of inequality operate together, exacerbate each other and can result in amplified forms of prejudice and harm." San Francisco-based nonprofit Equal Rights Advocates, which pushed for the bill's passage, said in a statement Saturday that California is the first to incorporate intersectionality into its anti-discrimination laws. Such protections are important for "ensuring that an individual's full experience of harm is recognized when they seek justice for harassment or discrimination," Equal Rights Advocates said. S.B. 1137 will serve as a blueprint for other states, the organization added.  Source: Law360 9/30/24

IRS limits for 2025 retirement plans released: The table below shows the history of and the 2025 rates for retirement plans.

Source: Captrust 11/1/2024