Featured Archives - ɫèapp /category/featured/ Tue, 14 Apr 2026 15:14:13 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.4 Turn Performance Conversations Into Retention Tools /performance-management-retention/ /performance-management-retention/#respond Thu, 19 Mar 2026 14:04:59 +0000 /?p=5618 You've sat through the annual performance review. You've checked the boxes. Your manager delivered feedback, your employee nodded along, and everyone walked away feeling like they just survived another obligation…
And nothing changed.

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You’ve sat through the annual performance review. You’ve checked the boxes. Your manager delivered feedback, your employee nodded along, and everyone walked away feeling like they just survived another obligation…

And nothing changed.

If that sounds familiar, you’re not alone. Reviews feel like a formality. Employees aren’t growing. Good people are leaving. And you’re stuck putting out the same fires, year after year.

Here’s the truth:performance management isn’t an annual event. It’s an ongoing conversation rooted in shared goals, clear expectations, and real plans for growth. When you get it right, your employees feel more connected to the impact they create. They take ownership of their development. And they stay.

Let’s talk about how to make that shift.

Why Annual Reviews Fall Short

The traditional annual review was built for a different era. It treats performance like a report card—something you grade once a year and file away.

But here’s what happens in the real world:

  • Employees forget what they accomplished six months ago.
  • Managers scramble to remember examples from January.
  • Feedback feels stale and disconnected from daily work.
  • No one walks away with a clear plan for growth.

The result? Reviews feel like a checkbox exercise. And your team knows it.

The good news: You don’t need to overhaul your entire system overnight. You just need to shift your mindset from evaluation to development.

Performance Management Comes from Shared Ownership

Great performance management starts with a simple idea: your employees should feel like copilots, not passengers. When both sides own the conversation and the outcomes, people stop going through the motions and start taking real ownership of their growth.

It’s about building a partnership where everyone understands the goals, knows what success looks like, and has a plan to get there.

Here’s what that looks like in practice:

Step 1: Set Clear, Shared Goals

Start by making sure your employee knows exactly what they’re working toward. Not vague aspirations like “improve communication.” Concrete goals tied to real business outcomes.

Ask yourself:

  • Can my employee explain how their work impacts the business?
  • Do they know what success looks like in measurable terms?
  • Have we agreed on what they’ll achieve in the next 90 days?

If you can’t answer “yes” to all three, it’s time to have that conversation.

READ MORE: SMART Goal Setting

Step 2: Create a Regular Feedback Rhythm

Once a year isn’t enough. Once a quarter isn’t enough. Real development happens in the moments between formal reviews.

That doesn’t mean you need hour-long conversations every week. It means building feedback into the flow of work:

  • Quick check-ins: 15-minute touchpoints to share progress and remove roadblocks.
  • Real-time coaching: Feedback delivered in the moment, when it’s most useful.
  • Milestone reviews: Quarterly conversations to reset goals and celebrate wins.

These small touchpoints add up. They keep your team connected to their growth and give everyone a chance to course-correct before small issues escalate.

Step 3: Focus on Growth, Not Grades

The most powerful performance conversations focus on building future capability.

Instead of “Here’s what you did wrong,” try “Here’s what I see as your next opportunity for growth.”

Reframe the conversation:

  • Not: “You need to improve your time management.”
  • Instead: “Let’s talk about how to prioritize your projects.”

Three Tools to Get Started This Week

You don’t need a complicated system to start seeing results. Here are three practical tools you can use right now:

Tool 1: 90-Day Goal Tracker

Create a simple one-page document that includes:

  • 3–5 key goalsfor the next 90 days
  • Success metrics(how you’ll know the goal is met)
  • Action steps(what the employee will do to get there)
  • Support needed(what you or the team can provide)

Review it together at the start of the quarter. Check in monthly. Adjust as needed.

Tool 2: The Feedback Framework

When providing clear feedback, ensure you’re sharing the necessary context:

  1. Observation: What you saw or heard (specific, factual)
  2. Impact: Why it matters to the team or business
  3. Question: What the employee thinks or what they might try next

Example: “I noticed you took the lead on the client call yesterday. That helped us stay on schedule and move the project forward. What felt different about that approach for you?”

This keeps feedback clear and collaborative. And it shows your employee exactly what success looks like.

READ MORE: Managing Employees of Different Generations

Tool 3: The Growth Ownership Checklist

At the end of each quarter, ask your employee to reflect on these questions:

  • What’s one thing I did well this quarter?
  • What’s one thing I want to improve?
  • What support do I need to make that improvement?
  • How will I know I’ve made progress?

Then discuss their answers together. This puts them in the driver’s seat of their own development.

What This Looks Like in Practice

Let’s say you manage a small operations team. You have an employee who’s good at their core job but struggles with follow-through on projects.

The old way: Wait until the annual review, mention the issue in passing, and hope it gets better.

The new way:

  • Set regular, recurring goals that create opportunities for frequent review.
  • Check in bi-weekly to remove roadblocks and celebrate progress.
  • Provide real-time feedback when you see improvement.
  • Adjust expectations if the goal turns out to be unrealistic.

By the end of the quarter, your employee has built a new skill. They feel supported, not criticized. And you’ve avoided the “putting out fires” cycle.

Here’s what we know: your best people don’t leave because of salary. They leave because they don’t see a future. When you show your team you’re invested in their growth — through consistent conversations, clear goals, and real support — you give them a reason to stay.

When you shift from annual reviews to ongoing conversations, you show your team that you care about their development. You give them a clear path forward. You help them see how their work matters.

Find the Performance Management System Your Business Needs

Start with one employee, one conversation, one small shift. That’s how real change takes root.

Performance management is a practice you build over time. And when you get it right, it becomes one of your best tools for developing leaders and retaining talent.

At ESC, our HR consultants help Buffalo-area businesses build performance management systems that work — and train managers to build a continuous improvement mindset.If you’re ready to move from checkbox reviews to real development, we’d love to talk.

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Growing Past 15: Building Systems That Scale /growing-past-15-building-systems-that-scale/ /growing-past-15-building-systems-that-scale/#respond Thu, 12 Mar 2026 16:20:25 +0000 /?p=5616 You've built something real.
Your team has grown from your core four to 14 employees, and scrappiness has been your secret weapon.
Late nights researching employment rules? Calling friends for HR advice? You've figured it out as you go — and it's worked.

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You’ve built something real.

Your team has grown from your core four to 14 employees, and scrappiness has been your secret weapon.

Late nights researching employment rules? Calling friends for HR advice? You’ve figured it out as you go — and it’s worked.

But revenue is growing, new opportunities are on the horizon, and team members are enjoying coming to work every day and directly contributing to the business’s success.

This is the point where a voice in your head needs to ask: “What if we miss something as we’re growing?”

Employment Requirements Above 15 Employees

Growing from 14 to 15 employees may not feel like a big operational leap, but legally, it’s a meaningful milestone.

Several important federal laws use 15 as their coverage floor, layering additional obligations on top of what New York State law already requires. New York State’s own Human Rights Law is also among the broadest in the country.

Let’s look at a quick primer on what changes at this stage:

Title VII of the Civil Rights Act: At 15 employees, you’re now covered by federal anti-discrimination protections. This means hiring, firing, pay, and promotion decisions must be fair and consistent across race, color, religion, sex, and national origin. This doesn’t mean you can’t make tough calls. It means you need clear policies and documentation to back them up.

Pregnancy Discrimination: Both Title VII’s coverage, and the federal Pregnant Workers Fairness Act (PWFA) kick in at the 15-employee threshold. This requires a covered employer to provide a “reasonable accommodation” to a pregnant employee’s or applicant’s known limitations due to their pregnancy, childbirth, or related medical conditions, unless the accommodation will cause the employer an “undue hardship.”

The PWFA also includes specific examples of the types of accommodation considered to be reasonable for an employer to provide. It also prohibits an employer from requiring an employee to take leave if another reasonable accommodation can be provided that would let the employee keep working.

Americans with Disabilities Act (ADA): Under the ADA, employers with 15 or more employees must not discriminate against qualified individuals with disabilities in hiring, firing, advancement, compensation, job training, and other terms, conditions, and privileges of employment. Employers must also provide reasonable accommodations to disabled employees and job applicants unless doing so would cause significant difficulty or expense.

What This Means for Risk: Once you hit 15 employees, the potential cost of discrimination or ADA claims increases. Under federal law, damages are capped at $50,000 for businesses with 15–100 employees.

What Changes in Your Business Operations?

Your HR responsibilities and obligations as an employer just expanded. But the legal shift is just part of it.

What’s happening behind the scenes as you grow?

Your informal systems might become bottlenecks.

  • You struggle to keep everyone’s PTO requests organized.
  • Policies and practices you handled case-by-case now require more consistency.
  • What worked for one person or team creates conflict when applied differently to another.

Your time gets pulled in too many directions.

  • You’re answering the same benefits questions repeatedly.
  • Each new hire means another month of onboarding pulled together on the fly.
  • Every HR task that used to take 30 minutes a week turns into hours spent away from your most impactful work.

Small mistakes become more impactful risks. One misclassified employee could cause an issue during your next audit. Inconsistent policies can create claims of unfair treatment.

This is the inflection point. It doesn’t mean you need to hire a full-time HR person tomorrow, but it’s time to think about who can help you navigate the changes ahead.

How do you prepare for this stage of growth? By putting the necessary systems in place.

Three Systems You Need Before You Hit 20 Employees

You don’t need to build a full HR department overnight. You can start from three essential systems that let you scale without adding overhead.

System 1: Clear, Written Policies

If you don’t have your first employee handbook, now is the time to make it. Not a 100-page legal document—a clear guide that answers the questions your team asks most.

What to include:

  • Work hours and time off
  • Benefits eligibility and enrollment
  • How to request leave
  • Anti-harassment and anti-discrimination policies

A good employee handbook does three things: it protects you legally, gives your team clarity, and saves you time.

System 2: A Centralized HR Process

It’s time to graduate from managing HR through your inbox and sticky notes. Your business needs one place (or a set of integrated tools) where:

  • New hires complete onboarding paperwork electronically
  • Employees can access their paystubs and W-2s
  • Managers can approve time off without calling you
  • Benefits information is stored and accessible

This doesn’t have to be expensive or complicated. The goal is to get HR tasks out of your head and into a system that works for you and your business.

READ MORE: How Does HR Technology Benefit Business Owners?

System 3: Compliance Support You Can Trust

Here’s the truth: you don’t need to become an HR expert. But you do need access to one.

At 15 employees, you’re navigating ADA accommodations, COBRA notifications, wage and hour compliance, I-9 verification, and more. Miss one of these, and you’re looking at fines or lawsuits.

What compliance support should include:

  • On-call access to HR business partners who know state and federal law
  • Help with employee relations issues
  • Guidance on policy updates when laws change
  • Support during unemployment claims or labor board hearings

Is Your Business Ready for Your Next Stage of Growth?

Imagine this: you find the perfect candidate for a role that will unlock growth, and will put you over the 15-employee threshold.

You make the offer. They sign the next morning. And you know exactly what changes for your business at that moment.

That confidence changes everything. It lets you grow without hesitation and gives your team the structure they need to do their best work.

At ɫèapp, we provide the HR consulting services, compliance expertise, and benefits administration that growing businesses need—so you can grow your business for years to come. If you’re ready to build systems that scale, we’re here to help.

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How to Make Every Day Feel Like Employee Appreciation Day /how-to-make-every-day-feel-like-employee-appreciation-day/ /how-to-make-every-day-feel-like-employee-appreciation-day/#respond Thu, 05 Mar 2026 16:28:02 +0000 /?p=5611 A high-five to a team member goes a long way. A system of recognition that makes sure everyone gets the high-five they deserve, when they earn it? That’s powerful. Employee Appreciation Day is celebrated annually on the first Friday of March. The timing works well, with two months of the new year – and a…

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A high-five to a team member goes a long way.

A system of recognition that makes sure everyone gets the high-five they deserve, when they earn it? That’s powerful.

Employee Appreciation Day is celebrated annually on the first Friday of March. The timing works well, with two months of the new year – and a lot of hard work towards new goals and initiatives – in the rearview mirror.

How can you bring that same spirit of appreciation and recognition to the rest of the year?

Recognition is more than giving out awards and celebrating your people. It’s a strategic system that connects your team to the bigger picture of your business. When employees understand how their work matters, they stay longer, work harder, and contribute more.

This post will walk you through both formal and informal ways to show appreciation for your employees —and show how to establish a culture people want to be part of for years.

The Connection Between Recognition and Retention

Think of recognition as the backbone of employee engagement. When you recognize someone’s work, you’re doing three things:

  • You’re showing them their work has impact.They see how their effort moves the business forward.
  • You’re building trust.They know you notice and care about what they do.
  • You’re strengthening their connection to the team.They feel like they belong to something bigger.

Without recognition, employees start to feel invisible. They wonder if their work even matters. And when another company comes calling with a slightly better offer, they leave. Not because of money. Because they never felt connected.

Recognition is the backbone of employee engagement. It strengthens trust, shows impact, and builds connection and a culture of gratitude.

Balancing Formal and Informal Recognition

Recognition doesn’t have to be complicated. It works best when you have means to share one-to-one recognition, and recognition across the whole company.

Here’s how you consider the way your business can share both informal and formal recognition.

Informal Recognition: The Daily Moments That Matter

Informal recognition happens in the moment. It’s quick, personal, and powerful. These are small gestures that keep morale high and remind your team you’re paying attention.

Leaders can lead by example here, making time for forms of informal recognition like:

  • A verbal “thank you” after someone finishes a big project.Simple, but it shows you noticed.
  • A quick email to the team highlighting someone’s win.This takes 60 seconds and makes someone’s day.
  • A shout-out in a meeting.Public recognition in front of peers carries weight.
  • A handwritten note.In a world of emails and texts, a handwritten note stands out.

One key to informal recognition is consistency. It doesn’t cost anything but time. It just requires someone to notice and acknowledge good work.

Formal Recognition: Structured Systems That Scale

Formal recognition is more planned. It’s part of your company structure. These programs create predictable opportunities to celebrate wins and reinforce what matters to your business.

Formal recognition might come in the shape of:

  • Employee of the Month/Quarter/Year programs.These can be used to highlight top performers as well as those who embody company values. In both cases, you’re recognition becomes a confirmation of what good work looks like in your business.
  • Annual awards or bonuses tied to specific achievements.Clear criteria are key here, but financial motivators incentivize strong work from driven individuals and teams.
  • Milestone celebrations.Recognize work anniversaries, project completions, or hitting major goals. Could your team make this a ritual at all-hands meetings?
  • Peer-to-peer recognition programs.Let employees nominate each other for going above and beyond, and tie these nominations to awards or other showcases of recognition. This could be as simple as a Slack channel or a monthly form.

Formal recognition works because it’s expected. Employees know there’s a process in place. They see their peers being celebrated, and they understand what it takes to earn that recognition. Over time, these systems just become part of how your business works.

Recognition as Part of Your Total Value Proposition

Building a recognition system doesn’t require a big budget or fancy software. It just requires intentionality. Here’s a simple framework to get started.

  • Define what you’re recognizing. Start by identifying what you want to encourage. What drives success in your business? What do your top performers do that others should follow? Make a list of three to five core behaviors or results you want to recognize.
  • Mix informal and formal approaches. One without the other can lead to praise happening in private more often than in public. It could also lead to missed opportunities for recognition and culture-building.
  • Make recognition specific and personal. Specific recognition shows you were paying attention. Personal recognition shows you care about individual contributions as part of a broader team collective. It tells employees exactly what they did well, and it reinforces the behaviors you want to see more of.

Once you’ve done those things, recognition can become a piece of a larger puzzle.

To attract and retain top talent in Buffalo’s tight labor market, you need to offer a complete package. That means competitive pay, solid benefits, growth opportunities, and a culture where people feel valued. Think of it this way: benefits show your team you’re willing to invest in their health and future.

Recognition shows them you notice and appreciate their daily contributions. When you combine both, you create a workplace where people don’t just show up — they stay and grow.

Three Takeaways You Can Use This Week

Building a system for employee recognition doesn’t have to be a months-long project.

Here are three steps you can take right now to start building a stronger recognition system:

  1. Identify one person on your team who deserves recognition this week.Write them a quick email or tell them in person what they did well and why it mattered.
  2. Define 3 to 5 core behaviors or outcomes you want to recognize.Write them down. Share them with your leadership team. Make sure everyone knows what success looks like.
  3. Start a simple peer recognition program.Create a channel or system where employees can nominate each other for going above and beyond. Keep it simple and celebrate the winners publicly.

How Will You Build Recognition into Your HR Strategy?

Recognition is one piece of a larger puzzle. To attract and retain top talent, you need to offer a complete package that includes competitive pay, benefits, growth opportunities, and a positive work culture.

That said, when you make recognition part of your everyday culture, you create a workplace where people feel valued, connected, and motivated to stay.

At ɫèapp, we help Buffalo businesses develop the systems and strategies that turn recognition into retention, from employee engagement projects to culture development. If you’re thinking about how to build your broader HR strategy, we’d be glad to talk.

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Boosting Workplace Culture through Halloween Festivities /boosting-workplace-culture-through-halloween-festivities/ /boosting-workplace-culture-through-halloween-festivities/#respond Tue, 16 Sep 2025 20:14:26 +0000 /?p=5453 Celebrations at work foster a positive company culture, enhancing team spirit and employee engagement. As we approach the 4th quarter of the year, there is no time like the present to add a little fun to the workplace! As Halloween approaches, events like costume contests, pumpkin carving, and themed office decorations break up the day-to-day routine, allowing employees to connect on a personal level.

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Celebrations at work foster a positive company culture, enhancing team spirit and employee engagement. As we approach the 4th quarter of the year, there is no time like the present to add a little fun to the workplace! As Halloween approaches, events like costume contests, pumpkin carving, and themed office decorations break up the day-to-day routine, allowing employees to connect on a personal level.

Halloween also provides an opportunity for companies to strengthen their culture by showing employees that they are valued beyond their day-to-day tasks. Celebrating holidays at work can bring numerous benefits to workplace culture, boosting engagement, satisfaction, and productivity. Research demonstrates that strong employee engagement is linked to higher employee retention and increased productivity.

provides extensive evidence and case studies on employee well-being, productivity, and performance. The study found that employees who feel happy and valued tend to be more productive. Fun, creative activities—like dressing up for Halloween or office celebrations—enhance employee moods, which correlates with improved work performance.

Halloween offers a unique opportunity to foster a positive culture. Fun activities such as costume contests, themed decorations, or team trick-or-treating can encourage teamwork and allow employees to bond on a more personal level. shares that this sense of camaraderie can lead to a greater sense of belonging, a critical component of job satisfaction and engagement.

Here at ESC, our Halloween festivities have become an important part of our culture. Each year, ESC’s departments secretly plan what their team’s theme will be. While there is no official contest, the spirit of competition to have the “best” costumes leads to a day full of fun. Not only do teams dress up according to their chosen theme, but office spaces are decorated, and treats are prepared to go along with the costumes. You can often hear ɫèappemployees reminiscing about costumes from past years and if you ever take a tour of ESC, you might notice a disco ball still hanging in one of the HR Team’s workspaces from a disco theme a few years back.

This celebration is something that ɫèappemployees look forward to all year. In fact, teams have been known to select their theme by summertime! Check out some of our costumes from last year on ESC’s and don’t forget to follow us to see what we come up with this year! Because our Halloween festivities are such a great example of ESC’s company culture, we even talk about it in the recruitment process. (Being the truly Buffalo company that we are, we also cover favorite NFL team – Go Bills!)

ESC’s way of celebrating Halloween might not quite fit with the culture you are fostering at your company. For more ideas on fun ways to celebrate Halloween both in-person and virtually, check out this blog post from Motivosity: There’s still time for a secret gift exchange – here at ɫèappwe use this template.

Planning a fun Halloween celebration isn’t enough on its own to build great company culture – that requires an intentional multi-faceted approach. This is often the time of year that companies are developing their budgets. Don’t forget to build in resources to support your plans. Consider an employee recognition program, celebrating Employee Appreciation Day (check out this calendar of for more ideas), or a team outing.

For more information on the importance of building a positive company culture, check out ESC’s blog addressing strategies for building organizational culture. ɫèappworks with clients every day on strategic projects to promote open communication, support employee well-being and belonging, and develop leaders and managers. Contact us to learn more about how we can support you in building your company’s culture.

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Supporting Your Workforce: Understanding New York State’s Sick & Safe Leave and Paid Prenatal Personal Leave Laws /understanding-new-york-states-sick-safe-leave-and-paid-prenatal-personal-leave-laws/ /understanding-new-york-states-sick-safe-leave-and-paid-prenatal-personal-leave-laws/#respond Thu, 14 Aug 2025 17:22:59 +0000 /?p=5403 It is important for employers to have policies that are clear, compliant, and supportive of employees’ needs. In New York State employers must navigate guidelines around paid sick and safe leave, along with the recently introduced paid prenatal personal leave. There is one type of sick leave that employers in New York State are no longer required to provide - New York State’s COVID Sick Leave requirement ended July 31, 2025. In this blog we will break down the legal requirements and provide some suggestions on ensuring policies are compliant and supportive of employee well-being.

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It is important for employers to have policies that are clear, compliant, and supportive of employees’ needs. In New York State employers must navigate guidelines around paid sick and safe leave, along with the recently introduced paid prenatal personal leave. There is one type of sick leave that employers in New York State are no longer required to provide – New York State’s COVID Sick Leave requirement ended July 31, 2025. In this blog we will break down the legal requirements and provide some suggestions on ensuring policies are compliant and supportive of employee well-being.

Overview: New York State Sick & Safe Leave Law

Under New York Labor Law § 196-b, employers must grant employees a certain amount of sick and safe leave each year, based on employer size and annual net income:

  • 0–4 employees (net income ≤ $1M): up to 40 hours of unpaid sick leave.
  • 0–4 employees (net income > $1M): up to 40 hours of paid sick leave.
  • 5–99 employees: up to 40 hours of paid sick leave.
  • 100+ employees: up to 56 hours of paid sick leave.

Leave can be accrued at a rate of 1 hour per 30 hours worked, or employers may choose to frontload the full annual allotment at the beginning of the calendar or anniversary year.

Permissible uses include:

  • Caring for your own illness, injury, or health condition.
  • Caring for a family member’s illness, injury, or health condition.
  • Safe leave purposes related to domestic violence, family offense, sexual offense, stalking, or human trafficking.

Employer responsibilities:

  • Maintain accurate accrual and usage records.
  • Allow carryover of unused leave into the next year (though usage caps may apply).
  • Avoid retaliation against employees who use leave.

For more details, visit the

Paid Prenatal Personal Leave – Effective January 1, 2025

New York has introduced 20 hours of paid prenatal personal leave. This is the first benefit of its kind in the nation.

What It Covers:

  • Applies to all private-sector employees, regardless of employer size or part-time/full-time status.
  • Separate from sick leave—it does not come out of an employee’s sick or PTO bank.
  • Can be used for:
    • Prenatal medical appointments
    • Tests, procedures, and monitoring
    • Consultations with healthcare providers
    • End-of-pregnancy care
    • Fertility treatments

Leave may be taken in hourly increments (or the employer’s established minimum increment, which can be no greater than 4 hours) and must be paid at the employee’s regular rate of pay or the applicable minimum wage—whichever is greater.

Employers cannot:

  • Require employees to use other accrued leave before using prenatal leave.
  • Request confidential medical details beyond what is needed to verify eligibility.
  • Retaliate against employees for using this leave.

More information can be found at the .

HR Action Plan: Staying Compliant and Supportive

  1. Update written policies to include both sick/safe leave and prenatal leave provisions.
  2. Communicate clearly with employees about their rights and procedures for using these leaves.
  3. Track accurately—ensure payroll systems can track and report accrual and usage.
  4. Train managers on compliance, documentation, and employee relations best practices.
  5. Stay informed—monitor updates from the New York State Department of Labor.

The People Perspective: Why These Laws Matter

  • Workforce retention: Providing clear, accessible leave supports morale and loyalty.
  • Risk reduction: Proper compliance minimizes the risk of costly disputes or penalties.
  • Employee well-being: Access to prenatal and sick leave improves health outcomes for employees and their families.

Conclusion

New York’s Sick & Safe Leave and Paid Prenatal Personal Leave laws are designed to promote both workplace fairness and public health. Employers can meet these requirements while also strengthening their culture of care and trust. With the right policies, training, and systems in place, compliance becomes an opportunity to lead with empathy.

If you need assistance ensuring your policies meet the requirements of these laws, contact ESC to get connected with an experienced HR Business Partner to walk you through it. For information on managing other types of leaves of absence, such as New York State’s Paid Family Leave and statutory disability, visit our blog.

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Modern HR Recruiting and Internal Career Development /modern-hr-recruiting-and-internal-career-development/ /modern-hr-recruiting-and-internal-career-development/#respond Thu, 03 Jul 2025 19:42:20 +0000 /?p=5393 How does HR recruiting impact internal employee development? For small to midsize businesses, internal HR recruiting can be the best option as it leverages existing talent, reduces hiring costs, and boosts employee morale. Promoting from within minimizes onboarding time since internal candidates already understand the company’s culture, processes, and goals. It also fosters employee loyalty…

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How does HR recruiting impact internal employee development?

For small to midsize businesses, internal HR recruiting can be the best option as it leverages existing talent, reduces hiring costs, and boosts employee morale. Promoting from within minimizes onboarding time since internal candidates already understand the company’s culture, processes, and goals. It also fosters employee loyalty and engagement by demonstrating clear career growth opportunities, which can improve retention. Additionally, internal recruitment helps maintain operational continuity, ensuring that institutional knowledge and valuable skills stay within the organization. While external hiring is sometimes necessary, investing in internal talent development can be a more cost-effective and strategic long-term approach.

Throughout this blog, we will highlight the internal career development experience of two of ESC’s employees:

Gabriela Warncke, Senior Implementation Specialist

Gabriela recently celebrated her 6th anniversary with ESC. She began her career at ɫèappas a Benefits Specialist, transitioning into the role of Onboarding Specialist. As ɫèappgrew, the Onboarding Department evolved into the Implementation Department. The department continued to grow to support ESC’s focus on customer service, and Gabriela was promoted into her current role.

Sharyn Starr, Human Resources Director

Sharyn celebrated her 20th anniversary with ɫèapplast September. When she started, ɫèapphad been in business for less than 10 years and Sharyn was one of three full-time employees on the HR team. As ɫèappgrew, so did the need for additional levels of management. Today, Sharyn directs an HR team of more than 20 people. Sharyn shared her personal story of advancement within the company and her unique perspective on ESC’s philosophy and process for internal career development.

Why recruit internal candidates instead of external hires?

Recruiting internal candidates instead of external hires offers several advantages, including reduced hiring costs, faster onboarding, and stronger employee engagement. HR recruiting efforts play a crucial role in identifying potential internal candidates by analyzing performance reviews, tracking career progression, and assessing employees’ skills and accomplishments within the company. By leveraging data from performance evaluations, feedback from managers, and internal training programs, HR can pinpoint high-potential employees who are ready to take on new roles. This approach ensures that promotions and lateral moves align with both business needs and employee career goals, fostering a culture of growth and retention.

When asked about why internal career development is important at ESC, Sharyn shared that the importance of this goes all the way back to the recruitment stage, helping companies attract strong candidates. Sharyn explained that employees want to work in a place where the environment supports their future growth, so they don’t feel stagnant. Employees thrive from learning more and being challenged. Gabriela reinforced this when she described how having the opportunity to try new things is what makes her want to stay at ESC. She said that ɫèappis always adding something and always changing. Gabriela shared the same sentiment, saying she has never felt static.

When employees are made aware of internal opportunities through a job posting process, they can visualize a career map with their current company. Gabriela said she has the opportunity to be consistently challenged, and due to this she is satisfied in her career. Sharyn described an aspect of people management being that most people intrinsically want to be challenged and learn something new and when that stops, they may ask, is this the right place for me? It is vital to show employees opportunities and mentor them by outlining a potential pathway in a succession plan. Sharyn explained that managers should remember that some employees want to do what they have always done and that is fine as long as they are happy in their role and performing well.

What can PEO providers do to help internal career development?

PEO providers like ɫèappcan play a crucial role in fostering internal career development, especially for small to mid-size business leaders who may lack the time or resources to focus on employee growth. By outsourcing HR functions to a PEO, businesses gain access to structured training programs, leadership development initiatives, and learning management systems that help employees advance within the company.

A key advantage of working with a PEO is its expertise in HR best practices. This enables PEOs like ɫèappto provide guidance to clients’ leadership on assessing employees’ skills, identifying high-potential individuals using a 9-box grid, and assisting leaders on how to best create a tailored development plan for their employees.

PEOs can facilitate training programs that concentrate on employees’ capabilities in order to develop the necessary skills for internal promotions. Additionally, PEOs can help with strategic project planning such as establishing mentorship programs and succession planning to align with the company’s long-term goals.

Through internal HR recruiting, PEOs support business leaders in filling roles efficiently by promoting from within, reducing turnover, and maintaining institutional knowledge. This proactive approach not only strengthens employee engagement and morale, but also increases overall productivity and consistency over time. By leveraging the expertise of a PEO, small to medium sized businesses can learn how to cultivate a strong, capable workforce without diverting leadership’s focus from core business operations. For Sharyn, a culture of constant mentoring and learning for employees at all levels of the organization is where you can find the most success with internal recruiting.

Internal career development best practices

Internal career development best practices focus on creating opportunities for employees to grow within the organization while aligning with business goals. Here are some key best practices that ɫèappcan support your company with:

  • Clear Career Pathways – Establish well-defined career progression plans so employees understand potential growth opportunities and what is required to advance. ESC’s HR Business Partners provide clarity for employees and structure for managers to effectively develop internal talent.
  • Regular Performance Reviews & Feedback – Conduct consistent performance evaluations and provide constructive feedback to help employees identify strengths and areas for improvement. In addition to providing support on developing performance review tools and training for management on giving effective feedback, ɫèappalso offers HR technology solutions including Performance Management to streamline the performance review process.
  • Training & Upskilling Programs – Offer continuous learning opportunities such as workshops, certifications, and on-the-job training to help employees develop new skills and prepare for advancement. In order to be prepared for management roles in the future, employees often require training. ESC’s Team of HR Business Partners provide customized leadership development training to prepare future leaders.
  • Mentorship & Coaching – Pair employees with mentors or coaches to provide guidance, support, and insights on career development and leadership growth. ɫèapphas an internal mentorship program where mentors support mentees in developing Individual Development Plans (IDPs). These plans support individual growth that supports the overall strategic goals of the company.
  • Internal Mobility & Cross-Training – Encourage employees to explore different roles or departments within the company to broaden their skills and experience.
  • Sharyn described how this can be implemented by letting employees know the company has development opportunities internally. Many employees in today’s workforce are looking for that next challenge or opportunity to enhance their skillset. If employees do not know of internal opportunities, they may seek them elsewhere. Additionally, if a promotion is not readily available, some options are to have the employee be a project lead working with a team or be a subject matter expert (SME) in an area where they excel. Not only will this provide additional responsibility, but it will also allow that employee to remain highly engaged; thereby creating a happier employee and in turn promoting retention.
  • Gabriela recounted her personal path of career development at ESC, and it started with a manager recognizing that Gabriela always said yes to learning new things that support the company. Saying yes led to a transition from the Benefits Team to the Implementation Team. As ɫèappcontinued to grow, Gabriela had the opportunity to advance within that Implementation Team to a Senior Implementation Specialist.
  • Succession Planning – Identify high-potential employees early and prepare them for leadership positions through targeted development programs. Formal succession planning is a strategic tool that supports the development of high potential employees, but informal succession planning can be just as valuable.
  • Recognition & Rewards – Acknowledge and reward employees who actively pursue career growth and contribute to the company’s success, reinforcing a culture of continuous development.
  • Encouraging Employee Initiative – Empower employees to take ownership of their career growth by setting goals, seeking learning opportunities, and expressing interest in advancement.
  • Leveraging HR & PEO Support – Utilize HR professionals or PEO services to implement structured career development programs, provide training resources, and ensure alignment with business objectives.

Conclusion

Sharyn’s experience at ɫèappreinforces the amazing retention opportunity presented through internal recruiting. Sharyn spoke about how it leads to employees that are content and happy in their role, retains institutional knowledge, and that employees might tell their friends and professional network about how the company believes in and supports employees. Sharyn also shared how impactful it can be as a manager and that developing people is an aspect that she sought when taking her role at ESC. Challenging employees, watching them learn, and seeing them succeed is what makes Sharyn’s job so rewarding. Sharyn values helping employees gain confidence, and this type of impact ultimately drives employee engagement.

While a formalized strategic succession plan and associated employee development program can make a huge difference, less formal internal HR recruitment processes can be just as impactful. Sharyn suggested that this could be as simple as the questions you ask every time you meet with your employees:

  • How is it going?
  • Are you satisfied with your work?
  • As a company are we what we said we would be?
  • Are you feeling challenged enough?
  • How is your workload?
  • What aspects of your job do you like/dislike?

Sharyn recommends doing performance appraisals annually but also checking in on a more frequent basis. Every time a leader connects with their direct report, it is an opportunity to develop their work relationship, discuss areas that need improvement, and reinforce what they are doing well. This opens the lines of communication allowing employees to feel comfortable with their manager, thereby establishing a trusting relationship. Employees bring a wide range of skills and experiences from previous jobs when they are hired, which leadership may be unaware of or possibly have not taken advantage of. A leader has a better chance of maintaining an engaged workforce by knowing the additional skillset their employees have and using those skills to their advantage. It is important to recognize that continual feedback is a leader responsibility.

These conversations ultimately lead to retaining employees by finding out what they want to do with their career and providing that path within the company. In Sharyn’s experience, ɫèappneeded to grow before there was an opportunity for her to advance internally. She loved what she did as an HR Business Partner supporting clients, but her ultimate goal was to provide growth opportunities and develop others through a management role. Sharyn has grown with the company as ɫèappprepares to celebrate 30 years in business next month. What really made the difference for her is having leadership that believed in her the whole time.

Gabriela shared a similar sentiment to Sharyn, describing her manager as a great motivator. When Gabriela says she is comfortable with something, her manager doesn’t doubt that ability and gives her opportunities to try new projects. Gabriela feels that the success the Implementation Team has experienced is due to leadership’s philosophy of soliciting employee ideas and allowing the employee to put that plan into action.

Leaders and managers with the skills to develop employees are the key to success with internal HR recruiting. Identifying employees with high potential and empowering them through autonomy and trust is essential. ɫèappsupports organizations across industries in building strong leaders that can support employees through internal HR recruitment. Contact us today to learn more about how ɫèappcan support your organization’s internal career development efforts.

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The Evolution of Strategic Human Resources: Celebrating 30 Years of ESC /the-evolution-of-strategic-human-resources/ /the-evolution-of-strategic-human-resources/#respond Mon, 21 Apr 2025 19:37:25 +0000 /?p=5360 In honor of ESC’s 30th Anniversary, Liz Warren, ESC’s EVP and Chief People Officer reflects on how far human resources has progressed and how the company has grown and developed to meet the new challenges. Liz recently celebrated 25 years with ɫèappand has a unique perspective on how ESC’s depth and breadth of services have evolved from a more transactional approach in the past to today’s strategic focus.

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In honor of ESC’s 30th Anniversary, Liz Warren, ESC’s EVP and Chief People Officer reflects on how far human resources has progressed and how the company has grown and developed to meet the new challenges. Liz recently celebrated 25 years with ɫèappand has a unique perspective on how ESC’s depth and breadth of services have evolved from a more transactional approach in the past to today’s strategic focus.

 

From Administrative to Strategic: The Evolution of HR

Traditional Administrative HR

When we look back to 1995 when ɫèappwas founded, the primary focus of human resources was administrative tasks such as payroll processing, benefits administration, and compliance with labor laws. These functions, while essential, often positioned HR as a support role rather than a strategic partner within organizations.

In the beginning, ɫèappdid not have a dedicated HR Department, with the company focusing primarily on payroll and benefits. When a client had a question, ɫèappwould call on a part-time HR consultant. In those early days, Liz would do the occasional seminar and provide on-call support. Greg Bauer eventually asked Liz tojoin the company full-time. Liz recalls Greg telling her that someday she would have 25 people in the HR department. Liz was cautious coming from Wegmans, a large, well-established company, but here ɫèappis today with an HR Department of 25 and an amazing people-centric culture.

More HR professionals joined the team,but after about 5 years ɫèappidentified the need to add a compliance officer. While compliance has always been a part of the HR function, it has increased in complexity over the last few decades, with changes being made on the federal, state, and local level at a rapid pace. Back in the 1990s and early 2000s, you might have had one significant change in a 2-year period. In contrast, 2024 saw approximately 17. ɫèappstarted with one half time compliance officer, and today the company has 2.5.

Liz recalls a few times over the years when she identified that a compliance change was going to change ESC’s business significantly. The following timelines reviews U.S. trends and highlights from New York State that changed the compliance landscape for employers.

Compliance & Labor Law: 30-Year Timeline

1995–2004: The Digital Dawn & Global Expansion

U.S. Trends

  • Digital transition begins: HRIS systems start replacing manual records.
  • Legal focus: FMLA enforcement and ADA regulations increase, reshaping hiring and accommodation practices.
  • Diversity initiatives begin to appear in corporate America.

New York Highlights

  • Labor Law Section 195 increases focus on recordkeeping and notice requirements related to employee compensation, laying the groundwork for future wage transparency laws.
  • Stronger discrimination enforcement under New York’s Human Rights Law included reasonable accommodations for persons with disabilities, protections for religious practices and observances, protected traits/characteristics were expanded to include sexual orientation and military status.

2005–2014: Strategic HR & the Early Gig Economy

U.S. Trends

  • HR becomes a strategic business partner, focusing on aligning employees with business goalsandemployee retention.
  • Remote work and flexible schedules gainpopularity.
  • Gig economy emerges, led by companies like Uber and TaskRabbit.
  • Increased scrutiny of wage and hour violations under FLSA.

New York Highlights

  • Wage Theft Prevention Act (2011) mandates wage notices, pay stubs, and recordkeeping.
  • City of Buffalo’s “Ban the Box” law (2014) prohibits employers from asking about criminal history on job applications.

2015–2019: Tech Boom, Equity Push, and the Rise of People Analytics

U.S. Trends

  • AI and cloud technology transform recruiting, onboarding, and performance management.
  • People analytics become a core HR competency.
  • The MeToo movement (2017) spurs sweeping changes in harassment training and reporting policies.

New York Highlights

  • Fight for $15: Minimum wage steadily increases to $15/hour in NYC by 2019.
  • Salary History Ban: NYC enacts the ban in 2017; New York State follows in 2019.
  • Freelance Isn’t Free Act (2017, NYC): Requires written contracts and timely payments for freelancers.

New compliance requirements around leaves of absence had a large impact on ESC’s work. Managing these used to take a Benefits Consultant about 15 hours per week. Today, ɫèapphas 1.5 people to support leave of absence management along with assistance from HR Business Partners, ensuring employees are aware of what is available to them.

2020–2021: COVID-19 & the Employee Wellbeing Revolution

U.S. Trends

  • Remote work becomes default for many industries.
  • HR shifts to crisis management, health policy, and employee mental health.
  • Digital adoption surges: Virtual onboarding, Zoom-based meetings, and e-learning replace in-person processes.
  • Emergency COVID leave laws pass (such asFFCRA).

New York Highlights

  • guarantees paid/unpaid leave based on employer size.
  • Remote work raises tax and labor law complexities, especially between NYC and surrounding states.

COVID was one of those most significant challenges faced by the HR Department at ɫèappover the last 30 years. Liz remembers watching the daily press conferences and hearing her phone ring immediately afterward. Clients were calling to ask for a policy based on the changes just announced in the press conference. Nothing has changed business more than that. Lizrecalls the HR Department movingat such a fast pace, and then every few hours things would change.

2022–2025: The Future of Work Is Now

U.S. Trends

  • Hybrid work models continue to be the norm and companies formalize WFH policies.
  • Debate over AI in HR: Use in hiring, monitoring, and evaluations faces legal and ethical scrutiny.
  • Unionization wave: Workers at Amazon, Starbucks, and tech firms drive a labor resurgence.
  • Pay transparency and skills-based hiring become core HR practices.

New York Highlights

  • Expanded harassment laws: All employers (even with one employee) are now covered; annual training is mandatory.
  • Electronic Monitoring Law (2022): Employers must notify workers of monitoring (email, internet, etc.).
  • Gig worker protections continue evolving.

New York State’s required annual non-harassment training was another of those big changes that impacted ESC’s HR Department. If you have attended one of our training sessions, you may have heard that ɫèapphad recommended and facilitated this training long before it was required. The training then focused more on the importance of respect in the workplace and talked mostly about sexual harassment. Liz explained that more claims have come forward since mandatory annual training went into effect, but ESC’s #1 call was always on harassment concerns.

The last three decades have transformed Human Resources from an administrative back-office function into a strategic, tech-enabled, and compliance-heavy discipline, with New York State consistently leading or expanding on national labor protections. Liz explained that if an organization does not get the compliance components right, they won’t have the foundation necessary for the strategic people operations to be successful.

Emergence of Strategic HR

The role of HR professionals began to evolve as organizations recognized the importance of aligning people management with business objectives. In the beginning, ɫèapphad on-call support and training, but not much of a focus on compliance. ɫèappthen moved to growing the compliance through dedicated compliance officers and then started to look at how to strategically improve people operations. Those foundational aspects are important, but what sets great HR departments and high performing companies apart is the strategic HR.

ɫèappstarted to look at one strategic project at a time and building it out to today, ɫèapphas at least 16. The most requested strategic projects are:

  • Organizational Development through Company Culture: Shaping company culture, developing policies focused on company values, and improving organizational effectiveness.
  • HR Assessment: Evaluating company policies, practices, and processes to ensure consistent application of compliant HR procedures.
  • Succession Planning: Focusing on building a pipeline of future leaders, enabling continuity in the organization’s operations, and minimizing disruption when critical roles are vacated.
  • Compensation Analysis: Evaluating the company’s current base compensation structure and researching comparable positions in the job market to plan for future compensation structure needed to remain competitive.
  • Employee Engagement & Retention: Assessing the degree to which employees are motivated to create positive organizational outcomes.

As strategic HR evolved, ɫèappprocured clients who had a focus on strategic initiatives.ɫèapphas committed to continuous improvement, systematically examiningprocesses to create efficiencies so that clients are better served. For example, the leave management process went from taking weeks to submit a claim to a few hours by adding efficiencies. As processes became more efficient, ɫèappwas able to add value for clients through more strategic HR work.

ɫèapphas always valued training and development, as was apparent when Liz was called on in her early days with the company to facilitate seminars. Seminars went from an hour meeting with a group of leaders to today’s very interactive sessions that might be multiple hours to a full day retreat. What started as a handful of seminar topics in 1995 has evolved into an HR University of at least 50 seminar topics today.

ɫèapphas always focused on strong leadership as a cornerstone of the HR function. One of the early client offerings was one on one or executive coaching. The importance of strong leadership skills was apparent from the beginning, and there is still a large focus on that at ɫèapptoday.The leadership development series stands out as a strategic offering for ESC’s clients. Clients will engage ɫèappfor 6 months to a year for a series of topics that really help to grow their leadership team making abig difference for workplace culture and employee engagement and retention.

The Strategic HR Business Partner Model

The concept of HR Business Partners (HRBPs) exemplifies the strategic role of HR. HRBPs work closely with business leaders to develop and implement HR strategies that support business objectives. This model emphasizes the importance of HR’s involvement in strategic planning and decision-making processes.

The skills of HR professionals have had to increase greatly over the last 30 years. HR in the past was thought of as the party and picnic planning employee, not as a strategic person that could help your business grow. As it changed, it was necessary for ɫèappto have well versed HRBPs with skills in training, compliance, strategy, and employee relations. Traditionally, in a large company, an HR professional might only have one of those responsibilities. ɫèapphas strategically recruited and selected lifelong learners who are motivated to learn and do more than they would typically do in an HR role. By having a large team with different skill sets and strengths, we are able to provide the best service to our clients.

Back in the early days at ESC, clients were not assigned a service team like they are today. Whoever happened to answer the phone was the one who provided the on-call support or arranged to meet with the client. A big improvement was assigning clients a dedicated HRBP who couldget to know them, their people, and their industry. ɫèappalways wanted to be relationship builders with clients but today it is even more important. ESC’s HRBPsare true business partners who know the intricacies and industry specifics for each of the organizations they work with.

PEOs sometimes focus on one industry, but ɫèappmade the decision early on to be diverse and always maintained it is about the people. HRBPslearn the intricacies of the business or industry, applying that knowledge with a focus on thepeople. Even back to the company’s beginnings, an ɫèappemployee could findthemselves working with a medical practice in the morning and a manufacturer in the afternoon. That part has stayed the same, but the type of work and variety of workis much more complex now. 30 years ago, the focus was on basic compliance and employee relations. Today it is much more; it is all those things it was back in 1995, plus the complexity of strategic HR.

Another huge difference is that ESC’s clients now have employeesin 36 states. This increased complexity led to ɫèappseeking out resources to prepare HRBPs to support clients in thinking about things like employment manual addendums for each state they work in, and how to meet the unique state-specific compliance requirements. HRBPs need to have more knowledge today to create proactive support for the clients so they can focus more on how to meet business objectives.

Ongoing, day-to-day support is also provided in a similar way to what it was in 1995. ɫèapphandles more client requests for virtual meetings, along with continuing to do a lot of work in person and on site with clients. This flexibility to accommodate the preference of our clients also opens the door for serving clients on a national level.

Some Things Will Never Change

ESC’s focus on customer service has always been very strong. As an independent contractor working with ESC, Liz saw that in the early days, and it was a values alignment that led to taking the leap to work at ɫèappfull-time over 25 years ago. Excellent customer service continues to be ESC’s #1 value with treating customers and employees well as the company’s top priority.

It was important that ɫèapphave values established to communicate how leadership and employees should act. A task force/committee was created with volunteers from every department. This group talked about putting values into words and action. To this day, ɫèappincludes the values in the recruitment process andemployees learn about the values in action on their first day of work.

ESC’s values include:

  • Integrity…Trust: Choose to do the right thing with courage and character.
  • Customer 1st Focused: It is not enough to deliver excellent customer service; you must have a passion for it. Aim to discover exactly what it is that your customers want and then make certain that you exceed their expectations. Follow through on your promises.
  • Positive Attitude: Create together through optimism and a positive contagious attitude.
  • Quality…Excellence…Professionalism: Be committed to excellence that goes above and beyond requirements. Exhibit pride in being a true professional and show your passion for your work.
  • Teamwork…Collaboration…Open Communication: Collaborative, it’s about connection: how we work together, the way we treat each other, the way we support each other, the way we speak to each other, the way we help each other grow.
  • Commitment…Accountability…Responsiveness: Act with urgency and be held “answerable” for accomplishing tasks and goals. Ensure timely delivery and follow through of your tasks and objectives. It is when employees take ownership of their actions that achievement reaches new levels.
  • Flexibility…Adaptability…Continuous Improvement: Welcome change and realize you can achieve much more through a dynamic process.
  • Diversity: Act in a manner that demonstrates an understanding of and a sensitivity and concern toward each person’s individuality and importance. We share in the belief that diversity provides a competitive advantage.

For ESC, it is so important that all ɫèappemployees know that if you can’t live these values, ɫèappisn’t the right place for you.

Another thing that hasn’t changed is that ESC’s work is interesting! The HR Department often talks about how we should write a book, and when someone says, “that could be the title of another chapter,” you know something extra interesting has happened. Liz has said that some of the HR Department’s stories are better than Lifetime movies.

Conclusion

In thinking back on the last 30 years since ESC’s founding, Liz identified that life moves so fast. When she went to meet with a handful of leaders at a company with her training packets back then to today’s all-company seminars with 100-150 people, she never could have imagined this. As she was thinking back on the development of ESC’s HR Department, Liz said that she wishes she would have kept a journal. It would have been really interesting to look back on not just ESC’s evolution, but the evolution of the companies we have supported. There are clients at ɫèappthat were with the company when Liz came on board 25 years ago and she finds it inspiring to talk to people you have had a business relationship with for 25 years.

The evolution of HR from an administrative function to a strategic partner reflects what ɫèapphas always believed. A company’s people are the most vital component of organizational success. By embracing strategic roles, contributes to shaping organizational culture, driving performance, and achieving business goals.

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Today’s Job Market- Implications for Small and Midsize Employers /todays-job-market-implications-for-small-and-midsize-employers/ /todays-job-market-implications-for-small-and-midsize-employers/#respond Fri, 11 Apr 2025 13:50:20 +0000 /?p=5317 It’s safe to say that the labor market has finally entered its post-pandemic era! As employers navigate this complex new era, the labor market for small and midsize employers continues to be influenced by the uncertainty prevalent in various economic factors.

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It’s safe to say that the labor market has finally entered its post-pandemic era! As employers navigate this complex new era, the labor market for small and midsize employers continues to be influenced by the uncertainty prevalent in various economic factors.

As of March 2025, theU.S. jobmarket continues its moderate growth trajectory. The reported an addition of 228,000 nonfarm payroll jobs, up from the revised down count of 117,000 in February. The unemployment rate was steady at 4.2%, staying within the narrow range of 4.0%-4.2% since May 2024, and signaling ongoing labor market stability and strength. These figures continue to reflect the post-pandemic normalization trend, with the average monthly gain over the past 12 months now at 172,000.

U.S. Labor Market Snapshot, Q1 2025

Sector-Specific Employment Trends

Several sectors experienced notable employment changes in February according to the :

 

  • Health Care: The sector added 52,000 jobs in February and 54,000 jobs in March, continuing its consistent growth pattern over the past 12 months. Significant contributions in both February and March came from ambulatory health care services, hospitals, and nursing and residential care facilities.
  • Financial Activities: Employment rose by 14,000 in January and 16,000 in February, surpassing the prior 12-month average gain of 5,000. Growth was observed in real estate and rental and leasing and insurance carriers and related activities, while commercial banking experienced a decline.
  • Retail Trade: While employment in retail trade has seen ups and downs, the sector added 24,000 jobs in March. Food and beverage retailers showed the largest gain, while general merchandise retailers lost jobs.
  • Transportation and Warehousing: The sector continued its upward trend with an addition of 16,000 jobs in February and 23,000 in March, higher than the average monthly gain over the previous 12 months of 12,000. Notable increases occurred in couriers and messengers, truck transportation, and air transportation.
  • Social Assistance: Employment continued to trend up with an addition of 11,000 jobs in February and 24,000 jobs in March. Individual and family services contributed significantly to this increase over the past two months.
  • Federal Government: While there has been news of ongoing workforce reductions in the sector, it is important to note that employees on paid leave or receiving severance pay are counted as employed in BLS statistics, so the declines may not be apparent until Q2.

Labor Market Dynamics

As of the most recent report (February 2025), there were 7.6 million job openings. Updated figures for March will be released at the end of April to further clarify these ongoing trends:

  • Job Openings: There were 7.6 million job openings, indicating sustained demand for labor.
  • Hires and Separations: Both hires and total separations remained relatively stable at 5.4 million and 5.3 million, respectively.
  • Quits: The number of quits was little changed at 3.2 million, suggesting a steady level of worker confidence in job mobility.

Implications for Employers

These labor market trends have several implications for small and midsize employers:

  1. Talent Acquisition Challenges

The unemployment rate of 4.2% still reflects a relatively tight labor market, indicating employers may face challenges in attracting qualified candidates. Employers should analyze their recruitment strategies, ensuring they are offering competitive compensation packages, comprehensive benefits, and flexible work arrangements to be effective in attracting top talent.

  1. Wage Pressures

With ongoing competition for skilled workers, upward pressure on wages is likely to continue. Sectors experiencing significant job growth, such as health care, may be particularly affected. Employers should prepare for potential increases in labor costs and consider budget adjustments accordingly.

  1. Focus on Retention

Given the challenges associated with talent acquisition, retaining existing employees becomes even more critical. Implementing initiatives that promote job satisfaction, such as professional development opportunities, recognition programs, and fostering a positive workplace culture, can enhance employee loyalty and reduce turnover rates.

  1. Adaptation to Sector-Specific Shifts

Employers in sectors experiencing employment declines, such as retail trade, may need to adapt to changing market conditions. This could involve diversifying service offerings, exploring new markets, or investing in technology to improve efficiency and remain competitive.

Uncertainty is the Key Takeaway

In summary, the current U.S. labor market presents both opportunities and challenges for small and midsize employers. By proactively addressing talent acquisition and retention, managing wage pressures, and adapting to sector-specific trends, businesses can navigate this complex environment effectively. Given the economic uncertainty businesses are facing, transparency through clear communication will support employee engagement efforts. Leadership should take a strategic approach through a clear understanding of their business’s financial situation. If the business is in a position to hire, it is a great time to recruit some excellent talent while other businesses or sectors are forced to take a more conservative approach.

Employees are also facing uncertainty in light of the current economic and political climate. Focusing on employee morale and productivity is key to combatting that uncertainty. For tips on attracting and retaining top talent, check out ESC’s vast library of blogs. The following topics provide information on how to promote employee engagement and a positive workplace culture:

If you need assistance with your recruitment and retention strategies in light of the uncertain labor market, contact us for expert HR advice.

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Women in the Workplace /women-in-the-workplace/ /women-in-the-workplace/#respond Tue, 25 Mar 2025 13:04:20 +0000 /?p=5288 The role of women in the workplace has evolved significantly over the past few decades, with more women breaking barriers in traditionally male-dominated industries, assuming leadership roles, and shaping the future of work. Despite this progress, challenges persist that hinder full gender equity in professional environments. Understanding these challenges and advocating for solutions is key for a successful business and positive workplace environment.

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The role of women in the workplace has evolved significantly over the past few decades, with more women breaking barriers in traditionally male-dominated industries, assuming leadership roles, and shaping the future of work. Despite this progress, challenges persist that hinder full gender equity in professional environments. Understanding these challenges and advocating for solutions is key for a successful business and positive workplace environment.

Women now make up a substantial portion of the global workforce, contributing to economic growth and innovation across industries. However, women have a longer history in the workplace than we often realize, both in the paid and domestic sphere. At home in the  included cooking, cleaning, weaving and sewing cloth, spinning yarn, and taking care of children, animals, and gardens. Women also worked in fields and when their husbands were away for long periods of time. During the Industrial Revolution, women flocked to cities in large numbers where they labored for long hours in dangerous factories. As a result, women like became successful changemakers for increased workplace safety and the passage of child labor laws which workers enjoy today.

The stay-at-home role is fairly recent in history and was often limited to the wives of wealthier men in the 1950s and 60s, who did not need to work since their husbands could support them. Other women, especially After women gained greater access to education, they began careers in teaching, nursing, and office environments. These fields are still female dominated. In 2021, women accounted for 86.7% of registered nurses but only 19.7% of software developers- despite a continuing trend towards higher education. 47.6% of women held bachelor’s degrees in 2021, but the technology industry is still largely male. In , professionals express real life examples on how this gender gap in tech is so dangerous, using pacemakers as an example. Since coding is done by a human, mistakes and biases naturally arise, and the majority of coders today are white or Asian males. When these men were coding pacemakers, their implicit gender biases prevented them for accounting for the diversity of people who would be using pacemakers- leading to a pregnant woman being shocked by her pacemaker because of her heart palpitations. Heart palpitations are common in pregnancy, and these shocks could have been prevented had women been considered or consulted.

The Wage Gap

Despite being highly educated, women continue to earn less than their male counterparts, even in similar roles with equal qualifications. This is referred to as the gender wage-gap. In 2024, women earned an average of 85% of what men earned, Equal Pay Day was on March 5th this year, symbolizing how far into the year women must work to make as much as men in the previous year.

As a result of these inequalities, many women find themselves burnt out from constantly trying to balance work and familial responsibilities; producing exceptional results to prove to others that they deserve their titles while continuing to shoulder many household responsibilities. These difficult circumstances affect career progression, job satisfaction, and overall quality of life, especially in highly stressful industries.

Rise in Female Leadership

Today, more and more women are stepping into executive positions and boardrooms. But this progress is fairly recent: many significant changes for women occurred in the last 50 years. For example, the , Katherine Graham, assumed leadership of The Washington Post only 53 years ago, in 1972. Women in American government remain largely underrepresented to this day. Of the 116 Supreme Court Justices, While it is important to celebrate milestones for the trailblazing women of our past and present, a disappointing study by JPMorgan Chase found Another issue from this long-standing exclusion is that working women today have less female role models in leadership positions. This is discouraging and limits valuable mentorship opportunities. Coupled with gender biases, stereotypes, and microaggressions that persist in many workplaces, women seeking career success must navigate relatively new territory that has been historically dominated by men. Despite progress, women remain underrepresented in C-suite positions and high-level decision-making roles, an issue that is exacerbated by race. found that for every 100 men promoted from entry-level to manager this year, 87 women were promoted. For women of color there has been a backslide in progress this year with only 73 women of color being promoted for every 100 men compared to 82 last year.

Advancements in Laws and Workplace Policies:

Many companies are implementing family-friendly policies, flexible work arrangements, and pay transparency measures to support equity, and governments have worked to pass laws to better support female workers. 47 years after the federal Pregnancy Discrimination Act was passed (1978), New York State signed Labor Law Section 206-c, giving all employees with the regardless of the size of their employer or the industry they work in, addressing a decades long issue faced by new mothers in the workplace. Another challenge is paid family leave, which does not exist on the federal level. Former President Bill Clinton passed the federal FMLA act, mandating companies with 50 or more employees to provide up to 12 weeks of unpaid, job protected leave for qualifying family and medical reasons. While groundbreaking at the time, it has proved unrealistic for many of today’s workers to take advantage of, as the costs for rent and groceries have , leaving . As a result, taking unpaid family leave could be detrimental for many families.

As of 2025, : California, Colorado, Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Oregon, Rhode Island, and Washington. In 2026, Minnesota will be added to that list.

Many workers are finding some relief with the increased support from private companies, who are increasingly offering flexible work schedules. Women who work a flexible schedule are just as ambitious as women based in the office and say that Others say they have more time to focus on their work. The research also suggests that when women work remotely, they face fewer microaggressions and have higher levels of psychological safety, which can improve employee retention.

ɫèappis a leading HR company with 30 years of experience offering smart solutions for compliant human resources, payroll, employee benefits procurement and administration. If your company is interested in taking actionable steps to improve your workplace, contact us to get connected with an expert HR Business Partner today.

Actionable Steps to Improve Your Workplace

Equal Pay Initiatives: Companies should conduct regular pay audits to ensure fair compensation across all genders. provides comprehensive pay audits across industries.

Mentorship and Sponsorship Programs: Establishing mentorship networks can help women gain guidance and advocacy for career advancement. Consider educating employees on local offerings or implementing internal mentorship programs. Check out resources on federal and state sites as well. The offers training and funding opportunities for female entrepreneurs.

Flexible Work Arrangements: Offering remote work options, flexible hours, and parental leave policies can support a better work-life balance. This can boost productivity, improving the employee experience and retention. Many companies are also implementing summer hours.

Unconscious Bias Training: Educating employees about implicit biases can create a more inclusive and equitable workplace culture. Many serious HR issues can start off as “harmless” comments from employees who lack the understanding on what’s appropriate and what’s not. ɫèappprovides a plethora of customizable in-person and virtual trainings.

Moving Forward

As organizations continue to evolve, prioritizing gender equity is not just a moral imperative but also a business advantage. Companies that champion women in the workplace benefit from diverse perspectives, increased innovation, and stronger financial performance. By fostering equitable workplaces, companies play a pivotal role in driving lasting change and ensuring that women have the opportunities they deserve in order to thrive in their careers.

At ESC, we are committed to supporting individual employees and organizations. today to learn how our expertise in Human Resources can help your business thrive.

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How Does HR Technology Benefit Business Owners? /how-does-hr-technology-benefit-business-owners/ /how-does-hr-technology-benefit-business-owners/#respond Fri, 24 Jan 2025 17:26:00 +0000 /?p=5278 Just as the approach of today’s modern HR has changed, so has the technology behind it. HR professionals once used paper files, metal filing cabinets, and binders to maintain and organize PTO, policies and procedures, and everything in between. Today, business owners and CEOs can access cutting-edge HR technology that streamlines all their business needs into one platform. All HR tasks, including onboarding, benefits management, payroll, and more are stored in one central location.

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Just as the approach of today’s modern HR has changed, so has the technology behind it. HR professionals once used paper files, metal filing cabinets, and binders to maintain and organize PTO, policies and procedures, and everything in between. Today, business owners and CEOs can access cutting-edge HR technology that streamlines all their business needs into one platform. All HR tasks, including onboarding, benefits management, payroll, and more are stored in one central location.

What is HR technology?

HR technology is the umbrella term used to describe the cloud-based software and platforms that manage all essential aspects of HR’s functions. With this software, employers can save time and easily access all aspects of HR.

Functions of HR Technology:

  • Payroll
  • HR administration
  • Talent management
  • Employee benefits administration
  • Employee training and engagement
  • Document management
  • Employee self-service

What kind of impact does HR technology have on the modern workplace?

As the workforce has evolved, so has HR. As more and more businesses have moved to hybrid or remote set-ups, HR technology has increased in importance as far as keeping employees on track and informed. Utilizing a platform that connects the business to its people is a key component in maintaining effective communication with employees. Many HR platforms allow employees to access and engage with employee self-service portals through a mobile app. By using the app, employees can request PTO and review their benefits and pay stubs. The ease of accessing this information can enhance your employees’ experience.

For business leaders and CEOs, this software allows you and your company to reach your full potential by neutralizing the traditional HR model, which is typically very costly and inefficient. Having an HR professional on your team is important but having the proper technology behind them can help your business go even further. For example, recruiting is often one of the most difficult tasks for our clients. Incorporating HR technology, such as using an applicant tracking system (ATS) makes the recruitment process much easier. One of our clients shared this quote about their experience using the ATS module on our HR technology platform: “I just wanted to say that I love my ATS! I have the jobs posted and I’m communicating with the candidates through the system as well. Thank you so much! You made my month- actually my last couple of months!” We recognize that providing our clients with cutting-edge technology makes it easier to reach their goals.

What does the future of HR technology look like?

HR technology will continue to streamline essential processes like payroll, talent management, and benefits administration. As the needs of workforce management evolve, so will the technology options to administer it. This software will play a key role in helping business leaders prioritize employee well-being and skill development. With additional modules such as learning management and performance tracking, your employees will stay on track to acquire new skills and achieve their goals, maximizing your workforce’s potential.

Another benefit of utilizing HR technology is the minimization of errors. For HR administration, all employee data is accurately stored, and duplicate data can be prevented. In addition to this, searching through your employee database is a simple task- you can easily view their compensation rate as well as their payroll tax status on the same file.

When working in payroll, it’s crucial to have accurate calculations, deductions, and time and attendance tracking to ensure employees are paid correctly. By investing in HR outsourcing services like ESC, business leaders have access to HR technology that works for them. This software ensures accuracy for basic payroll needs but also provides W-2s, garnishment withholding, standard and custom payroll reports, and more. When a business invests in HR technology, it saves time, reduces errors, ensures accuracy, and drives success through greater efficiency.

An Example of How HR Technology Can Work for You

As remote/hybrid work situations continue to evolve, HR technology will be essential in the automation of tasks and employee monitoring. With the touch of a button, your repetitive tasks can be automated. Here’s an example:

Before:

Recruiting for your business has been difficult. You find yourself posting job ads on a few job boards, but you’ve been overwhelmed by the number of unqualified applicants filling your inbox. After you take a few hours to search through and find a few qualified applicants, you send an email to each of them to schedule an interview. When you hire a new employee, you send them a few new-hire files to complete and email back to you before they start.

Now:

You recently invested in an HR technology system that includes an . When a qualified applicant applies and they meet your requirements for moving forward in the process, they will receive an automated email asking them to pick a time to schedule an interview. When you hire your perfect candidate, they will receive an automated email containing a link to an employee portal; here they will complete all the necessary onboarding documents they will need to complete to get started at your business. This saves you the time of digging through applicants and sending emails. It also preserves the applicant’s information in a secure place.

The future of technology will continue to change and bring new approaches to how HR and employee administration are handled. The HR Digest has an insightful article discussing the .

Conclusion

HR technology has become the centerpiece of what human resources management looks like in 2025 and beyond. Employers have found the ease of streamlining HR tasks creates a more efficient and tactical approach to managing their essential HR functions.

In addition to having access to our , ESC’s clients have access to our team of 24 Human Resource professionals to help them navigate everything from employee engagement and performance management to compensation analysis and succession planning. If you’re ready to streamline the core functions of HR and work with a friendly and dedicated team of professionals, please contact us!

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