As with any initiative, there are a lot of important details to thoroughly and thoughtfully consider before establishing an employee relief fund (ERF).
"Carefully contemplating these considerations will also help answer the bigger questions about how to establish and administer the fund," said Laura Sorenson, chief people officer at First Watch Restaurants in the Sarasota, Fla., area.
She and other employers that have established their own ERFs offered the following recommendations:
- Conduct research to understand the level of need within your workforce and ensure that setting up an ERF is the right choice, Sorenson said.
- Work closely with your senior leadership team and get insights and alignment from the right stakeholders to determine how you want to establish the fund—private foundation versus public charity—and administer it, whether by outsourcing its administration or handling everything internally, Sorenson said.
- Ensure that you're in full compliance. "These types of funds are governed by several different laws and IRS regulations," Sorenson pointed out.
- Decide how this benefit will be funded. It could be through a one-time or periodic gift from the employer, employee contributions or fundraising, according to the Association of Corporate Citizenship Professionals.
- Determine the fund's purpose.
- Decide how the ERF will be administered. Lumen Technologies uses a Louisiana-based vendor for its ERF.
- Develop a communication plan to ensure all employees know how to apply for the funds when facing an eligible financial hardship. Communication may involve managing employee expectations.
And at OutsourcingStaff.ph, headquartered in Glasgow, Scotland, there is a standing agreement with staff that "if we assist in such a manner, as long as they continue working with us for the next 12 months,
there's no need for reimbursement," company founder Clarke Duncan said.
- Ensure transparency in the fund's management and distribution.
- Consider providing ways for employees to support the fund.
At this event, employees have the opportunity to frost, as fast as they can, the restaurant's signature chocolate cakes that are baked in house daily. Cost of entry is donated to the Heart of Portillo's Fund.
It's a way for employees "to participate and support each other," Waite said, "in a way that felt authentic to our brand."
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