The tiered system usually breaks down into these categories:  Employee only (individual), employee plus spouse (or increasingly plus one, either spouse, partner or child), Employee plus children (without spouse/partner), or Employee plus spouse/partner and children (family).  Each level may require a different level of cost sharing with employee.  In some cases the plans may limit the number of children eligible for coverage.

There is another interesting factor that companies are using to mitigate their healthcare insurance expenses – focusing on the employee’s eligibility for coverage under a spouse’s plan.  Some companies deny coverage to spouses that have insurance through another source.  In some cases the employee may be charged a “surcharge” if they are eligible for coverage from another source. 

Pricing of coverage is very important in the overall picture.  If the company’s policy is inexpensive relative to the employee’s spouse’s plan, then the employer may end up covering more dependants than other companies in the area.  If the pricing is too restrictive, then employees may not get the coverage they need for their families,   The end result may be a  hardship for that employee in the event of a health issue, or the employee may search for other employment due to this dissatisfier.

Now let’s throw another factor into the mix.  In a blog in the New York Times online recently, the blogger posted the idea that American insurance companies may go away altogether.  There are a couple of reasons given:  first , over 60% of working Americans are now covered by a company self-insurance plan.  Second, the new healthcare reform act, focusing on accountable care organizations, may significantly affect the reimbursement process for care.  The outcome may be that providers are reimbursed by patient, with bonuses for quality achievements.  Theoretically the providers will be focused on keeping the patient healthy to keep treatment costs down. Also there’s no need for an insurance “gatekeeper”, as the company or group of individuals will contract directly with the provider group for care. (Sounds a lot like the original HMO plan goals, without the insurer.  We’ll see!). 
So, best of luck to employer and employee alike!

On the other hand, the group “Skills for America’s Future” claims that there are 3 million jobs currently open and unfilled due to skill gaps. Fifty-two percent of employers with job openings claim they can’t find qualified applicants.   What if we just create more jobs we can’t fill?

An article in the Society for Human Resource Management (SHRM) news presents a lot of statistics, and also ways that HR Professionals and others are trying to help bridge that gap.  There seems to be three areas where companies and applicants need updating.

First – companies may be setting requirements for jobs that are not only unnecessarily stringent, they are unrealistic.  To address this, HR folks and upper managers are taking a closer look at the job descriptions they develop.  Admittedly, as I mentioned in the article addressing skill gaps for job seekers (Can Employers Find the Right Skill Set…?), companies are adding technology to increase efficiency in their organization.  This inherently requires a worker with higher tech skills.  The HR manager may be able to find quality applicants without the specific skill set, but with a background in the industry and an obvious ability and willingness to train for the new job.  Example – McDonald’s food chain developed a language skills training curriculum for new hires so they are able to better communicate with customers!  I have had discussions with local companies about this very topic – and made the suggestion that they may need to develop some training, and then can hire an experienced employee and bring them up to speed.

Second – Training skills aren’t always in every manager’s portfolio.  However, when there are 14 million people looking for work, and many of them experienced employees, it is worth spending some time to “train the Trainers” to keep up with the hiring needs of the employer.  In some cases local community colleges or professional societies such as SHRM are providing instruction in how to develop a training program and deliver it to new hires.  Hiring employers will need to recognize that there will be a little extra effort involved to get a new hire on the job and being productive.

Third – The job seeker needs to take the initiative to GET the needed training.  Again, local community colleges and universities are working with local companies to develop training programs that meet the needs of the new job market.  Local employment agencies and job postings can provide that information.  For the job seeker – let a prospective employer know that you are getting some training to meet the job requirements they list, and ask for feedback.  That may give you a head start in actually getting the position.
As always, good luck.

Employers are staying lean, and staff levels aren’t expected to increase much in the next months.  That means that the existing staff will have to respond to a wide variety of demands.  As workers shift around some of these positions may be available, but they may have changed significantly in breadth and skill requirements.  Employers also want workers who are able to adapt quickly to new responsibilities as companies try to stay competitive in a changing economy. 

Opportunities may be there in industries that the job seeker isn’t familiar with.  Economists do project growth in the health care market, professional services such as accounting and legal, retail sales and management and certain manufacturing jobs.  For each of these industries there are some special skill requirements or education.  Manufacturing may require some occupational training, but that can be accessed thru many community college programs.  The retail industry, sales in particular, requires interpersonal skills.

So, what is a job seeker to do?  Ideas presented in the article include highlighting the applicant’s creative skills to show their ability to adapt to new duties.  Technical literacy is really a basic must in most companies, including health care, where much of the business end of the industry is going automated.  If you are well versed in electronic data handling – they will want you! 

Project management and communications skills are abilities that are valued across many industries, and finding workers able to communicate clearly is getting harder to find among today’s applicants.  Job seekers need to work hard at honing their verbal and writing skills to differentiate themselves. 
Then, use marketing skills to get the point across.  Use social media (with taste and skill please) to reach prospective employers.  Understand in advance what the company values.  For example, a law practice will want to add skilled members that can bring in more business.  That asset is also valuable in other industries, so use your contact list appropriately.  Package your skills to show how you will add value to the organization – and be able to back it up with examples.  No “puffing”!
As always, good luck.

When the employees in a company are unprepared for their retirement years, they may work beyond the time they should retire.  This is a psychological blow for the employee, and has an effect on the org staffing plan as well.  Because the recent financial crisis has taken a bite out of peoples’ savings and retirement accounts, as many as 24% of workers are planning to work until after age 70.  There is also a significant increase in the number that feel they won’t be living comfortably in retirement.

For the company, there is a significant financial impact when employees work beyond their normal retirement age.  First, health care expenses for folks over 65 can be more than double the cost of insuring people age 45 -55.  In the case of work-related accidents, severity and time away from work can increase dramatically in the older employee.  Salaries and compensation tend to be higher in the more mature worker compared to younger employees with a similar skill set.  Some sources say that productivity drops…but there is an issue with the new grads and young employees on the same topic.  There is a problem, however when an employee is there because they have to be because they can’t retire.  There tends to be a drop off in energy and productivity for these folks.

There are things the organization can do to promote a culture of retirement readiness.  The first step is obviously to look at the level of participation in retirement plans by those nearing retirement age.  Then look at how many employees at all stages of their working life are utilizing the retirement benefits of the organization to the fullest advantage. 

As the company reviews the retirement culture in their organization, they need to evaluate the plan design to assure that employees have access to options that fit their needs, and that the company makes it easy for employees to contribute or participate.  Then – communicate.  The information needs to be geared to the various ages or work life stages of the employees.  Younger workers will have very different needs and views of retirement than a 55-year-old.  Provide easy response mechanisms such as “take action” cards that encourage them to respond.  Employees should also be offered financial consulting support from an outside source to provide them information for informed choices regarding their plans. 

If the company makes matching contributions, they should try to structure the matches to encourage savings.  As is to be expected, if the company matches up to 3% of the employee’s deferred salary, that is what they will contribute.  If the plan matches at 50% for the first 3% deferred salary, changing to a 25% match for the first 6% might change the participation rates and encourage more savings without adding costs to the company.

Obviously there needs to be continued evaluation of the entire retirement picture, with specific measures such as participation rates and average salary deferrals to track how well the plan is succeeding.  Success of the plan is greater success for the organization, and a better prepared workforce.

However, in areas of the country where there is job recovery, there seems to be another problem.  There is a significant gap between skills needed for these jobs and skilled workers ready to go to work. 

The SHRM article asked for responses concerning the skills deficits in job applicants for specific organizations.  A response from the Arlington, VA Workforce Investment Board said that in some cases job seekers just don’t know how to promote themselves.  When responding to the question “Why do you want this job” the applicant’s answer may be – “Because I want a job.”  Not a good way to highlight the skills a worker could bring to the company. 

Job seekers need to be aware that the current economic productivity is similar to levels reached prior to the 2007 -2009 recession, but there are millions more people out of work.  The good news is that 58% of companies that laid off workers during the recession are making direct replacement of those jobs. The bad news is that many of those jobs now require completely new skill sets.

The applicant needs to be able to separate him- or herself from the pack by highlighting the talents and skills they bring.  Recently there has been a change in the focus of the HR Recruiters from years of experience to actual skill sets available in the job seeker pool- reflecting the trend of changing skill requirements.

The really interesting issue highlighted by companies responding to the SHRM-posted question said that the most common skill deficiencies in applicants are 1) writing in English 2) math skills 3) reading comprehension and 4) speaking in English.  The cited language deficiencies could be easily addressed by applicants through local training organizations.  Students in secondary or post-secondary educational institutions need to be aware of these needs and be focused on heightening their skills going forward.

Hiring, or hunting for a job are stressful and difficult processes, and even with the right skills, or the right group of applicants the one thing we all need is persistence and a sense of humor.  Good hunting!

According to an article in the Society for Human Resources Management (SHRM) news, over 90% of U.S. organizations tie salary increases and bonuses to specific performance measures.  There was a study done by the Institute for Corporate Productivity (i4cp) that found high-performer organizations are more likely to use performance measures than the “low performers”. 

There is also a difference between companies saying they evaluate performance and companies doing so successfully.  Being successful depends heavily on identifying the appropriate drivers to use in the evaluation process, and clearly understanding these drivers.

The SHRM article said that high-performer companies were driven primarily by a desire to recognize and reward their best employees.  This desire also translates into needing to retain their best and brightest at a time when these folks may be a target for other organizations looking for new employees. As a secondary driver, the high-performer hoped to increase the likelihood of achieving corporate goals through their review program. 

In these times of tight budgets, very few of the companies studied identified the compensation budget as a driver for performance evaluations and raises.  During the 2009 downturn there was a general attitude among companies that if you kept your job, even if it meant a salary reduction, everyone was grateful.  Now, slowly, companies are able to give raises and bonuses, and are trying to do so effectively.

Interestingly, the i4cp study found that low-performing organizations put emphasis more on achieving corporate goals (in other words how well did the employee fit into that business vision).  While this might make sense, sometimes the best input you can receive from staff is why the goal/vision needs tweaking, and being able to provide new vision or innovation to achieve success.  Meeting corporate objectives and improving productivity are useful short term goals, but the best and brightest can see the broader picture and help the organization get there.

Research is being conducted by the Arrowhead Center at New Mexico State University. ER&A will conduct an educational inventory with the assistance of the New Mexico Public Education and Higher Education Departments. Ultimately, survey results and data will be provided to job seekers, educational institutions, business communities, and state agencies to help guide the State Energy Sector Partnership and Training grant efforts. (see below)
Another goal of the grant is development of the Mobile Green Jobs Workforce Center (MGJWC), whereby job seekers will have access to new computer workstations, software, and online services resulting from the Grant research utilizing this new resource. The MGJWC will be more responsive to the targeted population needs by making resources available to job seekers in all areas and communities with the most need, such as the state’s rural population, isolated Native American tribal areas, and other underserved communities. The MGJWC can also serve as a training center to promote workforce information and other topics at mass layoff rapid response locations around the state. All the data collected and outlined under this Grant will provide essential information to help stimulate the growth of New Mexico’s new green economy and help fill the job market void left by recent business contractions and closures.

State Energy Sector Partnership Program
The goal is to establish a statewide approach to job seeker training in renewable energy/energy efficiency occupations in solar, wind, green building/energy efficiency and biofuels.  These are identified as sectors active in the State with a potential for job opportunities in the future.  The oversight council, a subcommitte of the State Workforce Board will work to identify industry needs and job opportunities to make sure that training matches with the sector needs.
To be eligible for training candidates must be over 18 and 1) have a Social Security number, 2) have the right to work in the U.S., and 3) comply with Selective Service registration requirements (for males)
AND
Be included in one or more of the following groups:
1. An incumbent (currently employed) worker in need of skills upgrades for a solar, wind, biofuels, green building/energy efficiency green job;
2. A displaced (currently unemployed) worker ;
3. A woman;
4. A veteran or qualified spouses of a veteran;
5. A high school dropout; and/or
6. meet low-income eligibility guidelines.
To apply for this program complete the SESP training pre-application, available at the project website, www.greenjobs.state.nm.us,  and take it to your local Workforce Connection Center. Your nearest Workforce Connection Center can be found by visiting http://www.dws.state.nm.us/dws-offices.html.