If you check out any HR news at all, you will notice that the new healthcare rules are frequently cussed and discussed.  The new goals for health coverage create difficulty for employers because there are a lot of unknowns for them. 
A new development in employer health benefit programs is a “tiered’ system for premiums.  This new system has become more prevalent, according to an article in the Society For Human Resource Management News, because of the new regulation concerning coverage of adult children.  Employers are trying to find ways to share the increased cost of providing coverage for employees’ adult children up to age 26. 

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!

Tags: employee benefits, healthcare benefits

The retirement topic is an important one right now, partially due to layoffs and downsizing in companies.  A research article on “The Society for Human Resource Management” website highlights problems and considerations when dealing with this topic.

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.

Tags: employee benefits, retirement options, staffing plans

For those climbing the corporate ladder, you need to be prepared for what is ahead.  Being part of the “Executive Suite” is essentially a whole new game – not at all like you’ve experienced before.  Leaders in the organization would be ahead to spend some time with new executives, describing the lay of the land. 

For the new senior executive, the perks are great, the responsibilities critical to the success of your company, and you are making great money.  That’s the good part.  The challenge is to stay there and succeed in the new role!

An article on this topic by Jim Swanson, senior director for the American Bar Association and former CEO for USAF Legal Operations was published in the online news, December 2011, for the Society for Human Resource Management.  In it he outlines some of the differences as one assumes a leadership role.

One of the most significant differences might be obvious, but requires some thought.  The new Big Bosses are a very different group than those in middle management.  These people have a whole world of “bosses” to report to, including their board, shareholders, customers, and even Government.  Their work schedules are generally 24-7, and their time is always stretched.  Therefore a big part of your job is to communicate efficiently.  A quote from a former boss of mine – “Be brief, be bright, be gone.”  -might apply here.

Your attention and time will also be spent primarily on solutions to the overall company goals.  Your focus should be always on the results, without getting tangled in the details and processes of your internal organization.  Failing to deliver is a sure definition of failure in your boss’s eyes.  You also need to steer clear of turf wars or spending time on personal status issues.  These are NOT productive.

Don’t bring problems – bring solutions.  If you simply bump tough problems up to your boss, you are not providing value in the role.  If it is necessary to bring an issue to the Boss, be prepared with solutions and courses of action that are in line with the “big picture” as the Boss sees it.  This means that you have to be constantly aware of the current situation in the company so pay attention.

Executive suite language often requires interpretation.  The Boss doesn’t criticize in public, and speaks much like a diplomat – oblique and highly civil.  It is for you to understand underlying messages. In public settings, compliments are “diplomatic” and you shouldn’t read too much into them.  In one on one communications, compliments with a “but” in the conversation may be an expression of concern so listen carefully to the comments.  Also, any time the Big Boss makes a suggestion or mentions something more than once, take it as “Do it ASAP”. 

Finally, get used to NOT getting a lot of strokes from the CEO.  Also get used to criticism, as it is part of the territory.  There is usually not much time for coddling – the fact that you are still in the executive suite is reward enough.

For the “Big Boss” – help your new execs prepare for the role, and you will have a much more productive and stable group to support your success.  Good luck.

Tags: change management, Executive jobs, performance management

Right now Congress is battling about how to resolve the budget deficit.  Some might argue that the most important issue to improve our economy is to get Americans back to work.  According to an article in the Society For Human Resource Management’s HR News, economists suggest that jobs should have been the focus of the Super Committee all along.

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!

Tags: applications, hiring talent, Hiring Trends, job seeker attitudes, retraining

2011 New Mexico Employer Summit

You are invited to attend the 2011 New Mexico Employer Summit on Thursday, November 17, 2011 at Hotel Albuquerque from 7:30 a.m. to 12:30 p.m. Panels and discussions during this half-day event will include:
-  “How to Align Business Practices with Unemployment Insurance Policy”
-  “Readily Available Business Resources and Services”
-  “How Employment & Labor Laws Apply to Your Business”
Advanced registration is required and seating is limited. Registration is $25 per person. To register, please call Rosanna at the Albuquerque Hispano Chamber of Commerce, (505) 842-9003, ext. 110 by November 3, 2011. For more information, please call (505) 841-8690 or visit the 2011 New Mexico Employer Summit website at
www.dws.state.nm.us/employersummit.

Tags: employee benefits