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

Companies look for ways to thank employees and incentivize them – keep the team happy and productive!  One traditional reward has been the holiday bonus.  The bonus can come in many forms, from checks in various amounts (or sometimes the same amount for all) to in one case, a holiday turkey…
The problem is, this particular reward doesn’t have much lasting effect on employee morale, job satisfaction, or productivity.  In many cases it becomes perceived as part of the annual salary.  It can also cause resentment when everyone gets the same reward no matter how much they contributed to the company’s success that year.  In a case I’m familiar with, the executive team got significantly higher holiday bonuses, creating resentment among staff that felt those folks already had enough money for the holidays and it should go to the “worker bees”. 
A better idea, as suggested in an article on the Society for Human Resource Management website, is incentive pay based on meeting company goals.  A reward should align the growth and wealth-building of the company and its employees.  When companies develop the correct incentives, their growth and success can increase significantly.
This requires some groundwork.  The first, as always, is to clearly identify company goals for the short term.  These goals have to be quantifiable in order to use them as a guide for rewarding employees.  Then comes the hard part – identify specific behaviors or work that will help achieve these goals.  In addition, employees should articulate their particular goals as they relate to the business of the company. 
Company leaders should recognize that employees are motivated by similar elements—an atmosphere that encourages development, participation in the decision-making processes, opportunities for professional growth and a comfortable living now and the ability to increase their well being in the future.
So how to reward:  bonuses, deferred compensation, stock plans or other options?  This has to be defined by the leadership and be based on the company structure and financial situation. 
Finally, the reward program won’t be effective unless it is kept front and center in the business process.  It will only motivate if employees remember the commitments made and rewards available.  This type of program serves as recognition and appreciation of the individual effort to make the company more successful.
There is always opportunity to celebrate and appreciate the employees of the company en mass via luncheons or simple gift exchanges.  Bear in mind, however, that not everyone celebrates the holidays in the same way, and some not at all.  That’s another reason for not doing holiday bonuses!

Tags: employee benefits, employee morale, performance management

I have read numerous articles on the changing requirements of the job seeker – especially the newest generation of earners.  Some of the comments are not flattering – such as that the new wave of workers doesn’t really expect to have to show up to work every day, or that they expect to be paid exceptional salaries without any experience.  In reality there are good and not so good applicants in any generation.  One of the most commented – on wishes of today’s employee is more TIME.  When an applicant looks at a job opportunity, don’t be surprised if they look at salary and benefits, but also pay close attention to how much personal time/vacation time is included in the offer. 
In a  survey done by the Society for Human Resource Management(SHRM) earlier in 2011, 86% of the 550 respondents to the survey said flexibility – the ability to balance their work and personal life – is an important or very important aspect of job satisfaction.  Acknowledging the pressure of balancing personal needs and their work requirements, many employers are offering work flexibility to keep their best and brightest.  Others are using the flexible work arrangements to attract workers from their competitors!
There were actually awards given for workplace flexibility through a rigorous process developed by the Families and Work Institute.  One example – Turner Construction finds that listening to staff needs and communicating how important they are to the company resulted in a voluntary staff turnover rate of just 3.8%.  Employees surveyed feel they were being heard (an increase of from 59% in 2005 to 72% in 2011), and management  evaluations include a section on how well they promote flexible work options.  There are such perks as Friday afternoons off in the summer, even though it is a peak time for their industry. 
Another company, Ben Secours Health System, has used a variety of flexible work schedules for years – partly because of a shortage of health care workers, and partly because many departments require 24-hour coverage.  Employees can work compressed workweeks or either four 10-hour shifts or three 12-hour shifts a week.  There is enhanced pay for weekend hours, and many more.  Because women make up 85% of the workforce and women are still the primary caregiver in a majority of family units, these options are especially important in meeting staffing needs.
Even in the factory (Futura Industries in Utah) there are opportunities.  At Futura 85% of the employees take advantage of flexible work times without sacrificing pay.  Employees are cross trained, and managers can decide if they need to backfill when an employee needs some time off or if they can work with one less for that time. 
It seems that investigating flextime options can be an important factor in the success of a company to hire and retain their workforce.  Check it out!

Tags: employee benefits, employee morale, Hiring Trends

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