IRS increases 2020 HSA limits
Recently, the Internal Revenue Service (IRS) announced an increase in the annual limit on deductible contributions to HSAs. The annual limit will increase by $50 for individuals and $100 for families in 2020. Continue reading this blog post for more on this increase to HSA limits.
Employees will be able to sock away some extra money into their health savings accounts next year.
The annual limit on deductible contributions to an HSA will jump by $50 for individuals and $100 for families next year, the IRS announced Tuesday.
For 2020, the annual limit on deductible contributions will be $3,550 for individuals with self-only coverage, a $50 increase from 2019, and $7,100 for family coverage, a $100 increase from 2019.
The minimum deductible for a qualifying high-deductible health plan also will increase to $1,400 for self-only coverage and $2,800 for family coverage.
Annual out-of-pocket expenses will see an even bigger jump next year. Deductibles, copayments and other amounts that do not include premiums will have a maximum limit of $6,900 for individual coverage next year, up from $6,750 in 2019, and $13,800 for family coverage, up from $13,500 in 2019.
HSA enrollment continues to grow, especially as employees look at the accounts as a way to save for medical expenses in retirement. The number of HSAs grew 13% over the past year to top 25 million, according to research firm Devenir, while assets grew 19% to $53.8 billion. Devenir projects the number of HSAs to hit 30 million by 2020, with $75 billion in total assets and $16.7 billion in investment assets.
More employers are also offering employees contributions to their accounts. Indeed, the average HSA employer contribution rose to $839 last year, up 39% from $604 in 2017, according to Devenir. All told, employer contributions totaled almost $9 billion last year.
HSAs also saw a boon this year with Amazon’s decision to allow consumers to use the accounts to buy thousands of items on its site, a move that was ballyhooed as a positive for HSA customers, as well as Amazon. Items will be listed on Amazon as “FSA or HSA eligible” on the individual product pages; a full list of items can also be browsed on Amazon’s website.
“By accepting HSA dollars, Amazon is finally giving this untapped savings tool its moment to shine,” David Vivero, co-founder and CEO at Amino, an employee financial wellness platform, wrote recently in an Employee Benefit News blog. “Every payment method or currency — whether it’s dollars, airline miles, bitcoins or credit cards — depends on reliable large-scale merchant acceptance to become truly mainstream.”
Amazon’s chief competitor, Walmart, allows consumers to use HSA and FSA cards to purchase medical items, as well.
HSA contribution limits are updated annually to reflect cost-of-living adjustments. The increases are detailed in Revenue Procedure 2019-25 and take effect in January.
SOURCE: Mayer, K. (28 May 2019) "IRS increases 2020 HSA limits" (Web Blog Post). Retrieved from https://www.benefitnews.com/news/irs-announces-2020-hsa-limits
Do career fairs still have value?
Are you participating in career fairs? Now more than ever, employers need to sell themselves to their potential hires. Continue reading this blog post to learn if career fairs still add value to recruiting.
In today's tight applicant market, job seekers are in charge. To meet their demands, recruiters have set aside old red flags and even some traditional sourcing methods. But do career fairs still make the cut?
Candidates want to be courted and, now more than ever, employers need to sell themselves to potential hires. Many young candidates, in particular, hope to land at a cutting-edge company — and a booth at a job fair may seem a bit old fashioned unless employers make a few modifications. Though a career fair is not always enough on its own, many employers have found ways to use this old-school technique to send today's job seekers the right messages about their organizations.
Do career fairs actually net hires?
Vicki Salemi, career expert for Monster, doesn't think job fairs are an effective use of employer resources. "Generally speaking, career fairs — as a standalone — do not net talent," she told HR Dive in an email. "For the job seeker, it can be challenging to stand out among stacks of resumes and, for the employer, it's not time well spent." A former financial services corporate recruiter, she said she rarely made a hire from a fair.
But they can be useful for specific industries, roles and skill sets, she added. Employers can maximize the potential of a job fair by using them in conjunction with other innovative hiring solutions as part of an integrated hiring mix. "One way employers can maximize their time at a career fair is to pre-screen resumes of candidates so that they can arrange on-site interviews," Salemi said.
Mike Cooke, account executive at Montage, said that the traditional career fair has become outdated. "Consider the amount of time and money that is typically spent on a traditional career fair," he said to HR Dive in an email. Costs can include sponsorship fees, travel expenses and swag, plus the amount of time recruiters are spending at the event and sifting through resumes received — often with little positive return on investment. "Additionally, if a company isn't able to engage candidates' pre-event, the recruiter could very well be spending face to face time with a candidate that isn't a fit," he added.
Fairs can be a challenge for candidates, as well, Salemi said: "It's often hard to make an impact with a 30-second introduction to each employer — and that can be draining." Generally, recruiters should look at the career fair as only one aspect of their hiring toolkit.
Raising awareness instead of reaping resumes
For many businesses, career fairs offer an opportunity to showcase what they do and how job seekers can be a part of the team. They can illustrate what may be available to both students and those looking to change their career trajectory, particularly for employers offering jobs that do not require a traditional degree. For organizations not known as a hiring player in certain disciplines, especially tech, exposure can offer options. At a tech-oriented career fair, employers who may not have been considered in the past by any tech workers can entice them to look closer to home before jockeying for a slot in Silicon Valley.
"Career fairs are a valuable way to drive awareness for companies across a large subset of potential talent," Mike Rogers, senior director of maintenance and refrigeration at Tyson Foods, told HR Dive in an email. For Rogers, awareness is invaluable; industrial maintenance, a trade specialty with 85 different skills, has a critical skills gap. Nearly 40% of his maintenance and refrigeration hourly team members are 50-years old or older, keeping his team on the hunt for ways to build out the talent pipeline for trade-focused jobs.
Tech takes career fairs to the next level
To offer today's job seeker the recruiting experience they want, virtual career fairs are taking off. Connecting through video saves candidates and employers time and money. Individual connections are made in a private setting, without others vying for attention. These types of fairs cast a wider net to help meet inclusion efforts as well, Cooke said. "Virtual career fairs allow recruiters to reach a larger and more diverse pool of candidates — including students located on smaller and more rural campuses — that they wouldn't normally have access to due to time, cost and travel restrictions."
Joe Milner, talent acquisition manager at Pearson, worked with Montage's recruiting technology for their own virtual career fair. To attract a more diverse level of qualified entry-level talent, their hiring managers were able to interview a number of candidates at a quick pace. "Because they were able to talk with such a wide variety of candidates, our hiring managers were able to make job offers to candidates they normally wouldn't have spoken with or even considered at a traditional job fair or through other recruiting tactics," Milner said in an email.
The other experts agreed. Virtual career fairs save time and money and can be an effective way for employers and job seekers to connect, Salemi said, and while they don't work well as a stand-alone strategy, an integrated hiring mix is incomplete without them. Gen Z candidates are digital natives, so meeting these job seekers where they're already living — on their mobile devices and laptops — will be the best approach in attracting them to your company, Cooke added.
SOURCE: O'Donnell, R. (20 May 2019) "Do career fairs still have value?" (Web Blog Post). Retrieved from https://www.hrdive.com/news/do-career-fairs-still-have-value/554107/
Who Can I Name as a Beneficiary on My Life Insurance Policy?
Wondering who you can name as a beneficiary on your life insurance policy? A beneficiary is usually the person or people who will receive your life insurance payout after you die, but it can also be a trust, charity or your estate. Read this blog post to learn more.
First off, great job on buying life insurance! You took an important step by protecting the ones you love.
Every life insurance policy requires you to name a beneficiary. A life insurance beneficiary is typically the person or people who get the payout on your life insurance policy after you die; it may also be a trust, charity or your estate.
You can also name more than one beneficiary, as well as the percentage of the payout you want to go to each one—for instance, you could designate 50% to a spouse and 50% to an adult child.
You’ll typically be asked to pick two kinds of beneficiaries: a primary and a secondary. The secondary beneficiary (also called a “contingent beneficiary”) receives the payout if the primary beneficiary is deceased.
Providing for Kids
A big reason why people buy life insurance is to provide for children left behind. Usually this is done by making the surviving spouse or partner who cares for and is raising the kids the beneficiary. But what if you’re widowed or—God forbid—-both you and your partner pass away at the same time?
First, know that it’s not a good idea to name a minor as a beneficiary. That’s because the law forbids life insurance payouts to anyone who has not reached the age of majority, which is 18 to 21 depending on your state. If a child were to be named, then it would be turned over to probate court. The court will name a guardian who has oversight of the money/estate until the child comes of age.
Fortunately, there are two options. The first is to name an adult custodian. The custodian should be someone you can trust to use the money for things like housing, health care, and education until the child reaches the age of majority. At that point, any remaining money gets turned over the child and they can spend it any way they want.
The second option is to work with an attorney to set up a trust. In this scenario, the trust is the beneficiary and a trustee is named to manage and distribute the funds. The main advantage of a trust over naming a custodian is having more control.
A trust lets you specify how you want the money distributed—and it lets you do so even when your kids are adults. (One quick word of caution: Definitely consult with an attorney if you’re setting up a trust for a special needs child. They can help you create one that doesn’t impact your child’s eligibility for government assistance like Medicaid or Supplemental Security Income.)
Naming a Charity
Do you have a cause that’s near and dear to your heart? If so, you might consider naming a charitable organization as the beneficiary of your life insurance.
There are several ways to do this. They include naming the charity as a beneficiary on a new or existing life insurance policy, making the charity both the owner and the beneficiary of a life insurance policy, adding a charitable-giving rider to a life insurance policy, or working with a community foundation to figure out the best way to distribute a payout.
Final Tips
Think carefully about naming your estate as a beneficiary. This can trigger a long and costly legal process known as probate. A faster and more efficient solution is to name specific individuals or organizations as beneficiaries.
1. Get specific. Instead of naming “my spouse” or “my children” as beneficiaries, list their names along with their addresses and Social Security numbers. This saves a lot of time since the insurance company doesn’t have to track down information.
2. Always name a contingent beneficiary. Passing away and leaving behind life insurance without a living beneficiary could mean the payout goes to someone you never wanted your policy to benefit. It could also require a court-appointed administrator to sort things out.
3. Pick trustworthy custodians and trustees. Really consider who’d you trust your child’s financial well-being with if you weren’t in the picture. Your kids may love their uncle or aunt, but is he or she mature and responsible with money? If not, pick someone else who is.
4. Regularly review your beneficiaries. It’s a good idea to review your beneficiaries about once a year and after major life events like a marriage, divorce, the birth of a child, or a death in the family.
5. Communicate your wishes. Let your beneficiaries know your intentions and how to find the policy.
6. Be aware of special situations. There are some situations that could trigger a tax on the life insurance benefit—for instance, when the policyholder and the insured aren’t the same person. Likewise, things can get sticky if you live in a community property state and don’t name your spouse as a beneficiary. An insurance agent can give you life insurance advice on this and much more.
SOURCE: Austin, A. (29 April 2019) "Who Can I Name as a Beneficiary on My Life Insurance Policy?" (Web Blog Post). Retrieved from https://lifehappens.org/blog/who-can-i-name-as-a-beneficiary-on-my-life-insurance-policy/
Insuring the Times of Your Life
Do you have life insurance? According to the 2019 Insurance Barometer Study, by Life Happens and LIMRA, 43 percent of adult Americans do not have life insurance. Read this blog post to learn more.
Preston Newby was a youth minister. He and his wife, Tara, were driving with their son to visit family—excited to announce a new baby on the way. In the keeping with the kind of person Preston was, he stopped to help at the scene of an accident. That’s when he was struck by another car and killed. He was only 24.
Fortunately, this young couple had done their planning and had bought life insurance. So despite the emotional upheaval that Preston’s death caused, Tara, a stay-at-home mom, and her two sons were able to carry on financially as they had before. You can watch their story here.
How many other people have prepared like this for the unexpected? Unfortunately, not enough: 43% of adult Americans don’t have life insurance, according to the 2019 Insurance Barometer Study, by Life Happens and LIMRA.
Many people think, “I’m young. That won’t happen to me.” Statistically, they may be right. However, they could be up being one of the statistics. You just don’t know—and that’s the problem. The solution is life insurance.
If you have people you love and who depend on you, or you have financial obligations to meet, you need life insurance to protect against the “what ifs”—at every stage in life. Here are just a few reasons you may need life insurance, or more of it, throughout your life.
Single with no children: You may think you don’t need life insurance since you have no dependents, but if you owe money, you need it. It ensures that your debts, including student loans and funeral expenses, won’t be passed on to your family. Additionally, if you are taking care of aging parents or a special-needs sibling, or know you will in the future, life insurance is a smart way to make sure that care can continue uninterrupted.
Married or partnered: As you begin your lives together, you’ll likely incur joint financial obligations like buying a home, in addition to monthly bills. It makes sense to protect your spouse or partner with adequate life insurance. It’s also a smart move to get coverage in place now if you plan on having a family in the future.
Parents with children: If you’re in the midst of this stage, financial obligations abound. Many couples rely on two incomes to make ends meet and single parents may be their children’s one-and-only. Life insurance is critical at this point. When figuring out how much you need, remember that the economic impact you have on your family can be measured not just by how much you earn now, but by how much you’ll earn over the course of your working life. Life Happens’ Human Life Value Calculator can help you figure out what that will be.
Empty-nesters/retirees: Your kids are on their own and your mortgage is paid off, so you may think you don’t need life insurance. However, if you are still building your retirement nest egg, life insurance ensures that if something happens to you that your spouse or partner can still live comfortably in retirement, despite any shortfalls.
Keep in mind, life insurance is a simple answer to an important question: Would anyone suffer financially if I were to die. If the answer is yes, it’s time to sit down with an insurance professional.
SOURCE: Leyes, M. (13 May 2019) "Insuring the Times of Your Life" (Web Blog Post). Retrieved from https://lifehappens.org/blog/insuring-the-times-of-your-life/
Fresh Brew with Alesha Mack
Welcome to our brand new segment, Fresh Brew, where we will be exploring the delicious coffees, teas, and snacks of some of our employees! You can look forward to our Fresh Brew blog post on the first Friday of every month.
“The first piece of advice I would give is to be patient because some people are unsure of what exactly they are asking. Also, remain calm and attentive. Lastly, SMILE!”
Alesha Mack is a Client Service Manager and oversees the Client Service Team at Saxon Financial Services.
Alesha has three children who are the light of her world. In her free time, she enjoys exploring new activities with them and one day plans to travel the world together.
Caramel Macchiato from Starbucks
“I love this coffee because it is sweet but has a nice kick to it to help me get through my mornings!”
Coffee Cake from Wyoming Pastry Shop
Alesha loves snacking on a coffee cake from Wyoming Pastry Shop. View their website here.
Give It A Try & Share It!
Extended reality promises a holistic training experience, experts say
Are you utilizing augmented reality, virtual reality or extended reality in your training programs? More employers are embracing the use of virtual environments for employee training and development programs. Continue reading to learn more.
As more employers embrace virtual environments for training, tech gurus are fine-tuning the technology to be more accessible to employers. Some organizations have developed apps to take employees through soft skills training; others customized VR experiences to suit their specific training needs.
As the potential of AR and VR technology continues to unfold, and workforces reap benefits from using it, employers will need to decide how to best implement the tech in their own learning and development initiatives.
Why merge AR, VR and L&D?
When it comes to virtual training, XR (extended reality, which includes VR and AR) may the best option for employers with tricky needs, according to Toshi Anders Hoo, emerging media lab director at the Institute for the Future. "XR training is valuable in situations when the experience is too expensive, too far away, too infrequent or too dangerous," he told HR Dive. "It allows users to experience pretty close to what it's like, and that includes the physical and psychological experience."
XR isn't just for standard operating procedures, Anders Hoo added; it creates a holistic understanding, providing emotional preparedness for difficult situations. He cited Walmart's well-known VR training, which prepped employees for Black Friday shopping, but noted that the applications can be even more varied. XR can acquaint learners with the emotional experience of public speaking, uncover hiring biases or replicate the pressure of a surgical operating theater, he said.
AR and VR can also help employers better understand workers' strengths and weaknesses, Amy Vinson, associate director, safety analytics, health and safety at Tyson Foods told HR Dive in an email. It can also enforce better, safer working habits. "[Trainees] can put on goggles and virtually practice operating our plant's robotic arm to safely stack heavy boxes in high areas," she said. "It helps team leaders better understand training areas that may require extra attention."
XR can also be "an empathy engine," Anders Hoo noted, by providing anyone with a perspective on an unfamiliar challenge. "Consider a medical emergency: the learner can be the doctor, watching a patient bleed, or a loved one, helpless to assist. These scenarios have major implications for critical thinking and to help learners expand their points of view."
How does it work for learners?
The biggest challenge for classroom learning is retention, according to Shawn Gentile, training content development and delivery leader at Vitalyst, because the majority of knowledge is lost over time. Simulation-based learning, however, can be done continuously, said Gentile; "Learners can go right back into the simulation and continue to build on their competence.
And when L&D pros are examining why training is or isn't working, the tech can eliminate some of the guesswork, he said. "With simulation-based training, you can see where they're not learning and why, targeting learning points to increase retention." Accessing this data removes deviation points and allows training to focus on the organization's objectives, he added. Uniformity is another consideration: Different instructors may perform training differently, but the consistency of AR and VR training provides better knowledge, higher retention rates and a better ability track failures and update training to meet objectives, according to Gentile.
Anders Hoo said that XR, unlike video-based training, is more than the mere "illusion of learning." Videos can give learners the false perception the task they're learning will be as easy in real life as it looks, which can create performance gaps and discourage some, Anders Hoo said. However: "If you show someone a video of someone juggling," he said, "but they're holding the juggling club, they're much less likely to be discouraged when trying to learn the skill."
Forecasting the future
One concern to consider, according to Anders Hoo, is data privacy. XR captures biometric data that can identify a person by how they move their hands and head. In a one-hour VR session, he said, thousands of data points are captured that can potentially be used to later identify someone in, for example, a surveillance camera. Next-generation XR will have eye tracking capabilities and may even be able to track your heart rate and emotional state, he said. "The same systems that allow us to have more immersive experience are the same that make for very sophisticated surveillance systems," he said. As with all new HR tech, L&D pros will have to remember to ask the right questions.
For Anders Hoo, one of the most interesting things about this futuristic tech is that it's really not new at all. It was adopted in the early twentieth century for flight simulations. Almost 100 years later, it's still seen as the newest thing because developers have begun to iterate on it more. "People overestimate the impact of tech in the short term," he said, "and underestimate its impact long term."
SOURCE: O'Donnell, R. (21 May 2019) "Extended reality promises a holistic training experience, experts say" (Web Blog Post). Retrieved from https://www.hrdive.com/news/extended-reality-promises-a-holistic-training-experience-experts-say/554872/
Working from home for medical reasons poses challenges for employers
Did you know: There has been an 11 percent increase in remote work since 2014, according to SHRM. This increase in remote work is posing new challenges for HR teams when the request is due to medical reasons. Continue reading to learn more.
While working from home has become much more popular in recent years – an 11% increase just since 2014, according to SHRM – this can pose challenges for HR teams when the request is due to medical reasons.
Even if your workplace has guidelines for remote workers, requests to telecommute as an accommodation must be carefully reviewed to assure you’re in compliance with ADA regulations
The ADA prohibits discrimination in employment based on disability, and requires employers to provide reasonable accommodations to applicants and employees. A reasonable accommodation entails any changes in the work environment, or in the way things are customarily done, which enables an individual with a disability to enjoy equal employment opportunities.
In these cases, it’s important for both the HR rep and a physician to gather information about the accommodation request to gauge if telecommuting is medically necessary or simply a personal preference.
The HR rep needs to gather specific information from the employee, including the following:
- Explanation of why it’s medically necessary to work from home
- The essential job functions the employee finds challenging to perform in the office
- The duration of the request to work from home
- Whether telecommuting for a period of time enables the employee to return to work in the office and perform essential functions of the job
- Confirmation that they have a dedicated workspace with phone, Wi-Fi and other essential technology
Meanwhile, the physician should gather certain information from the HR rep, including:
- A description of the medical condition
- How working from home will help the employee better manage that medical condition and perform the essential job functions
- The restrictions (things the employee cannot do) and limitations (things the employee should not do)
- Why the employee can work from home but not in the office
- How long the employee will require the accommodation (short or long term)
- Likelihood that the employee will ever be able to perform their essential job functions from the office
With more offices adopting an agile model with open workspaces, employees now have more natural lighting, feel less cramped and have more opportunity for collaboration with their colleagues. However, these advantages to many people can be challenges for others.
Light and odor sensitivity, as well as distractions, are some of the most frequent triggers of medical conditions that drive the need for accommodations. In many cases, some simple modifications to the workplace can help solve or alleviate some of the employee’s challenges.
Light sensitivity, or photophobia, is intolerance to light, which can cause a painful reaction to strong lighting. Adjustments can be made to help alleviate this, including head lighting modifications, window shading, cubicle shields for fluorescent lights, polarized glasses and/or prescription eyewear.
Odor sensitivity is another common issue in open workspaces – especially for employees who previously were in a contained space with infrequent interaction with colleagues. Consider workplace signage prohibiting perfume or cologne in the office, enforcing a fragrance policy, air purifiers throughout or in select areas, a transition to scent-free cleaning products, or upgrading the ventilation system in the office to allow more air flow. For food smells, ask employees to eat in a designated area and not bring food to their workspace.
Distractibility is the inability to sustain attention or attentiveness to one task. With agile workspaces often involving moving around frequently or being positioned in a high-traffic area, this can be challenging to some employees. Consider providing noise-canceling headphones, white noise machines, cubicle shields, noise barriers or an adjustment to the office configuration. Consider allocating space within the open work plan that’s off-limits for meetings and away from heavy foot traffic.
While agile workspaces have many benefits, they can pose challenges to your workforce. It’s your responsibility to work with employees to accommodate medical requests which may result from light sensitivity, distractions or even odors. Following these simple tips can help assure a healthy, happy and productive workplace for your team.
SOURCE: Holliday-Schiavon, K. (23 May 2019) "Working from home for medical reasons poses challenges for employers" (Web Blog Post). Retrieved from https://www.benefitnews.com/opinion/remote-work-for-medical-reasons-challenging-for-employers
3 summer workplace legal issues and how to handle them
Issues such as hiring interns, dress code compliance and handling time off requests can cause legal issues for employers during the summer months. Continue reading this blog post for how to handle these three summer workplace legal issues.
Summer is almost here and with that comes a set of seasonal employment law issues. Top of the list for many employers includes hiring interns, dress code compliance and handling time off requests.
Here’s how employers can navigate any legal issues that may arise.
Summer interns
Employers looking to hire interns to work during the summer season or beyond should know that the U.S. Department of Labor recently changed the criteria to determine if an internship must be paid. In certain circumstances, internships are considered employment subject to federal minimum wage and overtime rules.
Under the previous primary beneficiary test, employers were required to meet all of the six criteria outlined by the DOL for determining whether interns are employees. The new seven-factor test is designed to be more flexible and does not require all factors to be met. Rather, employers are asked to determine the extent to which each factor is met. For example, how clear is it that the intern and the employer understand that the internship is unpaid, and that there is no promise of a paid job at the end of the program? The non-monetary benefits of the intern-employer relationship, such as training, are also taken into consideration.
Though no single factor is deemed determinative, a review of the whole internship program is important to ensure that an intern is not considered an employee under FLSA rules and to avoid any liabilities for misclassification claims.
Companies also should be aware of state laws that may impact internship programs. For example, California, the District of Columbia, Illinois, Maryland and New York consider interns to be employees and offer some protections under various state anti-discrimination and sexual harassment statutes.
All employers should be clear about the scope of their internship opportunities, including expectations for the relationship, anticipated duties and hours, compensation, if any, and whether an intern will become entitled to a paid job at the end of the program.
Summer dress codes
Warmer temperatures mean more casual clothing. This could mean the line between professional and casual dress in the workplace is blurred. The following are some tips when crafting a new or revisiting an existing dress code policy this summer.
If the dress code is new or being revised, the policy should be clearly communicated. Sending a reminder out to employees may be helpful in some workplaces. In all cases, the policy should be unambiguous. List examples to make sure there is no confusion about what is considered appropriate and explain the reasoning behind the policy and the consequences for any violations.
To serve their business or customer needs, companies may apply dress code policies to all employees or to specific departments. They should also make sure the dress code does not have an adverse impact on any religious groups, women, people of color or people with disabilities. Company policies may not violate state or federal anti-discrimination laws. If the policy is likely to have a disparate impact on one or more of these groups, employers should be prepared to show a legitimate business reason for the policy. Also, reasonable accommodations should be provided for employees who request one based on their protected status. For example, reasonable modifications may be required for ethnic, religious or disability reasons.
Finally, failure to consistently enforce a neutral dress code policy or provide reasonable accommodations can expose a company to potential claims. As always, dress codes and any discipline for code violations should be implemented equitably to avoid claims of discrimination.
Time off requests
Summer time tends to prompt an influx of requests for time off. Now is a good time to review policies governing time off, as well as the implementation of those policies to ensure consistency. Written time off policies should explicitly inform employees of the process for handling time off requests and help employers consistently apply the rules.
An ideal policy will explain how much time off employees receive and how that time accrues. It also will include reasonable restrictions on how time off is administered such as requiring advance approval from management, and how to handle scheduling so that business needs and staffing levels are in sync.
Most importantly, time off policies and procedures must not be discriminatory. For instance, if a policy denies time off or permits discipline for an employee who needs to be out of the office on a protected medical leave, the policy could be seen as discriminating against employees with disabilities. Companies should train their managers on how to administer time off requests in a non-discriminatory manner. Employers generally have the right to manage vacation requests, however protected leave available to employees under federal, state and local laws adds another layer of complexity that employers should consider when reviewing time off requests.
To minimize employment issues this summer and all year around: plan ahead, know the relevant employment laws and train managers and supervisors to apply HR best practices consistently throughout the organization.
SOURCE: Starkman, J.; Rochester, A. (23 May 2019) "3 summer workplace legal issues and how to handle them" (Web Blog Post). Retrieved from https://www.benefitnews.com/opinion/how-employers-can-handle-summer-workplace-legal-issues
Considering Retirement But Getting Cold Feet?
Are you nearing retirement age but getting cold feet about retiring? Many consider their financial state when deciding when they should retire but there are some other factors you should take into account. Read this blog post from SHRM for factors to consider when deciding the timing of retirement.
I’ve been with the same company for the last 15 years and I’m nearing early retirement age. I always assumed I would welcome this but - like a dog finally catching that car it’s been chasing for years- now that the time has come, I'm getting cold feet. I feel like I’m financially ready, but my gut is telling me “Don’t do it yet”. My employer is supportive either way, although I sense some colleagues would welcome the promotion opportunities that would open up when I leave. What factors should I consider when deciding the timing of retirement?
Many people base their decision to retire solely on the state of their finances. If this isn’t a factor in your decision, congratulations, you’re among the lucky few. So, let’s consider the other factors.
First, I would promptly set aside whether your coworkers want you to hurry-up-and-retire-already for their own career opportunities. That’s understandable but I would not let that weigh heavily –if at all- in your decision.
Second, I would concentrate on what your gut is telling you. I believe in following one’s gut, but not blindly. For me, gut feelings are flags for things that should be examined. It’s your mind and body letting you know, “hey, you should pay attention to this”, dig on this spot, explore where these feelings are coming from and where they point to.
For example, you could be over identified with your professional-self and your personal-self may feel vulnerable without having a professional role. This is especially true if you have a fancy title or you think you’re somebody. It can be unsettling to become just one more retiree ordering the early bird special.
So, what’s the antidote?
Well, you should have the first year of your retirement life planned out as carefully as you’d plan a mid-career hiatus. Consider: Where you’re going to go everyday; who you’re going to hang with; what hobbies you’re going to pick up; which boards you’ll volunteer for; what causes you’ll join; what you’re going to wear and what schedule you’re going to keep.
I think once you have a clear picture of “who” and “what” you are going to be when you retire, perhaps your gut will feel more comfortable and instead of telling you “Don’t do it yet” it may tell you “What are you waiting for?”
Originally posted on HR Box.
SOURCE: Del Rio, E. (13 May 2019) "Considering Retirement But Getting Cold Feet?" (Web Blog Post). Retrieved from https://blog.shrm.org/blog/considering-retirement-but-getting-cold-feet
Your bad work environment may be raising your healthcare costs
A growing amount of research is documenting a relationship between stressful work environments and a range of chronic conditions. Research is also finding a link between employee health and employee job performance. Continue reading to learn how your work environment could be raising your healthcare costs.
If you want to reduce the cost of healthcare for your employees — while simultaneously improving care — you may need to take a serious look at your work environment. When reviewing areas that could help reduce costs, a much overlooked aspect is a stressful work environment.
While employers have done a lot to reduce the risk of potential injuries in the workplace, they have done far less to reduce stress, which could also be harmful.
Research finds a link between employee health and job performance. There also is a growing body of research documenting the relationship between a stressful work environment and a range of chronic conditions — including depression, hypertension and sleeping problems. But employers often struggle to connect the dots between these health concerns and supporting a healthy environment for employees.
It’s difficult, if not impossible, to manage something that remains unmeasured. That’s why measuring outcomes beyond healthcare cost fluctuations, such as absence, periods of work disability and job performance, can help employers understand a broader range of outcomes important to the successful operation of their business.
When employers ask how they can affect the health of their employees, I ask what they know about the working conditions in their organization. Is there management trouble, high turnover, high illness-related absence or low job satisfaction? Some of this can be determined from employee satisfaction surveys, or analyses of sick leave data and work disability claims. Often, even more can be discovered by gathering employee feedback.
For example, listening to employees, equipping them with the knowledge to recognize safety issues and providing the tools or procedures to correct these issues, were key to improving workplace safety. A successful safety review can result in real change. Employees observe this change and a cycle is created where prevention becomes the focus because all are accountable and all have trust based on experience that their identification of potential or real safety issues will be dealt with effectively.
If employers are unaware of the factors in their own work environment that could be modified to lessen psychosocial stressors, a good place to start is by listening to employees. Many employers already conduct job satisfaction surveys or health risk appraisals that provide some information around work and health issues. These same tools could be used to identify and address psychosocial issues in the workplace.
Whatever the channel — a suggestion box, a designated HR representative, a focus group, a survey — it must provide employees with the opportunity to authentically and safely share their perspectives. And, finally, it must be demonstrably legitimate, resulting in employer actions that are clear and meaningful to all.
Typically employers use health and wellness programs in an attempt to remediate rather than prevent illness. Our interviews with medical directors of some of the leading U.S. corporations revealed a similar finding. Often, the medical director or chief health officer is charged with improving employee health, while the HR benefits manager is charged with reducing healthcare costs. Not surprisingly, these two goals can be at odds with each other. Imagine the company with a large percent of untreated depression.
So how can employers know what works or even what to try?
Evaluators often start their work by asking why particular activities, services or coverage types were chosen or implemented. This helps identify those areas more proximal to the employment setting (something about the job or in the work environment, for instance) and those areas more distal to the employment setting (such as medication formulary). To put a fine point on the problem, Pfeffer notes that “putting a nap pod into a workplace is not going to substitute for the fact that people aren’t getting enough sleep because they are working 24/7.”
Those looking to get started might begin by watching Working on Empty, an 11-minute documentary, which can provide solid direction for the type of information you’re seeking from your employees. Honor their voice and insight, and use it to implement real change. In doing so, you will build trust and a channel for contribution that improves outcomes for employees and employers.
SOURCE: Jinnett, K. (20 May 2019) "Your bad work environment may be raising your healthcare costs" (Web Blog Post). Retrieved from https://www.benefitnews.com/opinion/workplace-stress-increasing-healthcare-costs