What to consider before adding a genetic testing benefit
According to recent statistics from the Society of Human Resource Management (SHRM), 18 percent of employers provide health-related genetic testing benefits. Read this blog post for what employers should consider before adding a genetic testing benefit to their benefits package.
As employers look for new voluntary benefits to help attract and retain employees, a growing number are turning to direct-to-consumer genetic testing for all employees to their benefits plans. According to the latest statistics from the Society for Human Resource Management, 18% of employers provide a health-related genetic testing benefit, an increase of 6% over the previous year.
For the most part, it can be a smart move: Not only can the benefit differentiate one employer from others vying to hire from the same employee pool, genetic testing providers market the benefit as a way to potentially lower healthcare costs and increase employee wellness.
This type of testing can be valuable for employees at an increased risk for certain types of cancer, such as breast and ovarian cancer related to mutations of the BRCA1 and BRCA2 genes, those considering having a child who have risk factors for genetic conditions such as cystic fibrosis and Tay Sachs disease, those who have a family history of conditions like high cholesterol, and those who take medications such as blood thinners and anti-depressants. There also are tests that look for genes associated with conditions such as Parkinson’s disease, Alzheimer’s disease and celiac disease.
But employers also have to realize that genetic testing for all employees, regardless of family history and risk factors, comes with potential downsides. In fact, some physicians believe that widespread genetic testing of this type may even present a risk of harm. There’s also the issue of regulation and oversight of direct-to-consumer genetic testing. The industry is not currently regulated, which, some researchers have found, can lead to inaccurate or varying results. One study found that when the same genetic variant was provided to nine different labs for analysis, the answers provided were different 22% of the time, highlighting the risk of false positive and false negative results.
So for employers who offer — or are considering adding — a genetic benefit, make sure to think about the potential outcomes that can occur by doing so.
The potential for lower costs as well as unnecessary healthcare spending
If an employee’s genetic test is positive for a mutation that’s associated with cancer or another disease, he or she may be more proactive about screening for the disease and may make lifestyle changes that may lower the risk of developing the disease. There are potential healthcare cost savings to early detection of some conditions. For example, by some estimates, the cost for treating early-stage breast cancer is more than 50% less than the cost to treat the same cancer at an advanced stage.
For employees who undergo testing related to how effective a blood thinner or antidepressant will be, there can be better health outcomes as well as cost savings. One study found that when physicians prescribed the blood thinner Warfarin based on pharmacogenomic testing, adverse events decreased by 27%. Avoiding adverse events and making sure employees are taking the medications that can most effectively treat their conditions can help keep them healthy, out of the hospital and productively on the job, all of which has a positive financial impact.
But when you’re screening people who don’t have risk factors or a family history of these conditions, a positive test result can lead to unnecessary testing and medical procedures, potential complications from those procedures and the costs associated with that testing and care.
Before and after testing, education
Employers who offer genetic testing without a physician referral need to take steps to ensure that employees understand the risks and benefits of these tests upfront and that they know what a genetic test can and cannot tell them about their health now and in the future. The first step is for any employer offering genetic testing to provide education for employees.
Many employees don’t realize that having a gene mutation that’s associated with a disease does not mean that he or she will ever develop that disease. The risk associated with most genetic variations is, in fact, relatively small. Because of that misunderstanding, employees may experience needless worry or, if the test is negative for mutations related to a disease, may forgo screenings like mammograms, colonoscopies and cholesterol tests that can help detect health problems earlier when they are often more treatable. In the case of genetic testing for mutations associated with cancer, employees may not be aware that most cancers are not caused by a mutation in the single gene that the test screens for.
For some of the conditions that genetic tests screen for, like Alzheimer’s disease, there are currently no treatments. This can again cause anxiety for employees and their families. Genetic tests also have implications that reach beyond the specific employee who is tested. A positive test can affect siblings and children as well, opening the question of whether the employee wants or feels compelled to share the results with other family members who may also be at risk.
Employers who offer employees genetic testing should ensure that all employees who choose to undergo testing are guided by experienced genetic counselors who can help them interpret and understand the results of their test and can connect them with other healthcare providers for additional testing or treatment as needed.
SOURCE: Varn, M. (3 May 2019) "What to consider before adding a genetic testing benefit" (Web Blog Post). Retrieved from https://www.benefitnews.com/opinion/what-to-consider-before-adding-a-genetic-testing-benefit
4 benefits messages to send employees in May
Tax season has come and gone, and summer is right around the corner, making it a great time of year for employers to beef up communications about certain employee benefits. Read this blog post for four benefits messages employers should send their employees this May.
With tax season behind us, summer right around the corner and the second half of the year coming up, now is a great time of year for employers to beef up communications about certain benefits.
That’s because there are a number of important messages that are specific to this time of year, including saving money for summer vacations and putting more money into a health savings account so employees can plan for healthcare expenses for the remainder of the year.
Here are four messages employers should share with their employers this month.
1. Think about putting more money in your HSA.
May is a great time for your employees to take stock of their healthcare costs from January to April, and plan ahead for the second half of the year. Here’s a breakdown you can send to help them save money and have more cash available through December to pay their bills.
- Add up this year’s out-of-pocket health care costs thus far.
- Make a new estimate of your upcoming expenses (padding that estimate for unexpected expenses that may pop up.).
- Add your estimated costs to what you’ve already spent.
- Compare that total with how much you’ll have in your HSA account at the end of the year as it is now.
- If there’s a gap, you can increase your contribution rate now to make up the difference.
2. Adjust your W-4s.
Tax season has passed, which means it’s an excellent time to…think a little more about taxes.
The tax law changes that went into effect at the start of 2018 might have made your employees’ existing W-4s less accurate. If they didn’t update their withholding amount last year, they might have been surprised by a smaller refund, a balance due, or even by a penalty owed — and chances are, they don’t feel too happy about it.
Let your employees know that they can prevent unexpected surprises like this next tax season with a visit to this IRS tax withholding calculator. There, they can estimate their 2019 taxes and get instructions on how to update their W-4 withholdings to try and avoid any surprises next year. If they can update their W-4 online, send them the link along with clear step-by-step instructions. And if they need to fill out a paper form, explain where to find it and how to submit it.
3. Revisit your budgeting tools.
Summer is almost here, and your employees are likely starting to think about hitting the beach, road-tripping across the country or eating their weight in ice cream. Since having fun costs money, May is a good time to serve up some ideas on how to squirrel away a little extra cash in the next few months.
Employers should share tips for saving money on benefits-related expenses, like encouraging high-deductible health plan employees to use sites like GoodRx.com for cheaper prescription costs, or visiting urgent care instead of the emergency room for non-life-threatening issues. Also, consider making employees aware of apps like Acorns, Robinhood, Stash, Digits and Tally, which round up credit or bank card expenses to the next dollar, and automatically deposit the extra money into different types of savings accounts.
4. Double-check out-of-network coverage.
While you’re on the subject of summer fun, remind your employees to take a quick peek at their health plan’s out-of-network care policies before they head out of town. If they need a doctor (or ice cream headache cure) while they’re away, they’ll know where to go, how to pay, and how to get reimbursed.
Employers should remind employees that their HSA funds never expire, and they’re theirs for life. So if they put in more than they need this year, it will be there for them next year.
SOURCE: Calvin, H. (1 May 2019) "4 benefits messages to send employees in May" (Web Blog Post). Retrieved from https://www.benefitnews.com/list/4-benefits-messages-to-send-employees-in-may
Changes are coming to paid leave. Here’s what employers should know
Many states and local governments are enacting their own paid leave policies, making it difficult for employers to navigate employee paid leave. Read this blog post for what employers should know about the coming changes for paid leave.
A growing number of states and local governments are enacting their own paid leave policies. These new changes can be difficult for employers to navigate if they don’t understand the changes that are happening.
Adding to the confusion among employers, paid sick leave and paid family leave are often used interchangeably, when in fact there are some important distinctions. Paid sick leave is for a shorter time frame than paid family leave and allows eligible employees to care for their own or a family member’s health or preventative care. Paid family leave is more extensive and allows eligible employees to care for their own or a family member’s serious health condition, bond with a new child or to relieve family pressures when someone is called to military service.
The best-known type of employee leave is job-protected leave under the Family Medical Leave Act, where employees can request to take family medical leave for their own or a loved one’s illness, or for military caregiver leave. However, leave under FMLA is unpaid, and in most cases, employees may use available PTO or paid leave time in conjunction with family medical leave.
Rules vary by state, which makes it more difficult for multi-state employers to comply. The following is an overview of some new and changing state and local paid leave laws.
Paid sick leave
The states that currently have paid sick leave laws in place are Arizona, California, Connecticut, Maryland, Massachusetts, New Jersey, Oregon, Rhode Island, Vermont and Washington. There are also numerous local and city laws coming into effect across the country.
In New Jersey, the Paid Sick Leave Act was enacted late last year. It applies to all New Jersey businesses regardless of size; however, public employees, per diem healthcare employees and construction workers employed pursuant to a collective bargaining agreement are exempt. As of February 26, New Jersey employees could begin using accrued leave time, and employees who started after the law was enacted are eligible to begin using accrued leave 120 days after their hire dates.
Michigan’s Paid Medical Leave Act requires employers with 50 or more employees to provide paid leave for personal or family needs as of March.
Under Vermont’s paid sick leave law, this January, the number of paid sick leave hours employees may accrue rose from 24 to 40 hours per year.
In San Antonio, a local paid sick leave ordinance passed last year, but it may not take effect this August. The ordinance mirrors one passed in Austin that has been derailed by legal challenges from the state. Employers in these cities should watch these, closely.
Paid family leave
The five states that currently have paid family leave policies are California, New Jersey, Rhode Island, New York, Washington and the District of Columbia.
New York, Washington and D.C. all have updates coming to their existing legislation, and Massachusetts will launch a new paid family program for employers in that state. In New York, the state’s paid family leave program went into effect in 2018 and included up to eight weeks of paid family leave for covered employees. This year, the paid leave time jumps to 10 weeks. Payroll deductions to fund the program also increased.
Washington’s paid family leave program will begin on January 1, 2020, but withholding for the program started on January 1 of this year. The program will include 12 weeks of paid family leave, 12 weeks of paid medical leave. If employees face multiple events in a year, they may be receive up to 16 weeks, and up to 18 weeks if they experience complications during pregnancy.
The paid family leave program in Massachusetts launches on January 1, 2021, with up to 12 weeks of paid leave to care for a family member or new child, 20 weeks of paid leave for personal medical issues and 26 weeks of leave for an emergency related to a family member’s military deployment. Payroll deductions for the program start on July 1.
The Paid Leave Act of Washington, D.C. will launch next year with eight weeks of parental leave to bond with a new child, six weeks of leave to care for an ill family member with a serious health condition and two weeks of medical leave to care for one’s own serious health condition. On July 1, the district will begin collecting taxes from employers, and paid leave benefits will be administered as of July 1, 2020.
Challenging times ahead
An employer must comply with all state and local sick and family leave laws, and ignorance of a law is not a defense. Employers must navigate different state guidelines and requirements for eligibility no matter how complex, including multi-state employers and companies with employees working remotely in different jurisdictions.
These state paid leave programs are funded by taxes, but employers must cover the costs of managing the work of employees who are out on leave. While generous paid leave policies can help employers attract talent, they simply don’t make sense for all companies. For example, it can be difficult for low-margin businesses to manage their workforces effectively when employees can take an extended paid leave.
Not only must employers ensure compliance with state and local rules, but they also must make sure that their sick time, family and parental leave policies are non-discriminatory and consistent with federal laws and regulations. That’s a lot to administer.
Employers should expect to see the changes in paid sick leave and family leave laws to continue. In the meantime, companies should make sure they have the people and internal processes in place right now to track these changes and ensure compliance across the board.
SOURCE: Starkman, J.; Johnson, D. (2 May 2019) "Changes are coming to paid leave. Here’s what employers should know" (Web Blog Post). Retrieved from https://www.benefitnews.com/opinion/what-employers-need-to-know-about-changing-paid-leave-laws?brief=00000152-14a7-d1cc-a5fa-7cffccf00000
Getting employees up to speed with health literacy
Do your employees know how much sugar is in a granola bar or how much radiation is in a CT scan? If not, it's most likely because no one is teaching them. Continue reading to learn more on getting your employees up to speed with health literacy.
Your employees probably don’t know how much sugar is in a granola bar or how much radiation is in a CT scan. They may not even know how to reach your employee assistance program.
That’s because no one is teaching them. Which is what happens when wellness program education ends at eat more fruits and vegetables and avoid added sugar.
Sometimes the advice is even wrong. For example, below is a clipping from a popular health risk assessment. Focus on the lower right quadrant.
It isn’t entirely true that low-fat and nonfat dairy is healthier. In fact, full fat dairy does have health benefits, for example some studies suggest it could help protect against diabetes. By comparison, low-fat or nonfat yogurt could be a significant source of sugar.
This is why employee health literacy is so important. With easy access to mis-information, employees need to learn to sift through the noise to determine what is actually good for them.
Plus, there is plenty to learn. Spanning from everyday health, employee medical education and health benefits literacy. I’ve outlined just a few of the ways to employers can better educate their population.
Everyday health education
Sugar is one place where health education could be more impactful — but it should go beyond just telling workers to avoid added sugars. Education starts at work. Chances are your break room is stocked with granola bars, maybe Clif Bars. The first ingredient in a Clif Bar is organic brown rice syrup. That may sound healthy, but it’s really just sugar. In fact, there are almost 60 different sugars disguised with fancy names like turbinado or malted barley extract.
Another example is sleep. We all want employees to get enough of it, but do they know how? They may not know little bits of information that could help them get more shuteye, like there is a night shift setting on their iPhone or that energy-efficient light bulbs contribute to insomnia.
But teaching everyday health is just the beginning of health literacy. The real impact comes with employee medical education.
Employee medical education
U.S. consumers are voracious purchasers of healthcare services and yet our outcomes remain poor. Americans have about 240 CT scans per 1,000 people. To put that in perspective, only about 1 in 1,000 covered people in your employee population was hospitalized for diabetes last year. So 240 times more employees are getting scans than uncontrolled diabetes.
CT scans have risks. They have about 500 times the radiation of an x-ray and are especially concerning for children because their cells are dividing more rapidly than adults and are more sensitive to radiation exposure. The dye used intravenously also carries a risk.
But many employees don’t know about these risks. So it may be important to educate your workforce about these common medical procedures and how to decide whether or not it is right for them.
Health benefit education
Here’s a wild guess: your employees don’t appreciate the health benefits you provide for them. If so, you’ve got company. Most large organizations face the same issue.
Consider the employee assistance program. Do workers know you offer one? Do they know it’s confidential? They know their emails aren’t confidential, so don’t assume they know this. Do they know the URL, username and password? How many free sessions do they get?
Repeat a similar set of questions for all your benefits. You can’t expect that some memos and a website will implant your benefits firmly in their mind.
SOURCE: Lewis, A. (25 April 2019) "Getting employees up to speed with health literacy" (Web Blog Post). Retrieved from https://www.benefitnews.com/opinion/educating-employees-through-health-literacy
Think your employee is faking sickness? Here’s what you can do
Have your employees misused their FMLA leave before? Navigating FMLA can be tricky, leading to costly lawsuits if a wrong move is taken. Continue reading this blog post to learn more about handling FMLA misuse.
Your employee’s gout flared up, so they took the day off using intermittent medical leave. Later on, a photo of the same employee sliding into home base surfaces on social media that day. How do you find out if the employee was misusing FMLA leave?
Bryon Bass, senior vice president of workforce absence at Sedgwick — a business solution tech company — says navigating FMLA can be tricky, and the wrong move can provoke costly lawsuits. But if an employer has reason to believe the absence isn’t valid, Bass says there’s a process they can follow to investigate.
“I think [a social media photo] casts doubt on the reason for their absence,” Bass said during a recent webinar hosted by the Disability Management Employer Coalition. “It merits a second look, along with some potential code of conduct talks with HR.”
When a questionable situation arises, employers can ask for the worker’s approved medical condition to be recertified, Bass said. This involves having the employee resubmit their original FMLA application. Afterward, employers can send a list of absences to the employee’s healthcare provider to authenticate the dates as valid medical absences. Typically, employers can only request recertification after a 30 day period, unless there’s reason to believe the employee is taking advantage of the system.
“If, for example, you notice two employees — who happen to be dating — are taking off the same days for their different medical conditions, that’s a valid reason for asking for recertification,” Bass said. “Patterns of absence are a common reason to look into it.”
Instead of requesting recertification, some employers make the mistake of contacting the employee’s physician directly — a process called clarification. Employers are only allowed to use clarification during the initial FMLA application, and only after obtaining the employee’s permission. Clarification is used to answer employer questions about the amount of rest an employee’s condition merits.
Employers might not trust the opinion of their employee’s doctor, but they can’t ask for a second opinion until it’s time for the employee to re-submit their annual certification, Bass says. When that time comes, employers can appoint a physician to reexamine the employee at the company’s expense. If the employee objects to the second doctor’s report, a third opinion can be sought.
“With third opinions, both the employer and the employee have to agree on the provider because their decision is final,” Bass said. “Employers are also required to cover this expense.”
Although employers are within their right to file recertification, Bass says it should be done sparingly and in situations where evidence suggests misuse. An employee using slightly more time for recovery isn’t automatically abusing the policy, he said.
“FMLA does not permit healthcare providers to provide an exact schedule of leave, just an estimate of absences necessary for the employee’s treatment and recovery,” Bass said. “Treatments are more predictable, but it’s still only an estimate. If someone takes a little more time than estimated, it doesn’t mean you need to ask for recertification; in fact, the Department of Labor discourages that.”
SOURCE: Webster, K. (24 April 2019) "Think your employee is faking sickness? Here’s what you can do" (Web Blog Post). Retrieved from https://www.benefitnews.com/news/how-to-certify-medical-leave-and-handle-pto-requests?feed=00000152-a2fb-d118-ab57-b3ff6e310000
7 tips for keeping shift workers healthy
Most companies that are open for more than 10 hours a day have some sort of shift work or work pattern. Though shift work can have multiple positives for companies and their workers, it can also have numerous negative impacts on physical and mental health. Read this blog post for seven tips on keeping shift workers healthy.
For companies open for more than 10 hours a day, it’s likely that you have some sort of shift work, or a pattern of work involving rotation through different fixed periods across a working week or month. Employees who work in healthcare, call centers, manufacturing and in a warehouse all regularly work round-the-clock shifts, and these are some of the most common industries utilizing this type of model.
While shift work can have numerous positives for the company and even the workers, it also can have many negative impacts on health — both physical and mental. Beyond the most common health impact — sleep disruption — there are numerous other ways shift work can negatively impact a worker’s health including: mood disorders, gastrointestinal disorders, injuries and accidents, metabolic disorders, cancer, cardiovascular disorders, interference on family live and limited social life.
Shift workers also experience high levels of annual leave requests and short-term disability claims.
For employers in one of these industries, or any industry with non-regular shift hours, there are a few best practices that will help improve worker productivity and minimize leave.
Provide schedules that are as predictable at possible. Allowing an employee to settle into a regular schedule will allow them to establish a routine both at work and at home. Interference with home and social life can be a key trigger for a variety of negative health habits.
Limit the number of nights worked consecutively. Just like a traditional Monday-Friday, 9-5 worker, those working night hours need a weekend of their own, too. While this may not always be Saturday-Sunday, allowing them a couple of consecutive days off will give them time to disconnect and recharge.
Designate areas and times for employees to rest in the workplace. Whether a nurse in a busy ER department or a warehouse worker stocking shelves, everyone needs a break during their workday. Work with the shift manager to map out regular breaks and a calm and quiet place for employees to take a break.
Provide health and wellness programs that are accessible at night and on weekends. Since most HR professionals work office day jobs, they often forget about accessibility of services to employees working different hours. Assure your EAP provider is accessible 24/7 and if you have on-campus programs, be sure to offer them at different times for your shift workers. A factory employee working third shift should have the same level of access as a first-shift office worker.
Give employees more control over their schedules with shift-based hiring. This is an approach of hiring people for individual shifts rather than hiring employees, then scheduling them into shifts. Employees come to companies with a range of responsibilities outside of the workplace. Allowing them to match with the shift that best works with their personal lives will result in greater productivity and fewer health impacts.
For those returning to work following a leave, keep the schedule as close to their normal schedule as possible. While it’s not always possible to perfectly align with their previous schedule, you’ll want to get those returning from a leave back into the routine of their previous shift work. While on leave, many will have transitioned into a different sleep routine, so getting them back to the previous patterns will help with the transition back to work.
Provide resources on good sleep health. For shift workers, a healthy sleep routine can be challenging. However, there are simple and well-proven approaches to establishing sleep patterns regardless of the time of day. Be sure to regularly promote resources in the workplace and through regular communications. The American Academy of Sleep Medicine is a good place to start.
SOURCE: Willett, S. (26 April 2019) "7 tips for keeping shift workers healthy" (Web Blog Post). Retrieved from https://www.benefitnews.com/opinion/tips-for-keeping-hourly-employees-healthy?brief=00000152-14a5-d1cc-a5fa-7cff48fe0001
Workplace Wellness Programs Barely Move The Needle, Study Finds
A recent study from JAMA found that workplace wellness programs do not cut costs for employers, reduce absenteeism or improve workers' health. Read this blog post to learn more about this recent study.
Workplace wellness programs have become an $8 billion industry in the U.S. But a study published Tuesday in JAMA found they don’t cut costs for employers, reduce absenteeism or improve workers’ health.
Most large employers offer some type of wellness program — with growth fueled by incentives in the federal Affordable Care Act.
A host of studies over the years have provided conflicting results about how well they work, with some showing savings and health improvements while others say the efforts fall short.
Many studies, however, faced a number of limitations, such as failing to have a comparison group, or figuring out whether people who sign up for such wellness programs are somehow healthier or more motivated than those who do not.
Now researchers from the University of Chicago and Harvard may have overcome these obstacles with one of the first large-scale studies that is peer-reviewed and employs a more sophisticated trial design.
They randomly assigned 20 BJ’s Wholesale Club outlets to offer a wellness program to all employees, then compared results with 140 stores that did not.
The big-box retailer employed nearly 33,000 workers across all 160 clubs during the test.
After 18 months, it turned out that yes, workers participating in the wellness programs self-reported healthier behavior, such as exercising more or managing their weight better than those not enrolled.
But the efforts did not result in differences in health measures, such as improved blood sugar or glucose levels; how much employers spent on health care; or how often employees missed work, their job performance or how long they stuck around in their jobs.
“The optimistic interpretation is there is no way we can get improvements in health or more efficient spending if we don’t’ first have changes in health behavior,” said one study author, Katherine Baicker, dean of the Harris School of Public Policy at the University of Chicago. (Dr. Zirui Song, an assistant professor of health policy and medicine at Harvard Medical School, was its co-author.)
“But if employers are offering these programs in hopes that health spending and absenteeism will go down, this study should give them pause,” Baicker said.
The study comes amid widespread interest in wellness programs.
The Kaiser Family Foundation’s annual survey of employers found that 53% of small firms and 82% of large firms offer a program in at least one of these areas: smoking cessation, weight management and behavioral or lifestyle change. (Kaiser Health News is an editorially independent program of the foundation.)
Some programs are simple, offering gift cards or other small incentives to fill out a health risk assessment, take a lunch-and-learn class or join a gym or walking group. Others are far more invasive, asking employees to report on a variety of health-related questions and roll up their sleeves for blood tests.
A few employers tie financial incentives to workers actually lowering risk factors, such as high blood pressure or cholesterol — or making concerted efforts to participate in programs that might help them do so over time.
The Affordable Care Act allowed employers to offer financial incentives worth up to 30% of the cost of health insurance, leading some employers to offer what could be hundreds or even thousands of dollars off workers’ deductibles or premiums to get them to participate. That led to court challenges about whether those programs are truly voluntary.
In the study reported in JAMA, the incentives were modest. Participants got small-dollar gift cards for taking wellness courses on topics such as nutrition, exercise, disease management and stress control. Total potential incentives averaged $250. About 35% of eligible employees at the 20 participating sites completed at least one module.
Results from those workers — including attendance and tenure data, their self-reported health assessment and results from lab blood tests — were specifically compared with similar reports from 20 primary comparison sites where workers were not offered the wellness gift cards and classes. Overall employment and health spending data from all worksites were included in the study.
Wellness program vendors said details matter when considering whether efforts will be successful.
Jim Pshock, founder and CEO of Bravo Wellness, said the incentives offered to BJ’s workers might not have been large enough to spur the kinds of big changes needed to affect health outcomes.
Amounts of “of less than $400 generally incentivize things people were going to do anyway. It’s simply too small to get them to do things they weren’t already excited about,” he said.
An accompanying editorial in JAMA noted that “traditional, broad-based programs like the one analyzed by Song and Baicker may lack the necessary intensity, duration, and focus on particular employee segments to generate significant effects over a short time horizon.”
In other words, don’t give up entirely on wellness efforts, but consider “more targeted approaches” that focus on specific workers with higher risks or on “health behaviors [that] may yield larger health and economic benefits,” the editorial suggested.
It could be, the study acknowledges, that 18 months isn’t enough time to track such savings. So, Baicker and Song also plan to publish three-year results once they are finalized.
Still, similar findings were recently reported in another randomized control trial conducted at the University of Illinois, where individuals were randomly selected to be offered wellness programs.
In one interesting point, that study found that wellness-program participants were likely already healthier and more motivated, “thus a primary benefit of these programs to employers may be their potential to attract and retain healthy workers with low medical spending.”
Everyone involved in studying or conducting wellness agrees on one thing: Changing behavior — and getting people motivated to participate at all — can be difficult.
Steven Aldana, CEO of WellSteps, a wellness program vendor, said that for the efforts to be successful they must cut across many areas, from the food served in company cafeterias to including spouses or significant others to help people quit smoking, eat better or exercise more.
“Behavior is more complicated than simply taking a few wellness modules,” said Aldana. “It’s a lifestyle matrix or pattern you have to adopt.”
SOURCE: Appleby, J. (16 April 2019) "Workplace Wellness Programs Barely Move The Needle, Study Finds" (Web Blog Post). Retrieved from https://khn.org/news/workplace-wellness-programs-barely-move-the-needle-study-finds/
Adulting’ benefits: Employers’ new solution to burned-out employees
Generation Z and Millennials are expected to make up 50 percent of the workforce by 2020, leading many to believe that “adulting” benefits could be the next big trend in employee benefits. Read this blog post from Employee Benefit News to learn more.
In a time when globetrotting Gen Z and Postmates-loving millennials are expected to make up 50% of the workforce by 2020, could benefits that help with “adulting” be the next big trend?
Adulting is defined as “the practice of behaving in a way characteristic of a responsible adult, especially the accomplishment of mundane but necessary tasks.” Although millennials and Gen Z are well into adulthood, the struggle for them to accomplish day-to-day life management tasks is very real.
Many bemoan feeling busy all the time, tired and even burned out. In her Buzzfeed post, “How millennials became the burnout generation,” author Anne Helen Peterson strikes a chord with her “errand paralysis” reference. Pants going unhemmed for over a year, packages sitting in the corner waiting to be mailed for months, a car that desperately needs vacuuming — all part of a long list of never-ending low-priority, mundane tasks that get chronically avoided, yet still add to mental stress and anxiety.
Peterson blames underlying burnout as the culprit, even calls burnout the “millennial condition” affecting everyone, from the “people patching together a retail job with unpredictable scheduling while driving Uber and arranging child care to the startup workers with fancy catered lunches, free laundry service, and 70-minute commutes.”
So can convenience benefits — such as onsite errand runners — help with this problem?
There’s no denying those benefits might take aim at a big problem: employee stress. According to the American Psychological Association’s annual Stress in America report, members of Gen Z report the worst mental health of any generation. Only 45% of those in Gen Z reported “excellent” or “very good” mental health, compared to 56% of millennials, 51% of Gen X individuals, 70% of baby boomers and 74% of adults older than 73. Additionally, 27% of Gen Z respondents called their mental health “fair” or “poor,” and 91% said they had felt physical or emotional symptoms, such as depression or anxiety, associated with stress.
While employers cannot solve all employee problems, they can go beyond the basics of competitive pay, comprehensive health insurance and career advancement opportunities. Forward-thinking employers can look to new convenience benefits to help simplify the mundane and incessant responsibilities of life, alleviate errand paralysis and give their employees back valuable time to actually live.
For instance, a number of companies—including a major law firm in Atlanta has an onsite errand runner who helps employees do everything from plan exotic vacation getaways, shop for Christmas presents and go on weekly Costco runs. The onsite errand runner is on call all day to take care of employees’ personal tasks so they can focus on work and clients. The reaction has been very positive, with employees saying the service helps them stay focused and physically present at work knowing that other things in their life are being handled capably. An added bonus: It helps employees better achieve work-life balance because errands are not cutting into their home life like it did before.
As more and more companies look to prioritize the employee experience and get creative with nontraditional benefits, it makes sense to consider growing trends in convenience and lifestyle benefits. For instance, providing an errand running benefit to pick up groceries for an employee or drop off that mailing package saves the employee countless hours, not to mention stress, and speaks to the challenges of the modern world.
SOURCE: Clark, A. (8 April 2019) "Adulting’ benefits: Employers’ new solution to burned-out employees" (Web Blog Post). Retrieved from https://www.benefitnews.com/opinion/employers-address-burnout-through-adulting-employee-benefits
Making the Case for Pay Transparency
Is your organization increasing pay transparency? According to this article from SHRM, pay transparency is a strategic move that delivers measurable business benefits. Read this blog post to learn more.
Recommending to senior leadership that your organization increase pay transparency can be a difficult sell for HR professionals. However, pay transparency is a strategic move that delivers measurable business benefits – and it’s an issue on which HR should lead.
It is important to understand that most executives in America today rose through organizational ranks that viewed compensation as a private matter. Few within organizations had access to salary information, and even fewer talked about it. As a result, many leaders still believe it is appropriate to dissuade or prohibit employees from discussing their own compensation with other employees.
Yet we now understand these outdated cultural norms have contributed to the wage gap for women and minorities, among other negative outcomes. Pay transparency can help close those gaps and produce benefits for both employers and employees.
For example, providing employees with pay ranges for their current position and those positions in their career path sets realistic expectations. This is crucial, as many employees hold unrealistic expectations based on internet salary searches for job titles that often do not account for or accurately reflect important factors such as experience level, geography, company size, actual tasks and responsibilities, or other types of compensation. These unrealistic salary expectations create serious challenges, including employee disengagement, low morale and retention problems.
Clearly communicating your company’s pay ranges facilitates an open dialogue about how those ranges are set, when and why they change, and how employees can move up within them. These discussions in turn increase mutual trust and engagement and foster productive compensation communication — all of which help retain employees, which is especially important in today’s tight labor market.
Increasing pay transparency also helps businesses attract and retain a more diverse workforce, which numerous studies have demonstrated translates into better business results. Sharing compensation data advances this effort by ensuring women and minorities have a clearer picture of the going rate for their skill sets, education, experience and performance. While many factors contribute to pay gaps, women and minority groups may have accepted lower compensation in the past because they could not access the information necessary to determine what they should be making based on what they bring to the table.
While recommending greater pay transparency to senior leadership in your organization may seem daunting, it is an important discussion to have and a compelling case for HR professionals to make. In a highly competitive labor market, businesses that make the right strategic move of increasing pay transparency will ultimately attract and retain the best talent and come out ahead of those that do not.
SOURCE: Ponder, L. (4 April 2019) "Making the Case for Pay Transparency" (Web Blog Post). Retrieved from https://blog.shrm.org/blog/making-the-case-for-pay-transparency-0
A 16-Year-Old Explains 10 Things You Need to Know About Generation Z
What was life like when you were a teenager? The world has been focused on understanding and adapting to Millennials. Now Generation Z is beginning to graduate and enter the workforce. Read this blog post for 10 things the world should know about Gen Z.
Think about what life was like when you were 16. The clothes you wore, the places you shopped. What was most important to you then?
Whenever I speak to an organization eager to learn about Generation Z, I always ask that question. I get responses that include everything from the fleeting fashion trends of the day (bell-bottom jeans, anyone?) to the time-honored tradition of getting a driver’s license.
What I hope to achieve as a 16-year-old in 2018 is probably not all that different from what anyone else wanted when they were my age. It’s the way people go about reaching their goals that evolves over time—and that’s what also forms the basis of most generational clashes.
For the past several years, the world has been focused on understanding and adapting to Millennials, the largest and most-educated generation in history. Born between 1981 and the mid-1990s, this group has inspired important dialogues about generational differences and challenged all industries to evolve to meet their needs. In the workplace, Millennials have helped drive a greater focus on flexibility and collaboration and a rethinking of traditional hierarchies.
Of course, any analysis of generations relies on generalities that can’t possibly describe every person or situation. It’s important to remember that generations exist on a continuum—and that there is a large degree of individual variation within them. The point of this type of research is to identify macro trends among age groups that can help foster workplace harmony. Essentially, it’s a way of attempting to understand people better by getting a sense of their formative life experiences. The generation to which one belongs is among the many factors, such as race, religion and socioeconomic background, that can shape how a person sees the world.
But there’s little doubt that gaps among the U.S. generations have widened dramatically. For example, an 8-year-old boy in the United States who grew up with a tablet will likely have more in common with an 8-year-old in China who used a similar mobile device than he will with his 70-year-old U.S. grandparents.
In thinking about the generations, a key thing to understand is that these groups are typically categorized by events rather than arbitrary dates. Generation Z’s birth years are generally recognized as 1996 to 2009. The start year was chosen so that the cohort would include only those who do not remember the Sept. 11 terrorist attacks. The belief is that if you were born in 1996 or later, you simply cannot process what the world was like before those attacks. For Generation Z, the War on Terror has always been the norm.
Like all other generations, mine has been shaped by the circumstances we were born into, such as terrorism, school shootings and the Great Recession. These dark events have had profound effects on the behavioral traits of the members of Generation Z, but they have also inspired us to change the world.
Earlier this year, XYZ University, a generations research and management consulting firm where I act as the director of Gen Z studies, surveyed more than 1,800 members of Generation Z globally and released a study titled “Ready or Not, Here Comes Z.” The results were fascinating.
We discovered key characteristics about Generation Z and what the arrival of my generation will mean for the future of work. At 57 million strong and representing the most diverse generation in U.S. history, we are just starting to graduate from college and will account for 36 percent of the workforce by 2020.
Needless to say, Generation Z matters. And it is more important than ever for HR professionals to become familiar with the following 10 characteristics so that they know how to engage with my generation.
1. Gen Z Always Knows the Score
Members of this generation will put everything on the line to win. We grew up with sports woven into the fabric of our lives and culture. To us, the NFL truly does own a day of the week. But it’s more than just professional, college or even high school teams that have shaped us; it’s the youth sports that we played or watched throughout our childhoods. This is the generation of elite young teams and the stereotypical baseball mom or dad yelling at the umpire from the bleachers.
Our competitive nature applies to almost everything, from robotics to debates that test mental fortitude. We carry the mindset that we are not necessarily at school just to learn but to get good grades that will secure our place in the best colleges. Generation Z has been thrown into perhaps the most competitive educational environment in history. Right or wrong, we sometimes view someone else’s success as our own failure or their failure as our success.
We are also accustomed to getting immediate feedback. A great example is the online grading portals where we can get frequent updates on our academic performance. In the past, students sometimes had to wait weeks or longer to receive a test grade. Now, we get frustrated if we can’t access our scores within hours of finishing an exam—and sometimes our parents do, too.
2. Gen Z Adopted Gen X’s Skepticism and Individuality
Generations are shaped by the behavioral characteristics of their parents, which is why clumping Millennials and Generation Z together is a mistake. In fact, when it comes to each generation’s behavioral traits, Millennials are most similar to their parents—the Baby Boomers. Both are large, idealistic cohorts with influences that will shape consumer and workplace behavior for decades.
Members of Generation Z, on the other hand, are more akin to their parents from Generation X—a smaller group with a skeptical, individualistic focus—than they are to Millennials. That’s why many generational traits are cyclical. Just because Millennials and members of Generation Z are closer in age does not necessarily mean they share the same belief systems.
3. Gen Z Is Financially Focused
Over the past 15 to 20 years, HR professionals have been hyper-focused on employee engagement and figuring out what makes their workers tick. What drives someone to want to get up in the morning and come to work for your organization?
As it turns out, workplace engagement matters less to Generation Z than it did to previous generations. What’s most important to us is compensation and benefits. We are realists and pragmatists who view work primarily as a way to make a living rather than as the main source of meaning and purpose in our lives.
Obviously, we’d prefer to operate in an enjoyable environment, but financial stability takes precedence. XYZ University discovered that 2 in 3 Generation Zers would rather have a job that offers financial stability than one that they enjoy. That’s the opposite of Millennials, who generally prioritize finding a job that is more fulfilling over one that simply pays the bills.
That financial focus likely stems in part from witnessing the struggles our parents faced. According to a study by the Pew Charitable Trust, “Retirement Security Across Generations: Are Americans Prepared for Their Golden Years?,” members of Generation X lost 45 percent of their wealth during the Great Recession of 2008.
“Gen X is the first generation that’s unlikely to exceed the wealth of the group that came before it,” says Erin Currier, former project manager of Pew’s Economic Mobility Project in Washington, D.C. “They have lower financial net worth than previous groups had at this same age, and they lost nearly half of their wealth in the recession.”
Before Generation Z was decreed the ‘official’ name for my generation, there were a few other candidates, including the ‘Selfie Generation’ and ‘iGen.’
Employers will also need to recognize that members of Generation Z crave structure, goals, challenges and a way to measure their progress. After all, the perceived road to success has been mapped out for us our entire lives.
At the same time, it’s important to be aware of the potential for burnout among young overachievers—and to incorporate fun and breaks into the work environment and provide access to healthy escapes focused on relaxation and stress relief.
4. Gen Z Is Entrepreneurial
Even though they witnessed their parents grapple with financial challenges and felt the impact of the worst economic meltdown since the Great Depression, members of Generation Z believe there is a lot of money to be made in today’s economy. Shows like “Shark Tank” have inspired us to look favorably on entrepreneurship, and we’ve also seen how technology can be leveraged to create exciting—and lucrative—business opportunities with relatively low overhead. Fifty-eight percent of the members of my generation want to own a business one day and 14 percent of us already do, according to XYZ University.
Organizations that emphasize Generation Z’s desire for entrepreneurship and allow us space to contribute ideas will see higher engagement because we’ll feel a sense of personal ownership. We are motivated to win and determined to make it happen.
5. Gen Z Is Connected
Before Generation Z was decreed the “official” name for my generation, there were a few other candidates, including the “Selfie Generation” and “iGen.”
I find those proposed names both condescending and misleading. While it’s often assumed that Generation Z is focused solely on technology, talking face to face is our preferred method of communication. Sure, social media is important and has undoubtedly affected who we are as a generation, but when we’re communicating about something that matters to us, we seek authenticity and honesty, which are best achieved in person.
“Gen Z has the power of technology in their hands, which allows them to communicate faster, more often and with many colleagues at one time; but it also brings a danger when it’s used as a crutch for messages that are better delivered face to face,” says Jill Katz, CHRO at New York City-based Assemble HR. “As humans in the workplace, they will continue to seek empathy, interest and care, which are always best received face to face.”
XYZ University’s research found that cellphones and other electronic devices are primarily used for the purpose of entertainment and are tapped for communication only when the face-to-face option isn’t available.
However, successfully engaging with Generation Z requires striking a balance between conversing directly and engaging online. Both are important, and we need to feel connected in both ways to be fully satisfied.
6. Gen Z Craves Human Interaction
Given that members of Generation Z gravitate toward in-person interactions, HR leaders should re-evaluate how to best put the “human” aspect back into business. For example, hiring processes should emphasize in-person interviews more than online applications.
A great way to engage us is to hold weekly team meetings that gather everyone together to recap their achievements. Although members of Generation Z don’t necessarily need a pat on the back, it’s human nature to want to feel appreciated. This small gesture will give us something to look forward to and keep us feeling optimistic about our work. In addition, we tend to work best up against a deadline—for example, needing to have a project done by the team meeting—due to our experience facing time-sensitive projects at school.
7. Gen Z Prefers to Work Independently
Millennials generally prefer collaborative work environments, which has posed a challenge to conventional workplace cultures and structures. In fact, many workplaces have eliminated offices and lowered cubicle walls to promote more interaction. Yet recent studies indicate that totally open offices may actually discourage people from working together. The noise and lack of privacy could prompt more people to work at home or tune others out with headphones. Since different types of work require varying levels of collaboration, focus and quiet reflection, ideal workplaces incorporate room for both togetherness and alone time.
It’s important to be aware of the potential for burnout among young overachievers—and to incorporate fun and breaks into the work environment and provide access to healthy escapes focused on relaxation and stress relief.
The emphasis on privacy will likely only intensify under Generation Z. Unlike Millennials, we have been raised to have individualistic and competitive natures. For that reason—along with growing research into optimal office design—we may see the trend shift away from collaborative workplaces toward more individualistic and competitive environments.
8. Gen Z Is So Diverse That We Don’t Even Recognize Diversity
Generation Z marks the last generation in U.S. history where a majority of the population is white. Given the shifting demographics of the country, we don’t focus as much on someone’s color, religion or sexual orientation as some of our older counterparts might. To us, a diverse population is simply the norm. What we care about most in other people is honesty, sincerity and—perhaps most important—competence.
Indeed, we have been shaped by a society that celebrates diversity and openness. A black man occupied the White House for most of our lives, and we view gay marriage as a common and accepted aspect of society.
9. Gen Z Embraces Change
Compared to teenagers of other generations, Generation Z ranks as the most informed. We worry about our future and are much less concerned about typical teen problems, such as dating or cliques, than we are about becoming successful in the world.
The chaos and unrest in our political system have inspired us to want to get involved and make a difference. Regardless of which side of the aisle we are on, most of us are informed and passionate about the issues facing our society today. Witness, for example, the students of Marjory Stoneman Douglas High School in Parkland, Fla., who organized a political movement around gun control in the wake of a mass shooting at their school.
Social media allows us to have a voice in our political system even before we can vote. This opportunity has forced us to develop critical-thinking and reasoning skills as we engage in sophisticated debates about important issues that might not even affect us yet.
“Gen Z has a strong ability to adapt to change,” says Paul Carney, an author and speaker on HR trends and a former HR manager with the Navy Federal Credit Union. “For those of us who have spanned many decades in the workplace, we have seen the rate of change increase and it makes most of us uncomfortable. Gen Z are the people who will help all of us adapt better.”
According to numerous polls, the political views of Generation Z trend fiscally conservative (stemming from our need for financial stability) and socially liberal (fueled by diverse demographics and society).
10. Gen Z Wants a Voice
Given how socially aware and concerned its members are, Generation Z seeks jobs that provide opportunities to contribute, create, lead and learn.
“One of the best ways I have seen leaders engage with Gen Z is to ask them how they would build a product or service or design a process,” Carney says. “Gen Z has some amazing abilities to bring together information, process it and take action. When we do allow them to share ideas, great things happen.”
We’re also an exceptionally creative bunch. Managers will need to give members of this generation the time and freedom to come up with innovative ideas and accept that, despite our young age, we have valuable insights and skills to offer—just like the generations that came before us and those that will follow.