4 retirement trends to watch in 2016
Original post benefitspro.com
The Institutional Retirement Income Council has announced the top four retirement industry trends to watch in 2016.
- Financial wellness plans.
According to IRIC, financial wellness will be a big one.
Employers are expected to significantly expand wellness programs that currently focus on physical wellbeing so that they also include features focusing on financial wellbeing.
With all the financial challenges faced by employees—including medical expenses, credit card debt, college expenses, and retirement planning—financial wellness programs have been growing increasingly popular, with that trend expected to continue in the year ahead.
A 2014 Society for Human Resource Management survey reported that 70 percent of HR professionals predicted that baby boomers would likely participate in a financial wellness program if their employer offered one.
Such programs will likely include not just ways to manage debt and better save for retirement, but also how to calculate a spend-down plan once in retirement and how to incorporate Social Security into one’s overall strategy.
- Out of plan or in plan?
Next is the trend that pits out-of-plan income solutions against in-plan solutions.
In their quest to be sure that retirement savings will provide a regular source of income throughout retirement, participants have been looking outside of their retirement plans to find ways to translate a lump sum into a monthly check.
However, the Department of Labor’s expected implementation of a fiduciary rule will have a major effect on out-of-plan advisors, as well as in-plan options.
The release of a Center for Retirement Research study that showed IRAs’ rate of return a poor substitute for that of defined benefit plans will, according to IRIC, “make it all the more difficult for advisors to recommend moving out of a defined contribution plan to those eligible to keep their assets in the plan.”
As a result, it expects that participants will be more likely to leave their assets in a retirement plan rather than rolling them over.
- In-plan retirement income solutions.
The move to keeping assets inside retirement plans, IRIC said, “should cause an increase in participant interest in investment vehicles that provide solutions to the draw-down, rather than accumulation, of retirement assets.”
As a result, revisiting in-plan retirement income solutions will become a major focus for plan sponsors in 2016.
IRIC said that plans that have not considered this will be under pressure from participants to “consider new solutions to address the risks of retirement income sustainability, longevity risk, market timing risk and in-plan distribution options.”
- In-plan distribution flexibility.
Plan sponsors will have to consider the question of which distribution options will be available to terminated participants.
If a plan only offers two options—complete lump-sum distribution or keeping the entire balance in the plan—it’s likely that sponsors will want to explore the possibility of offering periodic withdrawal opportunities, so that they can encourage terminated participants to keep their assets in the plan—which can provide benefits not only to the participants, but also to the plan itself in the form of reduced administration and fee costs.
What employees need to know now to file tax forms for PPACA
Original post benefitspro.com
The Patient Protection and Affordable Care Act (PPACA) reporting deadlines are rapidly approaching, presenting a major administrative burden for employers who face penalties for failing to report in a timely and accurate manner.
While there has been significant discussion of employer roles and responsibilities, employees have been largely left out of the equation.
However, many employees will soon be receiving new forms that are critical to their ability to file their tax returns and to their employers’ ability to accurately fulfill their own reporting requirements. Among these are Forms 1095-A, 1095-B, and 1095-C.
With this in mind, it is important for employers to educate individual taxpayers on what they are required to do and when and how to complete these requirements in the easiest and most efficient manner.
1095-C
The most commonly received form will be the new 1095-C, which millions of Americans will be receiving for the first time this year.
This new government form is used to tell the Internal Revenue Service that you were eligible for insurance coverage under the Affordable Care Act and whether you took advantage of or waived this coverage.
This form will be sent by employers no later than March 31 to all eligible full-time employees who worked for a company with a total of 100 or more full-time or full-time equivalent employees in 2015. For the purposes of this form, full-time is any employee working 30 or more hours per week or 130 hours in a calendar month.
According to the IRS guidance, Form 1095-C helps to determine whether both the employer and the employee have complied with the “shared responsibility” clause of the ACA.
The form also determines whether an individual or family qualifies for the Premium Tax Credit, which reduces the burden of purchasing health insurance.
Anyone who does not have coverage elsewhere and chose to decline employer-sponsored health care coverage will be required to pay a penalty for not carrying coverage--this penalty will be assessed on their tax return.
For 2015, the penalty for declining all health care coverage is $325 per uninsured adult and $162.50 per uninsured child or 2 percent of household income, whichever is greater up to a family maximum of $975.
The penalty will increase to $695 per uninsured adult and $347.50 per child or 2.5 percent of household income up to a family maximum of $2,085 in 2016, and will continue to rise with inflation year-over-year.
However, the IRS offers special exemptions based on income, circumstance and membership in certain groups, so those without coverage should research their options or consult a tax professional. (The most common exemption is for those who declined employer-sponsored coverage that would have cost more than 8 percent of their total household income.)
Health care exemptions can be claimed by filing IRS form 8965 with your taxes. As previously noted, the form also determines who may be eligible for premium credits to help defray the expense of coverage.
Employers are required to submit insurance coverage information, along with social security numbers and other identifying employee information to the IRS, and employee failure to disclose a waiver of coverage may result in an audit and penalties greater than the ACA individual mandate penalty.
1095-B
Form 1095-B essentially serves the same purpose as form 1095-c, but is used by and sent to employees of companies with fewer than 100 employees.
It may also be sent directly by an insurer to certify that individuals/families had non-employer sponsored coverage in place in 2015. This coverage may have come from:
- Government health care plans such as Medicare Part A, Medicare Advantage, Medicaid, the Children's Health Insurance Program, and Tricare for military members, veterans’ medical benefits and plans for Peace Corps volunteers.
- Health coverage purchased through the "Marketplace" -- Web-based federal and state insurance markets set up under the Affordable Care Act.
- Any individual health insurance policy in place before the Affordable Care Act took effect.
Depending on the way a health care plan is structured, some employees may receive both a 1095-B and a 1095-C.
1095-A
Form 1095-A is only applicable to those who purchased their health care coverage through ACA’s health care exchanges.
This form plays a critical role in reconciling the Advanced Premium Tax Credits (also known as APTCs)--a yearly stipend based on modified adjusted gross income designed to help lower-income individuals and families defray the cost of purchasing exchange-based health insurance--for 2015 and in determining future credits for 2016.
Per IRS and ACA requirements, any excess APTC received in the previous year must be repaid through income tax.
What to do with these forms
Like the more familiar W-2 or 1099 forms, the 1095-A, B, and C will be needed to file a 2015 tax return for anyone who receives it.
Those using a tax preparer will need to bring it with them along with their other filing documents, and those doing their own taxes or using tax preparation software will need to keep this document with their tax records in case of any further inquiry /audit by the IRS.
Help is available
Of course, this is just one important factor in gaining a more thorough understanding of the complexities of the ACA. While the IRS has worked to streamline the process as much as possible, many employers and employees are struggling to understand and keep pace with changing requirements.
However, for quick questions, there are many good resources available to both employers and employees. One of the best is the IRS website.
As in all tax-related issues, the most important factors in handling ACA reporting for all groups are to know what’s coming, prepare in advance, keep excellent records, take note of deadlines and avail yourself of helpful resources.
What is the real cost of COBRA?
Original post by Chini Krishnan, eba.benefitnews.com
Whether you’re a benefit adviser, HR consultant or a broker, it’s important to understand the financial implications of COBRA and alternative solutions. By taking the right approach, you can become a cost-savings hero for both the employer and insured individuals. Here’s what you need to know to help educate your clients about COBRA alternatives that will put money back in everyone’s wallet next year.
While most individuals enrolled in a COBRA plan are keenly aware of the notoriously high expense, most companies don’t realize how much COBRA enrollees actually cost them – roughly 54% more in claims costs than active employees, according to Spencer’s Benefits Report. Here’s the breakdown:
- The average COBRA enrollee costs employers $11,000 in annual costs (versus $7,204 for the average active worker)
- Average rate of COBRA uptake by terminated employees: 10%
- Average recipient stays on COBRA 7.4 months
Why does COBRA cost employers so much? In part because former employees who opt in to COBRA generally do so because they have a pre-existing condition or other health issues, which drives the claims rates and costs up. Self-insured employers are most at risk for high COBRA costs because they cover the entire cost of their employees’ health insurance claims, including COBRA enrollees’ claims.
And, there’s more to consider when looking at COBRA’s bottom line. Having former employees on COBRA leads a company to be considered more of a risk when it comes time for annual renewals, or when shopping around for new plans. In fact, if a company chooses look for a new plan, it will start getting declined by carriers if it has more than 10% of its population on COBRA — the exact percentage of average uptake. So, in the end, having too many people on COBRA can hike up the premiums for active employees, too.
A better bet
Leveraging new opportunities available under the Affordable Care Act, employers and brokers can transition COBRA enrollees to a marketplace plan. This move is a huge win-win for both companies and their former employees. Employers save on the cost of claims, while former employees can save literally thousands of dollars a year compared to the cost of COBRA. Let’s look at the numbers from an enrollee’s perspective based on Kaiser Family Foundation’s 2015 Employer Health Benefits Survey:
- The average COBRA premium for a family in 2015 is $17,895.90 per year or $1,491.33/month
- Average individual premium (HHS/healthcare.gov states) before the Advanced Premium Tax Credit (APTC) is $374
- Average individual premium (HHS/healthcare.gov states) after the APTC is $105
- Average COBRA premium of $531.33/month
Considering these statistics, marketplace plans have the potential to be 80% less than COBRA.Plus,Centers for Medicare and Medicaid Services recently cited an HHS analysis stating “about eight out of 10 returning consumers will be able to buy a plan with premiums less than $100 dollars a month after tax credits; and about seven out of 10 will have a plan available for less than $75 a month.”
One of the common misconceptions is that marketplace plans don’t hold their own when compared to group insurance. But that’s hardly the case, especially when you consider that, after tax credits, enrollees could even upgrade their plans for the same price as COBRA. With such significant savings possible, it pays to be educated. In this case, what employers don’t know will hurt their bottom line. Don’t miss the window of opportunity to transition COBRA enrollees to the public marketplace.
Chini Krishnan is co-founder & CEO, GetInsured.
Don't let enrollment season ruin the holidays
For HR managers it's not just the holidays, it's also open enrollment time and that adds another level of hectic to the end of the year. Piles of employment guides, PowerPoint presentations and employee questions can seem a bit much.
To help you survive the madness, Laurie Hamill, Ph.D., shared some tips with Employee Benefit News. Hamill is the Chief People Officer with corporate wellness technology company Limeade.
Make it a team effort. HR cannot (repeat, CANNOT) run open enrollment in a vacuum. So lean on consultants and communication pros to craft your messaging. Turn to senior leaders for top-down messaging on why changes are happening. Bring in your benefit vendors to explain the impact of changes and walk employees through the enrollment process. Like many things, open enrollment takes a village, so use yours.
Get your systems and your technology in lockstep. Few things can set off a fire drill like systems crashing and just plain misbehaving – especially with online enrollment. So get ahead of the game by partnering with IT to determine how people will enroll, how data will be handled and how it needs to flow between departments (like HR and payroll). It’s also important to have non-HR employees test the process and provide feedback on what’s not clear. Map out contingency plans and decide who will be on point if things go awry. Your worst-case scenario might be paper enrollment, so have forms ready and prepare your vendors for this “In Case of Emergency” solution.
Be transparent. Don’t be afraid to get real with employees about what’s changing, why and what they need to do. No spin. No sugar. No jargon (please). If you’re making significant plan changes this year, use personas to help people understand how this will affect them. And provide decision guides that walk them through all the variables (particularly deductibles, copayments, HSA contributions, covered services and provider network details) so they can make the best choice for themselves and their families. When you’re upfront about what’s happening and you provide helpful, detailed communications, you build employees’ trust, head off confusion and save yourself the time and energy spent responding to a barrage of questions.
Talk to your employees. And more importantly – listen. We all put a ton of blood, sweat and tears into benefit planning and open enrollment communications – so much so, that it can become a bit of a one-way street. Keep in mind that this is a time when employees are sitting up straight and paying attention. So ask for their feedback. How do they feel about what’s changing? The benefits overall? Why? What could be done differently? Whether you’re talking with employees at a town hall, engaging with them over social media or asking for their honest responses to a survey, really listen to what they have to say, thoughtfully respond and act on their feedback as much as you can.
Get a leg up on next year. We’re aware of the head-on-the-desk disbelief. But setting aside a bit of brain space for next year’s enrollment is less daunting than it sounds: all we’re suggesting is that you take employee feedback and lessons learned from this enrollment period and start compiling them for next year. That might be possible benefit changes, new benefits to add or ways to communicate differently. You know what they say about the early bird ... and in this case, the sooner you nail down what 12 months from now looks like, the more proactive (and effective) you’ll be when it comes to next year’s systems and communications.
Automate and eliminate. While we’re on the topic of next year’s open enrollment (bear with us for one more minute), think about your enrollment process and deliverables. Are you rewriting communications from scratch every year when they really just need some updating and tweaking? Are you continuing to hold information sessions that few people attend? As you go through enrollment this year, look for ways to scale back on time and resources, as well as processes you can put into place so things run themselves. You’ll thank yourself next year.
Make it fun! Why not make open enrollment an opportunity for employees to earn points and prizes? Launch an Open Enrollment Challenge and reward people for taking various actions, like attending an open enrollment info session, updating beneficiary details and enrolling by a certain date. Or plan an Open Enrollment Walk, where people can head out for a stroll with HR and colleagues, giving them an opportunity to ask benefit questions along the way. (P.S. Make time afterward too).
Don’t forget about you. At Limeade, we wouldn’t be in the business we’re in if we didn’t believe in the importance of self-care. So how about a little less head-on-the-desk and a little more head-in-the-clouds? Although it might feel like you don’t have time to take a break, right now you need it more than ever. So along with those enrollment meetings, town halls, social media replies and survey reviews, block time for you on the calendar. Go for a run, head out for a relaxing healthy lunch, read a great book, meditate, daydream (yes, head in the clouds), take a yoga class – whatever makes you happy and keeps you sane.
Work culture trumps benefits for millennials
Original post benefitspro.com
Millennials don’t just work for money. They also like doing things that they believe in.
That’s according to a new report from Virgin Pulse, which surveyed over 1,000 full-time millennial employees to get a sense of what they’re looking for in a job.
That’s not to say that today’s youth are all devoted philanthropists. In fact, only 39 percent believe that charity is very important at work.
But what they do want is a culture and mission they can get behind. The report found that 77 percent of young workers believe that company culture is at least as important as pay and benefits. Three-quarters of them can identify their company’s mission and nearly just as many believe it is important that their employer have one.
The survey also suggested that most millennials aren’t stressed that technology is eroding the barrier between work and personal time. Ninety-three percent said that it’s OK to work during off-hours. Two-thirds of them say they have texted with their boss about work. And a slight majority — 55 percent — say that tech helps balance their work-life priorities.
And yet, the survey suggests that millennials expect their responsiveness to emails and texts to be rewarded with some slack from their boss, as 80 percent identified flexible work hours as important.
The report warns employers to watch out for burnout among young workers, no matter how infinite their energy or availability may appear: “24/7 accessibility does a number on their stress levels and your business, so encourage employees to put up some tech parameters.”
Over-screening could be killing your wellness program
Wellness programs are seen as a way to hold down healthcare costs for companies. The idea is you give employees a helping hand to better their health and eventually their need for doctor visits and medications lessen.
But is it working?
Al Lewis, CEO of Quizzify and author of Surviving Workplace Wellness, believes the U.S. is "drowning" in over-diagnosis and over-treatment and wellness programs are partly to blame, according to EBA's article, 'Wellness programs ‘massively over-screening’ people'.
“This country is drowning in over-diagnosis and over-treatment, raising health care costs,” Lewis said.
Lewis believes the over-testing done on employees as a requirement in a company's wellness program could lead to false positives, unneeded medications or higher expenses for employers and employees.
Ron Goetzel, senior scientist at Johns Hopkins Bloomberg School of Public Health, agrees there are a lot of lousy wellness programs out there, but there are some good programs too.
“What we’re trying to do is figure out what works,” Goetzel said. “The most effective way is creating cultures of health where people go to work every day and come out healthier because of the culture, through leadership support and commitment, and a culture of doing everything to promote health.”
Lewis and Goetzel comments come from debate during the Population Health Alliance Conference in Washington, D.C. on Nov. 2, 2015.
Congress passes budget bill, what does it mean for employers?
Congress passed the Bipartisan Budget Act of 2015. President Obama released a statement Friday morning applauding Democrats and Republicans for their passing votes.
“I applaud the Democrats and Republicans who came together this morning to pass a responsible, long-term budget agreement that reflects our values, grows our economy and creates jobs,” President Obama said in the statement. “This agreement is a reminder that Washington can still choose to help, rather than hinder, America’s progress.”
The big picture on the bill approved a two-year budget deal that would increase spending limits and avert a damging default.
RELATED: Senate approves two year bipartisan budget agreement
What does the budget bill mean for employers?
The bill repealed the Affordable Care Act's provision requiring employers with more than 20 employees to automatically enroll a ful-time employee in a health plan if overage wasn't voluntarily chosen or declined by an employee. However, since 2012 regulators have not put great emphasis on the provision.
“Striking this redundant requirement off the books puts health decision-making back in the hands of American workers and their families, and provides employers with relief from potentially problematic and burdensome regulations,” Christine Pollack, vice president of government affairs at Retail Industry Leaders, told Employe Benefit Adviser. The RILA is a trade association representing more than 200 of the world’s largest retail companies, including Wal-Mart, Walgreens and Apple.
The bill also provides that the single-employer fixed Pension Benefit Guaranty Corporation (PBGC) premium would be raised to $68 for 2017, $73 for 2018 and $78 for 2019, and then re-indexed for inflation. The bill also bumps the due date up to the ninth calendar month beginning on or after the first day of the premium payment year. It was the tenth calendar month.
RELATED: Changes employers would see with the budget bill
Aging workforce means rethinking benefit strategies
More gray hair in the workforce is becoming the norm as more workers are putting off retirement.
The Center for Retirement Research at Boston College found workers are delaying retirement because of a lack of traditional defined benefit pension benefits, a later Social Security retirement age for full benefits and the declining number of employer-provided retiree health benefit programs. However, there are some that keep working for financial reasons or because it keeps them busy and sharp.
The Boston College researchers expect the average retirement age to increase by a full year from the current age of 61.8 to 62.8 over the next three decades.
Joanne Sammer, a New Jersey-based business and financial writer, shared with shrm.org how the older worker can affect your company's benefit plans.
Workplace Implications
An older workforce has significant implications for employers and the organizational culture. There are plenty of positive aspects of having more older workers in an organization. For one thing, many older workers are talented, well-trained, and have deep life and workplace experience that can be invaluable to any organization. But the value that comes from having older workers does not necessarily accrue automatically. Companies can cultivate this value by:
• Fostering generational ties. “Employers should develop strategies for capitalizing on the positive opportunities that multigenerational workforces can create, such as mentoring, knowledge transfer, diversity of perspectives, and cross-training on technology and other skills,” said Debra Friedman, member of law firm Cozen O’Connor in Philadelphia.
At the same time, employers will need to manage some of the challenges associated with older workers. “When employees stay in the organization longer, the balance of generations and the gaps between them become greater,” said Chris Cordery, senior vice president of sales at RealMatch, a recruitment technology firm in New York
Cordery suggested that employers pay close attention to how various generations interact and work together. Designing events and activities that allow employees from multiple generations to get to know each other and socialize a bit can also help prevent or ease any tensions in the workplace, he said.
• Offering accommodations. There are legal issues to consider as well. For example, “employers may experience a higher volume of Family and Medical Leave Act leave requests from its aging workforce, as older employees may have more serious health conditions and/or need to care for aging parents and spouses,” said Friedman.
Older workers may also require more accommodations in their work environment. In these cases, employers need to be vigilant in making sure the organization and individual managers and supervisors are well-versed on various legal requirements for making such accommodations, including the federal Americans with Disabilities Act and relevant state and local laws.
“Employers also should be proactive in training their workforces to prevent age bias in recruiting, hiring, performance management, retention and workforce reorganizations,” said Friedman.
• Phasing retirement. Just because employees are staying in the workforce longer does not mean that they want to keep working forever. Employers can offer flexible work arrangements, such as flexible hours and scheduling, and telecommuting opportunities. These efforts can include a formal phased retirement program that allows employees to keep working while reducing their hours, and potentially their responsibilities, over time.
“An employee who is aging may still want to play a vital role in the organization, but may not be able to contribute in the same way and at the same speed,” said Beth Zoller, legal editor for XpertHR USA, a provider of HR information resources. “If a worker is no longer able to perform a specific job, the employer should evaluate whether an employee’s skills and talents may be used elsewhere in the company.”
The Benefits Question
Benefits and compensation can also reveal the differences between older and younger workers. “Employees later in their careers may be more motivated by a 401(k) match, while employees earlier in their careers may be more excited about educational reimbursement,” said Jackie Breslin, director of human capital services at HR services provider TriNet in San Leandro, Calif.
Because older individuals tend to have higher health care expenses, employers with a large number of older workers could see higher health benefit costs. Friedman urged employers to implement wellness programs that can help the entire workforce to identify and manage any chronic health conditions.
Zoller suggested employers increase their workplace safety efforts to help older workers. For example, employers could install guardrails, better lighting and other improvements to help ease the strain on older workers.
Growing Awareness
Employers are recognizing the trend toward longer work lives and the implications for the workplace. A 2014 survey of nearly 2,000 HR professionals by the Society for Human Resource Management found that 36 percent were aware of the aging workforce trend and were examining their internal policies and management practices to address the change, while 20 percent had already done so and determined no changes were necessary. Another 19 percent were just becoming aware of these issues.
This awareness is critical. The changes and accommodations necessary for older workers are not extensive. They simply require employers to have open eyes, ears and minds in order to see potential challenges and pressure points for older workers and take steps to alleviate them.
Joanne Sammer is a New Jersey-based business and financial writer.
7 tips to get employees listening to your benefit chat
Employees care about their health care benefits. It's an important part of why they get up and go to work each day.
However, when it comes to open enrollment, many zone out and often forget the pile of paperwork offered each year to figure out what's happening with their benefits.
Alison Davis, founder and CEO of Davis and Company, offers 7 tips to cut the clutter and get employees to listen.
1. Tell the 'Why?' behind changes.
Tell the "why" behind changes. Why does your company offer benefits? How does the package stack up against the competition? Answer these questions for your employees, and then share the reasoning behind your decisions. Chances are, you thought carefully about changes, looked through the data, and made strategic decisions based on cost-benefit analysis. Walk employees through that process.
2. Use the inverted pyramid to organize information.
This classic structure puts the most relevant information first and saves the details for lower down in the message. And it works for any kind of communication, from e-mail to enrollment packages to benefits meetings.
3. Focus on what employees need to do.
In these information-overloaded times, employees want you to cut to the chase and tell them what action is required. So be clear, with content such as "Five decisions you need to make" and "A three-step process for choosing your benefits."
4. Be visual.
Instead of long narrative copy, break content into easily scannable segments. For example, create a table that captures key changes to next year's benefits. Or add a sidebar with a checklist of decision items. And whenever possible, use icons, photos, or sketches to illustrate your points.
5. Avoid the urge to sugarcoat.
Communicating benefits is often a "bad news, bad news" proposition. Sometimes costs increase; other times benefits are eliminated. To maintain credibility, it's important to communicate honestly. Tell employees why a change was made, how costs were managed, and how they can choose and spend wisely.
6. Don't be shy about celebrating good things.
Use communication to remind employees about benefits that are designed to make their lives better, such as flexible spending account debit cards, preventive care, discount gym memberships, and free financial advice.
7. Be service-oriented.
Include tips, advice, and Q&As that will help employees be smarter consumers and live healthier. Here are some examples of service-oriented topics you can integrate into your communications:
- How to determine if you're saving enough for retirement
- Low-impact ways to get more exercise
- How I saved $300 on my prescriptions
- Five often overlooked discounts offered by the company medical plan
RELATED: Why Companies Are Wasting The Money They Spend on Pay and Benefits
Technology, interaction, variety: What Millenials look for in a benefits package
Millenials are thinking differently about their company's benefit packages. Understanding what this growing generation in the workforce is looking for could help with your company's recruiting efforts.
A Millenial is someone born after 1980 and the first generation to come of age in the millennium. Pew Research reports this group will number 75 million this year. That's greater than Generation X and Baby Boomers.
But not all Millenials in the workforce are signing up for a benefits package. The Society for Human Resources Management found that just under half of all Millenials consider their overall benefits package to be very important.
Those that find the benefit package important are likely to offer up these answers when asked about employee benefits, according to benefitspro.com.
"I want choice and variety."
Millennials are accustomed to having access to what they want when they want, especially when it comes to information. They want choices and are often offended by a one-size-fits-all approach. Overall, they look for a well-rounded array of benefits, which may mean that a mix of employer-paid products with supplemental and voluntary products will play an increasingly important role for many employers.
"I want customization and control."
Personalization is highly important to millennials. When they’re offered benefits, they expect those benefits to be tailored to their needs. And, they want control over how they spend their money. While giving them plenty of options puts them in the driver’s seat, too many options may paralyze them. Try to strike a healthy balance by considering a choice of plan designs within a product category, or perhaps core/buy-up options.
"I want true simplicity."
Employee benefits shouldn’t be complicated, and communication is the key. Millennials are looking for simple, clear, easy-to-follow steps, which includes systems that are easy to use. It will be to your advantage to recommend working with a carrier who embraces simplicity and offers varying enrollment strategies. This gives you flexibility in recommending the one that’s likely to be most effective.
"I want interaction and collaboration."
Social is the name of the game for the millennial generation. Peer networks play a huge role in decision-making. Employers would be wise to offer ways their employees can interact and network to get information. Blogs are an important way millennials build trust, gather information and connect. Promote them with your clients. They work.
"I want technology, not paper."
Clearly, the biggest difference between millennials and other generations is their use of technology … and their expectation that technology also be important to others with which they interact. They want to use tools that make benefits easier, such as apps and online portals. And they want alternatives to paper. They trust technology.