Employee Relations: Electing to Talk Politics at Work has Serious Implications
Original post workforce.com
As the political races unfold in 2016, just about everyone seems willing to share their opinions on candidates, parties and issues — whether they’re asked to or not.
For many of the nation’s workers, this can lead to uncomfortable situations or outright arguments while on the job. Responding with a personal opinion might seem like second nature, but it might also be a risky move careerwise.
Employers generally have the right to limit employees’ political commentary during work time, and many of them choose to do so given the often-heated nature of the subject. Workers should always use common sense when deciding whether to discuss political issues at work, but there are some situations in which employees should definitely steer clear of such talk, such as:
When the business owner or boss is vocal about their own beliefs. It’s a concept that might be shocking to many Americans, but, in many states, private employers may fire workers for their political beliefs.
Under the at-will employment doctrine, in the absence of a contract, employers can terminate employment at any time and for any reason not prohibited by law.
Every state except Montana subscribes to the at-will doctrine.
Under this principle, organizations don’t need “just cause” to fire someone. If local or state law doesn’t prohibit it, private employers generally may terminate an individual because of his or her political beliefs.
Many misinterpret the First Amendment and believe that it applies in all cases related to freedom of speech. The First Amendment only applies to government censorship of speech. As such, it restricts public employers from engaging in this practice.
Most private employers won’t typically terminate employees for their political beliefs. The bad publicity from such actions will typically outweigh any perceived benefits.
Even in states and locations without laws protecting employees’ political beliefs, employers will have to tread a fine line. Some states, like Wisconsin, prohibit employers from taking action on employees’ legal activities, such as running for office or voting. If the discussions are union-related, they might also be protected.
Yet, employees should still be cautious. A business owner or manager who is strongly invested in their political beliefs could discipline or terminate others with opposing viewpoints.
When it wastes time. Many employers recognize that restricting all nonwork-related conversations can have a detrimental effect on morale. But if employees are spending large amounts of time debating the pros and cons of a particular political candidate or issue when they should be working, an employer is going to take notice and possibly take action. Employers generally have control over what employees may and may not do on company property and on work time.
When discriminatory language is involved. Employers have a duty to prevent and address discrimination in the workplace.
If employees are holding inappropriate discussions about a candidate’s sex, age, race, religion, ethnicity or other protected traits, the employer will likely want to take action. A business may be held liable for fostering a hostile work environment if it does not halt such conduct.
Because of the legal ramifications, most employers take discrimination in the workplace very seriously and will respond accordingly. This could include discipline and even termination.
When representing the company. If an employee is passing themself off as a company representative, or even sporting company logos (on a shirt, hat, etc.) while giving a personal interview on the subject of politics, an employer likely has the right to act. Such actions could give customers and others the impression that the employee’s beliefs are those of the company.
Think before speaking. When faced with a workplace situation involving heavy political posturing, it can be hard to consider the effects of statements prior to making them in front of co-workers.
But taking a moment to think about the consequences of certain political discussions before engaging in them might be the best way for employees to safeguard their job.
Employees should consider the career risks of bringing politics to work. The best course of action might be to leave political discussion at the door.
Workplace Mindfulness Training Benefits Extend Beyond Individuals
Original post benefitsnews.com
Much of the research demonstrating benefits of mindfulness practice – stable attention, reduced stress, emotional resilience, and improved performance at work – focus on the benefits for the individual practicing mindfulness. But the workplace benefits extend far beyond that: Mindfulness has a huge impact on relationships. We’ve seen this in our work at eMindful, and it’s supported by considerable scientific research.
Humans are relational by nature, and the quality of our relationships deeply influences our health and well-being. The importance of relationships in the work environment is no exception. Satisfaction and performance at work are strongly linked to one’s ability to work well in teams, develop leadership skills, communicate effectively and resolve conflict.
Teamwork
Team performance obviously relies on relationship skills, and mindfulness training that improves these skills affects both the experience and productivity of teams. One study of health care workers found that a mindfulness-based mentoring intervention resulted in better active listening, more patient-focused discussion and collaboration, as well as greater respect among team members. Moreover, the newly learned mindful communication habits seemed to stick; one year later the team members still demonstrated the same skills.
Leadership
Mindfulness has become particularly popular in the business world as a component of leadership training. CEOs and senior executives have revealed that practicing mindfulness helps build leadership skills, connect to employees and achieve business goals.
One study showed that leaders’ mindfulness was associated with employees’ work-life balance, job satisfaction, and job performance. In that same study, employees of mindful leaders also experienced less exhaustion and burnout. The researchers attributed these findings to leaders being more attentive to and aware of employees’ needs, while self-regulating their own impulses and personal agendas.
Studies confirm the idea that mindful leaders are more attuned to their employees’ nonverbal communication, body language and emotions. In one study, more mindful individuals were better able to recognize the emotions displayed on others’ faces. In fact, it is not uncommon for leaders who complete mindfulness training to say communication feels somehow different, like they are truly listening to their employees for the first time.
Communication, conflict management
Much of the improvement in teamwork likely stems from improvement in communication skills and conflict management. Research suggests mindfulness is associated with better conflict management, with less aggressive communication, and better perspective-taking. During conflicts, people who rate higher in mindfulness have been shown to exhibit more positivity in interpersonal interactions, fewer inappropriate reactions, and less hostility. Mindfulness leads people to process events and feedback in a less self-referential or personal way, which fosters greater attention to group outcomes over self-concerns.
In a study of groups without leaders, teams that were randomized to a short mindfulness exercise had better scores on measurements of team bonding, and they performed better as well. These mindfulness-enhanced skills are helpful not only in better teamwork, but also in enhancing negotiation. One study showed that negotiators randomized to a short mindfulness intervention were more successful in distributive bargaining.
Mindfulness may improve negotiations and team functioning by affecting the emotional tone (positivity vs. negativity) of the team. Since mindful individuals tend to be less reactive to negative events, and recover from negative emotions more quickly, they can influence the collective mood and reduce emotional contagion – the tendency for “negative people” to “bring down” the mood of the group. By practicing focused, kind attention and skillful self-management, mindful people tend to influence through example, engaging and inspiring others.
In summary, practicing mindfulness yields personal benefits, and it can benefit everyone around you. Leaders who practice mindfulness listen differently and communicate more carefully. One result is that they have employees who are more productive and report better job satisfaction. Since mindfulness leads to less reactivity, greater focus on others’ needs, and overall positivity, practicing mindfulness also enhances teamwork through better perspective-taking and more skillful self-management. In my personal experience as a coach, clinician and academic researcher, mindfulness makes working relationships more enjoyable and productive. I’m delighted that research is beginning to confirm how the impact of mindfulness on relationships contributes to better business outcomes.
4 Ways to Talk to Employees So They Listen
Original post entrepreneur.com
No one likes to be lectured in the workplace.
As a leader, you need to communicate with your employees to deliver strategic direction, reinforce corporate culture and rally the troops to achieve company goals and objectives. To be effective, you need to deliver these messages in a way that creates energy and enthusiasm, rather than deflating your team.
Here are four tips for talking to employees in a way that energizes them rather than depleting them:
1. Use humor. No matter how big or small your operation may be, there is often tension and emotional distance between the boss and employees. To diffuse that, I regularly use humor, a tactic that makes me more approachable. In my experience, the best kind is self-deprecating humor. When I showed up to meet new employees for the first time at a Midwest location, I started the conversations by poking fun at my pronounced "New Yawk" accent. It got a laugh and made me seem more accessible.
2. Ask open-ended questions. And then be quiet. My favorite question to ask is “Tell me about [insert topic here].” When you ask a new employee about his ideas or a technologist about a new device, you are asking them to do more than give you a pat sentence or two in response. You have the opportunity to access that person’s deep knowledge and passion. Ask a question that opens the conversation wide and then hold still and listen.
3. Bring others into the conversation. A boss-employee conversation may seem casual to the boss but can feel like an interrogation to the employee. To diffuse this situation, I like to bring others into the conversation to even out the experience. I may turn a one-on-one discussion into a larger conversation by inviting people to join us and share their thoughts and experiences. It benefits me, because I get to hear more voices, and it helps put everyone else at ease.
4. Let the little stuff slide. If you are the kind of hands-on person who helped build the business from the ground up, you probably have insight or advice on everything from the capital budget to color of the carpet. But you don’t have to communicate every thought to the staff. If it’s not an important critique, let it go. I visited a flower shop in my company once and noticed the manager was not lining the trashcans with plastic bags. I know from experience that liners make the job easier, but I also know that I don’t need to communicate every idea that comes into my head. It just creates a climate of nitpicking.
Conversations that take place up and down the food chain – between supervisor and staff, people of different departments and the boss and the new employee – are often the source of great new ideas.
As the boss, it’s your job to get those conversations started and keep them going. You have a chance to make that happen (or achieve the opposite) every time you open your mouth.
7 Tips to Get Your Team to Actually Listen to You
Original post entrepreneur.com
Right from the outset, entrepreneurs must pay attention to every communication and opportunity for sharing their passion and vision. They must communicate effectively, so they can inspire others to come aboard. They must speak honestly and in ways that reveal their personal character and genuine connection. Yet, this sort of communication style can be difficult and time consuming – especially when demands are huge and time is scarce.
There is far more to being an effective and authentic communicator than most entrepreneurs believe -- at least when they are starting out. Even if you think you’re good at speaking to your team and motivating them, there’s always more to learn.
Leadership communication is a discipline and a practice: The more time, effort and heart you put in, the more effective you become. There really are no shortcuts.
That said, here are seven ideas that can help you focus your attention and improve your leadership communication.
1. Be authentic.
When you speak with your employees you must come across to them as real. This means sharing your beliefs and your struggles. Talking about moments of doubt but also explaining how you overcame them with more conviction and confidence than ever. Or perhaps share a story or two about a failure and disappointment in life.
The most convincing talks are when stories are shared about personal weaknesses and what one was doing to overcome them or disappointments and failures and how they were turned around.
2. Know yourself.
Dig deep. Know your values and what motivates you. If you don’t know yourself you cannot share or connect with others. People want to know what makes you tick as a human being not just as a leader. Share this and make yourself real.
3. Rely on a good coach or a trusted advisor.
Developing good communication skills takes time -- and in the rush of business, that’s scarce. Having someone who can push you to examine and reveal your interests and passions is enormously helpful and the value is immeasurable.
4. Read up on leadership communication.
If you can’t hire a coach, read all that you can. This is an inexhaustible resource, and you should never quit learning anyway. Books, articles, the internet; the possibilities are endless.
5. Make values visible.
Effective, empathetic communication and a commitment to culture can provide a solid foundation for your ideas and contribute to making it a reality. Many of today’s most successful companies have gone through dramatic crises. Their improvements often hinged upon genuine communication from the leaders.
For instance, think of Starbucks and Howard Schultz’s clear and genuine communications about the importance of managers and baristas being personally accountable for future success. Your employees want to know what you and the company stands for. What is the litmus test for everything you do? These are your values. Talk about them but you must always be sure to “walk the talk” and live by them.
6. Engage with stories.
You can't rely on facts and figures alone. It’s stories that people remember. The personal experiences and stories you share with others create emotional engagement, decrease resistance and give meaning. It is meaning that gets employees' hearts and fuels discretionary effort, thinking and desire to actively support the business.
Once someone was implementing a massive pricing cut. He could have presented reams of data about this change and why it needed to be made. Instead he invited in four clients of the firm who had written letters about why after more than 10 years they had decided to leave due to our pricing being noncompetitive. Everyone was engaged and quite horrified to hear this feedback. Getting the team’s support for the change was much easier after that.
7. Be fully present.
There is no autopilot for leadership communication. You must be fully present to move people to listen and pay attention, rather than simply be in attendance. Any time you are communicating, you need to be prepared -- and to speak from your heart. Leadership communication is, after all, about how you make others feel. What do you want people to feel, believe and do as a result of your communication? This absolutely can't happen if you read a speech. No matter how beautifully it is written, it doesn’t come across as authentic or from your heart if you are reading it. Embrace what you want to say and use notes if you must, but never read a speech if you want to be believable and move people to action. (And yes this requires a ton of preparation).
Your speeches are visible and important components of your role as a leader. Successful entrepreneurs are conscious of that role in every communication, interaction and venue within the organization and beyond. They also know that while today’s world provides a wide range of ways to communicate to your organization -- mass email, text, Twitter, instant message and more --connecting is not that simple. Electronic communication is a tool for communicating information -- not for inspiring passion.
15 tips to improve employee engagement
A great deal of time is spent making sure the communication between you and your consumer is on point. But what about the communication between you and your employees?
Gary Grates, a globally renowned, recognized, and respected expert in employee engagement, wrote in a 2004 PRSA Strategist article, "“Employees want to know what the company believes in and what it will fight for — its mission, vision and values; its foundational principles. They will commit or not commit, engage or disengage, on the basis of that foundation.”
Engaged employees are involved, enthusiastic and committed to their work. Their engagement can determine the outcome of a project.
However, engaged employees are not the norm according to Gallup's 15 years of research. Employee engagement has consistently averaged less than 33 percent in the United States. Worldwide it's even lower at just 13 percent.
So, what can you do as an employer to change that trend?
Behan Communications put together this list of 15 ways to improve internal engagement.
- Be clear and concise:
Overwriting and using technical jargon will lead to confusion and misunderstanding. - Set the tone at the top:
CEOs and senior leaders need to set the tone. They need to be visible and accessible, and they need to understand that there’s a correlation between strategic employee communications and the achievement of organizational goals. - Understand your employees:
You may need to communicate differently with different audiences. For custodians who don’t use computers at work, e-mail is ineffective. To determine your employees’ needs and perceptions, consider surveying them regularly: Are they getting the information they need? - Use many channels:
Most people need to hear or see a message multiple times, in multiple ways, to understand it completely. Distribute your messages electronically, in writing, face-to-face and at forums and meetings. Your message should be consistent across all of these channels. - Provide context:
Employees need to hear information at multiple levels. Provide context (what external factors are at play?); explain strategy (why did we decide to respond this way?); and make it personal (how will this affect me?) - Be timely: make employees first!
When you prioritize your communications, always think of your internal people first. Your employees should hear it from you before they hear it from anyone else — they shouldn’t be surprised by a media report. - Be forthcoming and be continuous:
Always communicate, and communicate both good and bad news. If you are honest and candid in sharing bad news, your good news is more credible. - Match actions with words:
If you say you will address a situation in a certain way, do it. If you don’t, you’re undermining your credibility. - Emphasize face-to-face communications:
Although today’s employees may be more tech-savvy than ever, nothing beats human interaction: Most employees want to hear news and information from their supervisors. Managers need to be trained in how to communicate, and they need to have the right tools at hand. If you are expecting your managers to help explain a complicated change to the organization’s pension plan, you’d better provide them with talking points and handouts. - Create an organizational habit for communications:
You know you need to communicate about policies; health and safety; benefits; and how a job should be carried out. But remember that you also need to share information about your organization — what our your objectives? How are you performing? What are your plans and prospects? How can employees help? - Plan:
Be systematic and strategic. Have an editorial calendar that spells out what you’ll say, when you’ll say it, where you’ll say it and how you’ll say it. Develop a checklist of what needs to be communicated. - Measure effectiveness:
Set some objectives and be prepared to assess whether you have met them, whether they are employee engagement goals or perception goals. You might want to regularly assess engagement levels and ask employees whether the organization has communicated its strategy well. Do they understand how their daily work helps the organization meet its goals? - Facilitate two-way conversation:
One-way communication is a thing of the past. Individuals are empowered to talk back, and feeling “listened to” enhances feelings of trust. There are many ways to facilitate two-way communication, including face-to-face meetings; “town hall” meetings; interactive video interviews; Twitter questions; employee surveys; Q-and-A features on the employee intranet; and anonymous suggestions via e-mail or suggestion boxes. - Be objective:
Don’t “spin,” or try to dictate or assume how people should feel about the news you’re sharing. - Say “thank you” as much as possible:
If an employee feels appreciated, she’s more likely to feel engaged.
ACA Makes Tax Season Tougher For Small Companies
Original post insurancenewsnet.com
As more requirements of the health care law take effect, income tax filing season becomes more complex for small businesses.
Companies required to offer health insurance have new forms to complete providing details of their coverage. Owners whose payrolls have hovered around the threshold where insurance is mandatory need to be sure their coverage — if they offered it last year — was sufficient to avoid penalties.
Here are some of the issues related to the health care law that small businesses need to be aware of:
HOW MANY EMPLOYEES DO YOU HAVE?
Companies with 100 or more workers were required to offer affordable health insurance to employees and their dependents, but not their spouses, starting in 2015. Businesses with 50 to 99 workers must offer coverage starting this year; those with under 50 are exempt.
Owners who were on the hook for affordable insurance last year but didn't provide it may face thousands of dollars in penalties — $2,000 per employee per year, not counting the first 80 employees for the 2015 tax year, and the first 30 for 2016. So it's critical for them to know what their head count was — and many may not realize the calculations are based on a company's 2014 payroll, not 2015.
Here's where it gets complicated: Part-time workers and those fired during the course of the year can all be counted toward the threshold where coverage is required. So can some seasonal workers.
Part-timers work fewer than 30 hours a week under the health care law. They must be counted toward what are called full-time equivalent workers. If, for example, a company has two people who each work an average 15 hours a week, they count as one full-time equivalent employee working 30 hours. A company with 30 full-timers and 40 part-timers who average 15 hours a week each has 50 full-time equivalent workers and is required to offer insurance.
Another wrinkle: Owners with multiple companies that combined have 50 or more workers may be required to offer insurance, even if each of the individual companies has fewer than 50.
NEW TAX FORMS
Starting this year, businesses required to comply with the health care law must complete forms that detail the cost of their coverage and the names and Social Security numbers of employees and their dependents. The government will use the information to determine whether a company provided coverage that was affordable under the law, or whether it must pay a penalty.
Accountants have described the forms as labor-intensive, because they require information from a number of sources including payroll and health insurance records. Many companies have had to hire workers or payroll services to complete the forms.
The IRS, recognizing the forms' complexity, has extended the deadlines for the forms to be filed. Forms 1095-B and 1095-C, which must be given to workers, are now due March 31. Forms 1094-B and 1094-C, required to be filed with the IRS, are due by May 31 if they're not being submitted on paper, and June 30 if filed online.
WELL-INTENTIONED BUT ILLEGAL
Some employers with fewer than 50 workers and who don't offer insurance have tried to help staffers with the costs of coverage by giving them money toward their premiums, with the intention that the money will be tax-free. That could get owners into expensive trouble with the IRS — they can be fined $100 per day per employee receiving the money, a total of $36,500 per year for each worker.
The problem is that some employers treat this money as a health benefit, but it's not coverage that complies with the law. So they can be penalized.
Companies can help employees with their premium costs by giving them a raise or a more traditional bonus, says Mark Luscombe, a tax analyst with the business information company Wolters Kluwer. That means withholding income and what's known as payroll taxes — Social Security and Medicare — from employees' paychecks, and for companies to pay their payroll tax share.
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.
Stay-Put Counteroffers Can Backfire, CFOs Say
Originally posted by Stephen Miller on June 12, 2015 on shrm.org.
Although employee retention concerns continue to mount, a new survey suggests counteroffers aren't the answer when it comes to keeping valued talent.
In research findings published in June 2015 by staffing firm Robert Half, eight in 10 (78 percent) chief financial officers (CFOs) said they don't extend counteroffers to keep employees from leaving.
One reason may be because CFOs believe this tactic can have a ripple effect. Among the 21 percent of CFOs who do make counteroffers, roughly one-third (34 percent) said doing so necessitated raises for other employees in the department.
The survey was based on interviews with more than 2,200 CFOs at companies in more than 20 of the largest U.S. markets.
CFOs were asked and responded:
CFOs who said they'd extended counteroffers were subsequently asked and responded:
“Counteroffers are not an effective retention tool," said Paul McDonald, senior executive director for Robert Half, in a news release presenting the findings. “Offering more money to someone to prevent him or her from quitting doesn't typically solve the issue that prompted that person to resign in the first place. It can, however, upset the company's salary structure, prompt loyalty concerns and foster resentment among the rest of the team who may feel that they, too, must threaten to quit to receive a raise.”
Businesses must regularly review their compensation levels, particularly in today's job market, McDonald added. “Waiting until an employee quits is too late to think about whether the salaries you offer are strong enough. Employees’ frustration over their salaries could fester into a bigger problem of feeling undervalued and unappreciated, which more money via a counteroffer won’t be able to remedy.”
11 elements of a good enrollment plan
Originally posted February 9, 2015 by Marty Traynor on Benefits Pro.
Spurred by time-saving devices such as smart phones and tablets, our pace of life has sped up. And enrollment is no exception.
In thinking about how to open this column, I took three minutes to look up the fact that Usain Bolt took 9.58 seconds in his world-record 100-meter run; it took Michael Phelps 49.82 seconds to set a world record in the 100-meter butterfly; and Abraham Lincoln delivered the Gettysburg Address in about two minutes. Add that all up and you have six minutes, which is about the time most employees who enroll online will spend making their voluntary benefit enrollment choices this fall.
Employees are making decisions that affect their financial security in six minutes. But how can they be expected to make a good decision in that time, especially when faced with a growing list of options?
We have to plan what we can do to help employees make good choices and provide them with information via a coordinated enrollment communications plan. These elements help:
- Pre-enrollment communications such as email notices and web banners, and on-site promos like posters and table tents
- Informational on-site group meetings and/or webinars covering all shifts
- Access to a call center during open enrollment and a help line for new hires and life event changes during the year
- Evening webinars or access to call/chat services for employees and their spouses
- Engaging tools such as videos and calculators
- Creative approaches such as contests or prize drawings for all who enter the system
- Recommended product bundles based on key demographics of the employee and their family
- Careful product ordering
- Auto enrollment of prior year choices
- Speaking of employees who have already selected a voluntary plan — make any buy-up option as easy as possible to encourage repeat purchases and accommodate growing needs
- Internal response tracking inside enrollment systems so follow-up emails automatically go from HR to those who have not entered the system, and to those who have not completed the process
Employees have to make their benefits elections in a hurried, nearly thoughtless environment. We can help them make better decisions during that six-minute decision process by active support of an enrollment plan.
Better understanding of benefits helps both employee and employer
According to new research from Unum, a recent survey of more than 1,500 employees shows only half of U.S. employees would rate their employer as excellent or very good. Even less than that, the 47% who were offered benefits by their employer, rated the actual benefits as excellent or very good — some of the lowest ratings for benefits the Unum has seen in recent years.
The data points to a lack of employees getting information needed on the benefits being offered. Only 33% of those surveyed who were asked to review benefits in the prior year rated the benefits education they received as excellent or very good — a drop from 2012 and reversal of the upward trend since 2009.
“Offering employees effective benefits education can contribute to satisfaction with their employer,” says Bill Dalicandro, vice president of the consumer solutions group at Unum. “Even if employees don’t have a particularly good benefits package, those who say they received quality education about the benefits they are offered are far more likely to consider their employer a very good place to work.”
Employers can also get a win when providing educational guidance in choosing the right benefits. Correlation between employee satisfaction with their benefits continues to run parallel with overall employer satisfaction.
More than three-quarters of those employees who rate their benefits package as highly also rate their employer as an excellent or very good place to work. By contrast, only 17% of employees who consider their benefits package to be fair or poor rate their workplace as excellent or very good.
Additionally 79% of employees who reviewed benefits in the past year and rated their education as excellent or very good also rate their employer as excellent or very good — compared to 30% who said the education they received was fair or poor.
The survey also found:
- 40% of employees say they understand supplemental medical coverage somewhat or very well.
- 47% say they understand critical illness insurance somewhat or very well
- 48% whose employers offered long or short term disability insurance said no one explained disability insurance to them.
- 66% agree employers should do a better job educating employees about these important benefits.
“This research underscores the value of an effective benefits education plan, because when an employee understands their benefits, they tend to value them more and in turn may then value their employers more for providing access to them,” Dalicandro adds.