Employee financial health connects to physical health
Did you know that there is a direct corelation between financial and physical health? This article from Benefits Pro is a great read explaining the link between an employee's financial and physical health by Caroline Marwitz
LAS VEGAS -- Are poor physical health and poor financial health connected? The benefits industry is making the link, if you consider how many deals between health-related benefits companies and retirement providers have occurred lately.
Obviously, the poor, at least in America, have a more fragile state of health than the more affluent. And as we age, the potential for unplanned health events to hurt us financially increases -- and that's important for retirement advisors and plan sponsors to remember. But what about your typical employees who are neither poor nor elderly?
A study in the journal Psychological Science looked at worker attitudes and actions to find out whether poor physical health and poor financial health might be linked, and how.
The researchers studied employees who were given an employer-sponsored health exam and were told they needed to change certain behaviors to improve their health. Which employees made the changes and who blew them off?
The researchers accounted for external factors such as different levels of income and physical health, and differences in demographics. Yet the results were still startling:
“Employees who saved for the future by contributing to a 401(k) showed improvements in their abnormal blood-test results and health behaviors approximately 27% more often than noncontributors did,” the researchers concluded in Healthy, Wealthy, and Wise: Retirement Planning Predicts Employee Health Improvements.
The employees who made the behavior changes to better their physical health were also the ones who were taking action to better their financial health.
Employee attitudes about the future and how much control they have over it affect whether they take care of their physical health and their financial health. That sense of control, or conversely, that feeling of no control, and thus, no investment in long-term results, is one reason why some employees might not participate in retirement plans, and, maybe, wellness and well-being programs.
What if, along with the retirement health-care cost calculators many retirement plan providers offer, there was a fatalism calculator too? That way you could see right away each person’s sense of control or feelings of inevitability about their future and help them more efficiently.
Because if someone is more fatalistic, telling them about their 401(k) match or pension options isn’t going to make them enroll in a retirement plan. Scaring them with statistics about the high costs of health care in retirement isn’t going to do the trick either. Instead, consider the following points for such employees:
- They can be helped to see that the future is a lot more unpredictable (and complex) than they realize, both negatively and positively.
- They can be helped to realize that even the smallest actions they undertake can have a big impact in the long term.
- They can be helped to understand that seemingly unobtainable goals can be broken down into steps and tackled bit by bit.
Look behind employee behavior for the unexamined biases and long-held assumptions that are causing it. If they can see that it’s not who they are that determines their future but what they do, it's a start.
See the original article Here.
Source:
Marwitz C. (2017 March 19). Employee financial health connects to physical health [Web blog post]. Retrieved from address https://www.benefitspro.com/2017/03/19/employee-financial-health-connects-to-physical-hea?ref=hp-top-stories
What it Takes to Make Good Decisions in the New World of Work
With many companies taking employee education and training into their own hands employers must be properly prepared for the changing future. Check out this great article from SHRM about what employers must do to keep pace in the ever evolving workplace by Ross Smith and Madhukar Yarra
We live in a world where phenomena such as the internet, globalization, social media, and mobility are accelerating change faster than ever before. Today’s digital age fed by big data is manifested in new businesses disrupting existing business models, which are remnants of the industrial era. These new models, typified by the Ubers, Amazons, Teslas, Airbnb’s and Facebooks of the world, are fossilizing the older generation of companies.
It is difficult for the education system to keep pace with this kind of change. The education system is a behemoth whose design is evolving to address the need for agility and speed. They change after the fact and therefore almost always take refuge in ‘best practices’. The MBA as we know it, has also fallen prey to this.
The MBA has been designed to provide a pool of mid-level managers for large corporations and questions arise about the future. Armed with an MBA, new hires walk into a large corporation with a desire to prove their worth through a strong knowledge of historical best practices. They may miss the value of ‘first principles’ thinking, and more often than not, face challenges to make an impact. Over time, this can create a disconnected or disillusioned workforce.
The question then becomes - if emerging and disruptive business models no longer subscribe to historical best practices, and by extension, to business schools, as their source for leadership, where should they look? What is that institution or model that allows individuals to build decision making capabilities in today’s world?
The reliance on irrelevant frameworks, outdated textbooks, and a historical belief in “best practices” all run counter to how a leader needs to be thinking in today’s fast paced digital world. There are no established best practices for marketing in a sharing economy or creating a brand in a digital world. The best practices might have been established last week. The world is moving fast, and leaders need to be more agile. Today, Millennials are leading teams, calling the shots in many corporations, which means that the energy created is one that leaves little time for rules and structures to effectuate and/or create impact. Making good decisions in today’s business world requires a new and different kind of thinking, and there are tactics that can help grow these new types of leaders.
Importance of questions: most leadership and business programs today evaluate and assess students based on answers, not the ability to ask good questions. Thoughtful and incisive questions lead to innovation and as business problems become more granular and interconnected, this skill will help leaders arrive at better decisions.
Experimentation over experts: Students are encouraged to seek “expert advice” rather than formulating their own hypotheses that can be tested as low cost experiments. While consulting with those who have walked the same path has its benefits, relying on the experiences of others may hinder growth, particularly when change is accelerating. The shift to globalization, digitization, social, and agile are changing rapidly, there is no “right answer”, so experimentation is a crucial skill.
Interdisciplinary perspective: Disciplines and industry sector models are glorified at a time when discipline barriers are being broken to create new ideas. A conscious intermingling of disciplines creates more fertile minds for innovative thoughts to occur.
In today’s management programs, outdated content and old-school delivery mechanisms are limiting students and businesses alike. There is a dire need to help business and young talent alike embrace a new art of problem solving, essential for the realities of today.
Many companies are starting to take education and employee training into their own hands. The advent of online courses, MOOCs, and other innovative programs in employee education are supplementing traditional education.
HR professionals can learn from companies who have set up their own deep technical training programs. With the work they do to augment decision science skills, Mu Sigma University is a great example of a modern day tech company, building skills across technology, business, analytics, and design. The workforce is changing. Many traditional jobs are being replaced with automation, robots, cloud-based machine learning services, and artificial intelligence – while at the same time, the demand for high end engineering, analytics, business intelligence, data and decision science is booming. Many companies, such as Mu Sigma, are spinning up advanced technical training investments to ensure their employees are equipped for a rapidly evolving future.
See the original article Here.
Source:
Smith R. & Yarra M. (2017 March 15). What it takes to make good decisions in the new world of work [Web blog post]. Retrieved from address https://blog.shrm.org/blog/what-it-takes-to-make-good-decisions-in-the-new-world-of-work
3 things managers can’t say after FMLA requests
Do you know which question you can ask any employee requesting FMLA leave? Look at this great article from HR Morning about what employers can and cannot say to an employee on FMLA leave Christian Schappel
You know when employees request FMLA leave, those conversations have to stick to the facts about what the workers need and why. The problem is, a lot of managers don’t know that — and here’s proof some of their stray comments can cost you dearly in court.
Three employers are currently fighting expensive FMLA interference lawsuits because their managers didn’t stick to the facts when subordinates requested leave.
Don’t say it!
The real kick in the pants: Two of the lawsuits were filed by employees who’d received all of the FMLA leave they requested — and the courts said the interference claims were still valid. How’s that even possible? Keep reading to learn about the latest litigation trend in the FMLA world.
Here’s what happened in each case (don’t worry, we’ve cut to the chase in all of them) — beginning with the words/phrases managers must avoid when a worker requests leave:
No. 1: ‘We expect you to be here’
James Hefti, a tool designer, was in hot water with his company, Brunk Industries, a metal stamping company.
Reason: Let’s just say he called a lot of people at work “my b____.”
After he ignored multiple warnings from management to stop using obscenities at work, the company planned to fire him. But it didn’t pull the trigger immediately.
Then, just prior to his termination, Hefti requested FMLA leave to care for his son, who was suffering from various mental health problems.
His manager, upon hearing of Hefti’s request, told him Brunk paid for his insurance and thus expected him to be at work.
When Hefti was fired a few days later, he sued for FMLA interference.
The company tried to get the suit thrown out, claiming his conduct and ignorance of repeated warnings gave it grounds to terminate him. But it didn’t win.
The court said the manager’s interactions with Hefti did raise the question of whether he was fired for requesting FMLA leave, so the judge sent the case to trial.
Cite: Hefti v. Brunk Industries
No. 2: ‘It’s inconsiderate’
Lisa Kimes, a public safety officer for the University of Scranton’s Department of Public Safety, requested FMLA leave to care for her son, who had diabetes.
Kimes was granted all the time off she requested. But in a meeting with her supervisor she was told that since the department was short staffed it was “inconsiderate” of her to take time off.
When her relationship with the department soured, she sued claiming FMLA interference.
The department tried to get her suit tossed before it went to trial. It had a seemingly reasonable argument: She got all of the leave she requested, so it couldn’t have interfered with her FMLA rights.
But Kimes argued that her supervisor’s comments prevented her from requesting more FMLA leave – thus the interference lawsuit.
The court sided with Kimes. It said she had a strong argument, so the judge sent her case to trial as well.
Suit: Kimes v. University of Scranton
No. 3: ‘I’m mad’
Judy Gordon was an officer with U.S. Capitol Police when she requested intermittent FMLA leave for periods of incapacitating depression following her husband’s suicide.
But before Gordon used any FMLA leave, a captain in the police department told her that an upper-level manager had said he was “mad” about FMLA requests in general, and he’d vowed to “find a problem” with Gordon’s request.
Then later, when she actually went to take leave, her manager became irate, denied her request and demanded a doctor’s note. He later relented and granted the request.
In fact, she was granted all the leave she requested.
Still, she filed an FMLA interference suit. And, again, the employer fought to get it thrown out before a trial on the grounds that Gordon had no claim because all of her leave requests were granted.
But this case was sent to trial, too. The judge said her superiors’ conduct could have a “reasonable tendency” to interfere with her FMLA rights by deterring her from exercising them — i.e., the comments made to her could’ve persuaded her not to request additional leave time to which she was entitled.
Suit: Gordon v. United States Capitol Police
Just the facts, please
Based on a thorough read-through of the court documents, each of these employers appeared to have a pretty good chance of winning summary judgment and getting the lawsuits thrown out before an expensive trial — that is, if it weren’t for the managers’ stray comments in each.
These cases have created two important teaching points for HR:
- Courts are allowing FMLA interference claims to be made if it appears an employee may have been coaxed into not requesting leave he or she was entitled to, and
- You never know when a stray remark will come back to bite you.
The best way to stay safe: Re-emphasize that managers must stick to the facts when employees request FMLA leave, as well as keep their opinions and other observations to themselves.
See the original article Here.
Source:
Schappel C. (2017 March 17). 3 things managers can't say after FMLA requests [Web blog post]. Retrieved from address https://www.hrmorning.com/3-things-you-cant-say-after-fmla-requests/
Is industry coming around to robo-advisor concept?
Have you ever thought about the future of employee benefits advisors? Take a look at this interesting article from Benefits Pro about the growth of robotic employee benefits advisors by Caroline Marwitz
LAS VEGAS -- Some advisors see robo-advisors as a competing force.
At the NAPA 401(k) Summit, you might expect some hostility to the concept. After all, the market for algorithm-based, non-human decision-making robo-advisors is expected to grow.
Business Insider’s research service, BI Intelligence, forecasts that by 2020, robo-advisors will manage $8 trillion in assets.
But the questions for two executives at two robo-advisor firms during a technology panel demonstrated more curiosity than hostility. Betterment for Business's Cynthia Loh and blooom’s (yes, three Os) Chris Costello fielded them and got in some marketing in the process.
The questions ranged from whether advisors can get data and metrics about results (yes), how good is the security and encryption of participant information (as good as a bank’s), whether rebalancing is participant-driven (no), whether there was a process to update employee risk tolerance and other information over time, as it changes (yes), to whether these robo-advisors partner with advisors to offer compensation (Betterment: yes, we have a separate arm of the business for that; blooom: ten dollars per participant doesn’t make a partnership conducive, though advisors can offer this service to differentiate themselves to plan sponsors).
The common wisdom is that robo-advisors, at least in the retirement industry, are aimed at people with fewer assets.
However, in the wider investment industry, the BI Intelligence research report noted: “Consumers across all asset classes are receptive to robo-advisors — including the wealthy. 49% of this group would consider investing some of their assets using a robo-advisor.”
For blooom, its market is not intended to be the wealthy, CEO and cofounder, Chris Costello, said, but rather “the people who don’t understand stuff.”
“All the way up the food chain, people are messing up their 401k plans,” Costello said. “We are targeting a segment of market most advisors aren’t targeting, most are well below 250,000 dollars.”
The stereotypical user of a robo-advisor is, of course, a millennial. But now, said Betterment’ for Business GM Cynthia Loh, “Everyone expects technology.” Even the clients have changed, she said. Where in the past it might be a tech company, within the last year companies of other kinds have come on board -- medical, legal, and financial services firms.
Taking aim at the traditional, minimalist way many employers offer information on retirement plans, Costello noted that there are always going to be employees who like to study their options and do their homework. “But that is not most Americans. Most Americans need this to be done for them. When I had wealthy clients, I didn’t tell them to go home and study up. We did the work for them. This brings the services that wealthy people have been getting for decades.”
Still, Loh added, Betterment embraces both the technology and the human side. “We recognize there’s always going to be a place for human advice.”
Because ultimately it comes back to the human side, not the technology side. Of course, the technology behind the algorithms is important. But something as warm and fuzzy as the participant questionnaire is also crucial.
In fact, recent guidance on robo-advisors from the Securities and Exchange Commission concerns itself with a robo-advisor’s questionnaire. Which makes sense, as it’s the information the algorithms use to make their decisions and the basis of their advice. Garbage in, garbage out. And the ability, which both firms offer, to consult with a human advisor, whether it might be by phone or by chat, is also important, at least to what we know about what plan participants want.
And the Department of Labor’s fiduciary rule has made many in the retirement industry feel that knowing as much as possible about a participant or client is key to successfully helping them as well as being in compliance.
See the original article Here.
Source:
Marwitz Caroline (2017 March 19). Is industry coming around to robo-advisor concept [Web blog post]. Retrieved from address https://www.benefitspro.com/2017/03/19/is-industry-coming-around-to-robo-advisor-concept?ref=hp-top-stories
10 tips to boost retirement savings
Do you need help boosting your savings for your retirement? Check out these great tips from Benefits Pro on how to increasing your retirement savings by Marlene Y. Satter
Americans are struggling to save enough money for retirement.
Now that pensions are going the way of the dodo and workers are relying primarily on Social Security and 401(k) plans—the latter if they’re lucky—it’s a struggle to find extra money to set aside against the day they leave the workplace.
In fact, many workers never plan to retire.
Considering how many workers don’t even have access to a retirement plan at work, trying to stretch dollars even a little bit further to set aside money for retirement can be a real challenge.
That’s pretty clear from the zero-to-minimum savings held by many Americans.
In fact, with 40 million working-age households lacking any retirement savings at all, and the average balance of retirement accounts a pitiful $2,500 across all households, it’s obvious that something needs to be done. But how much can people do on low incomes, fighting against the gender wage gap and shrinking benefits packages?
Perhaps it’s only baby steps they can take, but even those baby steps can pay off over the span of a career. So here are some suggestions that workers could definitely benefit from on how they might be able to squeeze just a little more out of that paycheck.
Depending on a worker’s age, some of these strategies will be more helpful for some than for others—but all can make a difference in the end result: stashing away enough money to pay for retirement.
Courtesy of a range of sources, including Schwab Retirement Plan Services, Forbes, Fidelity and others, here are 10 strategies to help workers boost their retirement savings.
10. Take advantage of the employer match.
If you’re lucky enough to work at a company that provides a 401(k) plan, Schwab suggests that you make sure your contribution level is high enough to take full advantage of the employer matching contribution.
Not saving enough to get the full employer match is leaving free money on the table. Look for economies elsewhere (fewer trips to the barista, brown-bag lunches) to increase your contribution till you get the full benefit of whatever your employer is willing to give.
9. No matter what you’re saving, keep increasing it.
Some people up their retirement contributions every time they get a raise; others do it when they hit some other significant milestone, such as an anniversary with the company.
Schwab, again, suggests that whether it’s a performance review, a birthday or some other occasion, you keep raising your retirement contribution even if it’s only by one percent at a time. It will all add up by the time you’re ready to retire.
8. Automate retirement plan increases.
While you’re busy increasing those contributions, automate them.
Set up an automatic increase that will add to your savings at regular intervals, even if you forget.
That way, whether you’re the type that actually remembers those special occasions on which you plan to boost contributions or you forget them, you can set it and forget it—and your retirement plan will do the rest.
7. Don’t forget the catch-up contribution.
If you’re 50 years old or older, remember that you’re allowed to put an extra $6,000 into your retirement account to catch up to where you ought to be.
That can help a lot as you approach retirement, particularly if you haven’t saved the maximum allowable in years past.
6. Check the fees on your investments.
This one doesn’t actually require you to find additional money to save. What it does require is that you review the investments in your retirement accounts and see how much the fees add up to.
If there are cheaper investments available in your plan—exchange-traded funds, for example, or target-date funds that offer lower fees—make sure they’re suitable for your particular needs and risk tolerance and then, if they’re appropriate, make the switch. Cutting down on the fees you pay will keep your balance growing.
5. Put yourself on a budget.
Particularly if you haven’t saved all that much for retirement and the Big Day is drawing near, see if you can adjust to a budget that reflects lower spending levels—something you might have to do in retirement anyway, if money is tight.
Whether or not you can sustain living on that budget, while you’re experimenting, take any money that you save from your usual outlay and put it into your retirement account. Better yet, open a Roth if you’re eligible. You’ll have already paid taxes on the money, if it’s coming out of your regular pay, and when you take it out of a Roth however much it’s grown to will be tax free. That will save you money both now and then.
4. Look into your health savings account.
If your benefits plan at work includes an HSA, check it out as a potential investment vehicle. While most people just put money in it to pay approved medical expenses, many don’t know that they can actually invest the money in an HSA and just let it grow; it’s not a use-it-or-lose-it account.
If it grows into retirement, you can then use the money to pay approved medical expenses tax free, which will stretch your other retirement savings further. (You can also use it for nonapproved expenses, but you’ll have to pay tax on the money upon withdrawal if you do that.)
3. Make sure you’re using the right kind of account.
Don’t just stick your money into a savings account and wait for retirement. Check out the potential of and differences among different types of accounts—savings, HSAs, Roths, traditional IRAs, 401(k)s—and put your money where you’ll get the most bang for the buck.
Contribute the maximum to your 401(k) to get full matching funds at work, and then look into opening a traditional or a Roth IRA. As previously mentioned, if you’ve already paid taxes on money contributed to a Roth, when you withdraw it in retirement it will be tax free (so it will go further).
2. Don’t forget about the Saver’s Credit.
Your income and income tax filing status determine whether you’re eligible for this one, aimed at low- to moderate-income households, but it’s a goodie—and if you’re married and filing jointly, both of you might be able to claim it.
The program, the official name of which is the Retirement Savings Contributions Credit, can give you $1,000 for contributing to a qualifying retirement account. Whether your retirement plan is an IRA, a 401(k), 403(b), 457(b) or even a SEP or SIMPLE IRA, you contribute the allowable amount, assuming your income level makes you eligible, and the government credits you 10 percent, 20 percent, or 50 percent of the first $2,000 you contribute to retirement savings for the year.
1. Remember that payroll contributions to a retirement plan can lower your taxes.
Yes, by following the instructions in earlier steps and boosting your retirement contribution at work, you could lower your tax bracket—and that could have you losing less of your take-home pay to increase that contribution than you thought.
Depending on your withholding rate, an increased retirement contribution might hurt less than you think—and that can encourage you to do even more. You can check with human resources or the payroll department to find out just how much the hit will save you. And who knows? It might lower your adjusted gross income enough to let you qualify for the Saver’s Credit—a real win-win situation.
See the original article Here.
Source:
Satter M. (2017 March 07). 10 tips to boost retirement savings [Web blog post]. Retrieved from address https://www.benefitspro.com/2017/03/07/10-tips-to-boost-retirement-savings?ref=mostpopular&page_all=1
Get The Best of Both Worlds
OSMA's Health Benefits Plan: Frequently Asked Questions & Answers
In response to the changes brought about by the Affordable Care Act (ACA), the Ohio State Medical Association (OSMA) plans to offer a Health Benefits Plan (HBP). The OSMA HBP will be a self-funded multiple employer welfare arrangement developed for Ohio physician practices. The HBP is currently pending approval by the Ohio Department of Insurance. If approved, it would be an innovative alternative to the ACA.
Q. How is the OSMA's HPB different from the ACA?
A. Unlike the current ACAstructure, the OSMA HBP
• Will be a self funded plan for small physician practices.
• Will offer a variety of plan designs that meet the minimum essential coverage requirement, including:
• Eight different options with deductibles ranging from $ 500 to $6,350 for single coverage (2x for family
coverage)
• Several plans with copays and prescription drug cards
• Will allow for the continued use of Health Reimbursement Accounts (HRA) and Health Saving Accounts (HSA).
• May be less expensive than many comparable options under the ACA.
• Will allow for changes in benefits and contribution roles al renewal without being "locked in" by the grandfathered status, and no monthly administrative billing fee.
Q. Will my current plan rates go up under the ACA?
A. The ACA premium will be dependent on a variety of factors and specific to each group. Our in-house insurance agent will help you understand your options and will be in a position to help you get the most affordable benefit option available.
Q. Do I have to switch doctors?
A. The OSMA HBP utilizes the SuperMed Plus network from Medical Mutual of Ohio, one of the largest networks of providers and facilities in the state. You should, however, always check to make sure your doctor is in network prior to any service. (https://providersearch.medmutual.com/NetworkRealignment.aspx)
Q. Does the OSMA HBP provide the employer with a Summary Plan Description (SPD)?
A. Yes. We provide each employer with an SPDfor the OSMA HBP that meets ERISA compliance regulations. (All employers are responsible for providing SPD's for all of their health and welfare benefits.)
Q. What is the cost to me for joining the OSMA HBP?
A. Each group will have a monthly funding rate based on a variety of factors including but not limited to:
• Number of CoveredEmployees
• Medical History
• Gender
• Tobacco Usage
• Location
Q. Why should I change plans now?
A. Due to the constant policy evolution of the ACA and the uncertainty of future year premiums, many groups will be able to experience a competitive rate that may not be available from Ohio's ACA Marketplace. The OSMA Insurance Agency will provide an easy to understand comparison between the ACA plans and the HBP.
Q. If I leave my current plan (including an ACA plan) will I be subject to preexisting conditions limitations?
A. No. The coverage will be offered on a guarantee issue basis with no preexisting condition exclusion.
Q. What happens if I decide to leave the OSMA HBP in the future?
A. Members may elect to withdraw from participation in the Plan at the end of a calendar month by giving written notice to the Plan at least thirty (30) days prior to the end of such month.
Q.Is there a fee to be part of the OSMA HB Plan?
A. No. There is no fee to join the OSMA Health Benefit Plan but at least one insured must be an active member of the Ohio State Medical Association.
Q. Is the OSMA HBP permitted by the ACA?
A. Yes. The OSMA HBP is a self-fund ed option allowed under the ACA. The OSMA Insurance Agency is authorized to offer health insurance plans as a Federally-facilitated Marketplace Certified agent and Certified Patient Protection and Affordable Care Act (PPACA) Professional.
Q. What is the OSMA Health Benefit Plan's legal structure?
A. The OSMA HBP is technically known as a multiple employer welfare arrangement (MEWA). A MEWA provides health and welfare benefits to employees of two or more employers who pool their contributions, enabling them to offer health insurance rates and benefits typically available only to larger groups.
Q. How secure is the OSMA's HBP?
A. The Ohio Department of Insurance and several federal government agencies coordinate the oversight and regulation of the OSMA HBP. This multi-jurisdiction gives the State of Ohio's Department of Insurance primary responsibility for overseeing the financial soundness the OSMA HBP, while the U.S. Department of Labor provides oversight for employee benefit plans and the Internal Revenue Service ensures the nonprofit tax status of the OSMA HBP.
Q. Is there a situation when my practice should use the ACA's marketplace options?
A. The Ohio Department of Insurance and several federal government agencies coordinate the oversight and regulation of the OSMA HBP. This multi-jurisdiction gives the State of Ohio's Department of Insurance primary responsibility for overseeing the financial soundness the OSMA HBP, while the U.S. Department of Labor provides oversight for employee benefit plans and the Internal Revenue Service ensures the nonprofit tax status of the OSMA HBP.
Q. How do I learn more about the OSMA Health Benefit Plan?
A. Contact Saxon' s Expert at jcharlton@gosaxon.com or visit our website at https://gosaxon.com/get-the-best-of-both-worlds-with-osma/
For the full download click Here.
The benefits of financial wellness counseling
Are your employees being properly educated on the benefits on their financial well-being? If not take a look at this article from Benefits Pro about the value of educating your employees in financial wellness by Jack Craver
Money Management International, a nonprofit credit counseling organization, is touting the results of a recent survey it conducted as evidence that employers can significantly reduce stress among their employees by offering them financial counseling resources.
MMI announced recently 86 percent of the 150 employees it provided financial counseling to at an Oregon-based nonprofit health agency say they have less stress related to money as a result of the counseling.
In addition, most of the employees at Samaritan Health Services say the counseling led to them achieving certain financial goals, such as reducing debt (60 percent), setting aside more money for retirement (38 percent), boosting their credit score (30 percent) or buying a home (8 percent).
"At MMI, we know that financial coaching, counseling, and education work, but seeing the incredible, positive impact this program has made on the financial outlook of these clients is simply amazing,” says Julie Griffith, Mapping Your Future account manager, in a statement accompanying the study’s release.
Other research has shown employers are increasingly viewing financial counseling as a key component of wellness initiatives due to the significant psychological and emotional toll money-related anxiety takes on employees.
In addition to causing depression, sleep deprivation and all sorts of health problems that reduce an employee’s productivity, financial stress often distracts employees from their work. A survey last year showed that 37 percent of U.S. employees report spending time on the job thinking about or dealing with personal finances.
The awakening to the importance of financial wellness coincides with a number of studies which shed light on young Americans’ lack of savings. One study found a solid majority of Americans have less than $500 in savings. Another found that the U.S. personal savings rate was just 5.7 percent, roughly half of what it was 50 years ago.
See the original article Here.
Source:
Craver J. (2017 March 08). The benefits of financial wellness counseling [Web blog post]. Retrieved from address https://www.benefitspro.com/2017/03/08/the-benefits-of-financial-wellness-counseling
Caregiving Benefits Can Sharpen Your Competitive Edge
Interesting article from the Society of Human Resources about the benefits of leveraging caregiving benefits in your employee benefits program by Hank Jackson
Whether caring for an aging parent, welcoming a newborn child or handling family medical situations, life events can create some of the most stressful and demanding challenges in our personal and work lives. For those without employer-provided paid leave, the burden is even heavier. People often need extended periods of time off to cover responsibilities at home, but many are forced to rely on the federal floor of unpaid leave guaranteed by the Family and Medical Leave Act.
High costs are cited as the biggest barrier to paid leave, but now, more than ever, companies risk losing great talent to rivals with more robust policies—here and abroad. In addition, employers struggle with a growing patchwork of state and local leave laws that hinder innovation and add compliance costs. This is why SHRM is advocating for public policies that would provide relief to employers while guaranteeing paid leave and expanded flexibility options for full-time and part-time employees. The issue of paid leave is a hot one—featured during the presidential campaign and poised to be a focus of congressional consideration in 2017.
Last year, more than two dozen large U.S. employers—including American Express, Deloitte, Ernst and Young, Campbell’s, First Data and Etsy—announced they would significantly strengthen paid family leave benefits. Their approaches vary, ranging from extending the time employees can take paid leave to broadening categories of eligible individuals and covered situations. But in all instances, a powerful business case was behind the decision. They believe it is a winning strategy and are promoting it widely to stakeholders and shareholders.
A carefully analyzed and applied family leave benefit can be a differentiator in today’s hyper-competitive talent marketplace. Even medium-sized and small enterprises can offer budget- and family-friendly policies, such as flexible schedules. The important thing is to develop a workplace where an employee’s work-life needs are valued and supported, balanced with the right benefits, rewards and adaptability across an employee’s life cycle.
Paid parental leave and other work-flexible programs are not only about competing or compliance. They are about doing the right thing for the organization and the employee. As HR professionals, it’s up to us to help our organizations grow a culture where both employees and employers win. This is part of the compact to create the 21st Century workplace employees of all ages want—innovative, fair and competitive with other businesses.
See the original article Here.
Source:
Jackson H. (2017 March 09). Caregiving benefits can sharpen your competitive edge [Web blog post]. Retrieved from address https://blog.shrm.org/blog/caregiving-benefits-can-sharpen-your-competitive-edge
Why employers should rethink their benefits strategies
Has your employee benefits program grown old and stale? Take a look at the great article from Employee Benefits Advisors about the benefits of upgrading your employee benefits to match your employees' needs by Chris Bruce.
Historically, employee benefits have been viewed as a routine piece of the HR process. However, the mentality of employees today has shifted, especially among the growing population of millennial employees. Today’s workforce expects more from their employers than the traditional healthcare and retirement options, in terms of both specific benefit offerings and communications about those offerings.
For companies, it’s critical they address the evolving needs of their workforce. With unemployment rates plunging to their lowest levels since before the financial crisis, the search for talent is heating up, and organizations need to work harder than ever to retain top talent in a competitive job market. To do this, I see three steps that organizations need to take when rethinking their benefits strategy and engaging with employees: embrace a proactive rather than reactive benefits strategy, think digital when it comes to employee communications and consider the next generation of employee benefits as a way to differentiate from the competition.
1. Reconsider your benefits evaluation process
The benefits process at most companies is reactive — executives and HR only look to evaluate current offerings when insurance contracts expire or a problem emerges. When the evaluation does happen, the two factors that often concern employers the most are product and price. Employers often gravitate toward well-known insurers that offer the schemes that appear familiar. However, this can often lead companies to choose providers who fall short on innovation and overall customer experience for employees.
This approach needs to be flipped on its head. Companies should be proactive in determining which benefit schemes best meet the needs of their workforce. The first step is going straight to the source: talk to employees. Employers can’t know what benefits would be most appealing to their employee base unless they ask. By turning the evaluation process to employees first, companies can better tailor new benefits to meet the needs of their workers, and also identify existing benefits that might be outdated or irrelevant, therefore saving resources on wasted offerings.
Data and analytics also are playing an increasing role across the HR function, and benefits is no exception. By leveraging technology solutions that allow HR to track benefits usage and engagement, teams can better determine what is resonating with employees and where benefits can be cut back or where they should be ramped up.
2. Put down the brochure and think digital engagement
Employee education is another area of benefits that can often perplex companies. According to a recent survey from Aflac, half of employees only spend 30 minutes or less making benefit selections during the open enrollment period each year. This means employers have a short window of time to educate employees and make sure they are armed with the right information to feel confident in their benefits selection.
To do this effectively, HR needs to move past flat communication like brochures, handouts and lengthy employee packets and look for ways to meet employees where they live — online. By testing out innovations that create a rich experience, while still being simple and intuitive, employers can grab the attention of their workforce and make sure key information is communicated. For example, exploring opportunities to create cross-device experiences for employees so they can interact on-the-go, including augmented reality applications or digital interactive magazines. Additionally, for large corporations, hosting a virtual benefits fair can provide a forum for employees to ask questions in a dynamic setting.
3. Embrace the next-generation of benefits
As organizations become more savvy and nimble, personalization will have a huge impact in encouraging employee engagement and driving satisfaction among today’s increasingly diverse workforce. We have already started to see some companies embrace this new approach to benefits, adding out-of-the-box items to normal offerings — from debt consolidation services and wearable health tracking technology to genome testing and wedding concierge services.
The fact is, the days of “status-quo” benefits are gone, and employees today want benefit options that match their current life circumstances. To best engage employees, organizations need to be proactive in evaluating benefits regularly and using analytics to track usage, identify opportunities to implement digital communication elements and look for ways to introduce new benefits to meet the needs of their employee base. By following these steps, organizations can gain a competitive edge when it comes to attracting and retaining top talent.
See the original article Here.
Source:
Bruce C. (2017 March 10). Why employers should rethink their benefits strategies [Web blog post]. Retrieved from address https://www.employeebenefitadviser.com/opinion/3-steps-employers-can-take-to-rethink-benefits-strategy?feed=00000152-1377-d1cc-a5fa-7fff0c920000
Progressive benefits are the lure for new talent
There are many different ways to attracted new talent to your workplace. Take a peek at this freat article from Employee Benefits Advisors about which benefits are best for attracting new talent by Paula Aven Glagych
Live trees indoors, pets at work and an in-office happy hour. Underground Elephant is very forward-thinking when it comes to how it treats its employees and the benefits it offers.
From its fun headquarters space in the east village of San Diego to its outside-the-box thinking on workplace benefits, the digital marketing company “wants to really create an environment where employees want to come to work every day and feel like they are being rewarded,” says Amy Zebrowski, HR business partner at Underground Elephant. “It is a very challenging and fast-paced environment.”
Underground Elephant, which was founded in 2008, provides marketing and technology services to financial service and insurance companies. It offers staffers healthcare and retirement benefits but wanted to show them that it is invested in their education and their family’s education by offering a choice between three non-traditional benefits. People who have worked for the company for one year can choose between a student loan repayment program through Student Loan Genius; a 529 college savings plan through Gradvisor; or $2,000 in company stock options.
If they choose the student loan or college savings plan options, Underground Elephant will contribute $1,500 a year to the program.
Gradvisor founder and CEO Marcos Cordero had wanted to offer a student loan reimbursement program for a couple of years. The company hires many entry-level employees straight out of college, trains them and helps them build their careers at the company.
“We know a lot of employees with student loan debt. We wanted to help them address that and support their financial wellbeing. We didn’t want to exclude employees who don’t have student loans. Our goal was to create a more inclusive program,” Zebrowski says.
Student Loan Genius’ platform allows employees to explore different loan repayment options and to find the one that best fits their situation. Employees can also have their student loan payments taken directly out of their paycheck each month.
The Gradvisor 529 college savings plan helps parents and grandparents save money for future educational expenses.
The cost of college
Cordero says that his 529 platform is popular because recent Gallup data shows that “for employees with children under 18, this is their number one financial concern. It supersedes retirement and unexpected medical bills.”
He added that the cost of college is rising faster than any other expense in the home and millennials, in particular, are feeling the pinch. Many of them left college with huge student loans and they want to make sure their children don’t fall into the same trap. Baby Boomers are also intrigued by the 529 plan because they have “more disposable income to help grandchildren save for college,” Cordero says.
He believes that this benefit will continue to grow over the next decade, but currently “more employers offer pet insurance than college savings.” That is in large part due to the state-by-state complexity of the programs. Each state offers a different 529 plan.
The Gradvisor platform takes into consideration an employee’s risk tolerance, financial situation and household tax filing when determining the best 529 plan for them. The company serves as a fiduciary so it takes “all of those inputs and recommends the most suitable and best fit investment option and asset allocation for the client. We don’t get any commissions or sales charges from the 529 plan. Our advice is 100% objective,” he says. Companies pay to offer the program on a per user per month basis.
“If you look at our stats, our customers tend to save earlier. We’re rolling out this really intuitive step-by-step platform that takes a lot of that fear or intimidation away,” Cordero says.
The average parent who takes advantage of Gradvisor starts saving when their child is five years old, compared to seven in the general population, which adds a couple more years of compounded growth. They also save twice as much as the average person.
Both the student debt repayment and college savings benefits programs were introduced to the company’s employees in January for implementation in March.
“The response has been great. All of our employees are excited about it. It can be a huge help with financial expenses if you are paying toward a student loan it is reducing the overall interest of the life of the loan. Overall it is very positive,” Zebrowski says.
The company’s primary goal in offering these three benefits was to retain good employees and to “show we are invested in their education and their family’s education and financial wellness,” she says.
Based on the company’s younger employee base, there are more participants in the student loan program, but there’s also a lot of interest in the 529 plans.
“I think a lot of people are conscious of the future and saving for families down the line. We’ve had a good response to both,” Zebrowski says.
The company offers a 1% employer match on all employee contributions to its 401(k) plan. The company employs 55 people currently and has been listed as one of the fastest-growing companies in its industry.
The benefit of perks
Underground Elephant wants to be innovative with its benefits because California’s tech industry is very competitive. Many people want to live in San Diego, so “attracting talent, in addition to that retention piece, that certainly factors in,” she says.
The company’s new headquarters building is unique in that it has live trees in the middle of the work space.
“The idea is to make it more open to give people the feeling of being connected to the outdoors,” she says. It has pool, ping pong and is setting up a new game room so employees can get together and have fun. It also has an onsite bar where the company offers regular happy hours.
Employees can bring pets to the office and it has a snack area where the company provides breakfast or lunch once a week.
For the past couple of years, the company has participated in a forum program where the company is divided into groups of eight to 10 employees and these groups participate in challenges throughout the year, including cultural challenges, scavenger hunts, community and charitable events.
“Each year we reevaluate our cultural programs to see what is working and what isn’t working; what people enjoy. The goal is to create as much engagement as possible,” she says.
Underground Elephant offers a full suite of health benefits, including full medical, dental and vision, long and short term disability and voluntary life insurance.
“We want to prepare people for success here or outside the company. Ultimately, the goal is to give people the skills and experience to promote within Underground Elephant or to transfer to other jobs as well,” she says. “Our people tend to be very successful.”
See the original article Here.
Source:
Glagych P. (2017 February 28). Progressive benefits are the lure for new talent [Web blog post]. Retrieved from address https://www.employeebenefitadviser.com/news/progressive-benefits-are-the-lure-for-new-talent?feed=00000152-1377-d1cc-a5fa-7fff0c920000