ACA Reporting Deadlines Quickly Approaching

Affordable Care Act (ACA) reporting under Section 6055 and Section 6056 for the 2020 calendar year is due in early 2021.  Specifically, reporting entities must:

  • File returns with the IRS by March 1, 2021, since Feb. 28, 2021, is a Sunday (or March 31, 2021, if filing electronically); and
  • Furnish statements to individuals by March 2, 2021.

Originally, individual statements were due by Jan. 31, 2021. However, on Oct. 2, 2020, the Internal Revenue Service (IRS) issued Notice 2020-76 to extend the furnishing deadline.

Notice 2020-76 does not extend the due date for filing forms with the IRS for 2020. Notice 2020-76 also provides additional penalty relief related to furnishing forms to individuals under Section 6055.

Action Steps

Despite the delay, the IRS is encouraging reporting entities to furnish statements as soon as they are able. No request or other documentation is required to take advantage of the extended deadline.

Section 6055 and 6056 Reporting

  • Section 6055 applies to providers of minimum essential coverage (MEC), such as health insurance issuers and employers with self-insured health plans. These entities generally use Forms 1094-B and 1095-B to report information about the coverage they provided during the previous year.
  • Section 6056 applies to applicable large employers (ALEs)—generally, those employers with 50 or more full-time employees, including full-time equivalents, in the previous year. ALEs use Forms 1094-C and 1095-C to report information relating to the health coverage that they offer (or do not offer) to their full-time employees.

The ACA’s individual mandate penalty was reduced to zero beginning in 2019. As a result, the IRS has been studying whether and how the Section 6055 reporting requirements should change, if at all, for future years. Despite the elimination of the individual mandate penalty, Section 6055 reporting continues to be required, although transition relief from penalties is available in some situations, as described below. Under this relief, individual statements do not have to be furnished if certain requirements are met.

 

Standard Deadlines

Generally, forms must be filed with the IRS annually, no later than Feb. 28 (March 31, if filed electronically) of the year following the calendar year to which the return relates. In addition, reporting entities must also furnish statements annually to each individual who is provided MEC (under Section 6055), and each of the ALE’s full-time employees (under Section 6056). Individual statements are generally due on or before Jan. 31 of the year immediately following the calendar year to which the statements relate.
As noted above, individual statements do not have to be provided under Section 6055 if certain requirements are met.
However, filing with the IRS is still required, and this relief does not apply to Section 6056.

 

Extended Furnishing Deadline

The IRS has again determined that some employers, insurers and other providers of MEC need additional time to gather and analyze the information, and prepare 2020 Forms 1095-B and 1095-C to be furnished to individuals. For 2020, the furnishing deadline was Feb. 1, 2021, since Jan. 31, 2021, is a Sunday. Notice 2020-76 provides an additional 30 days for furnishing the 2020 Form 1095-B and Form 1095-C, extending the due date from Feb. 1, 2021, to March 2, 2021.

Despite the delay, employers and other coverage providers are encouraged to furnish 2020 statements to individuals as soon as they are able. 

Filers are not required to submit any request or other documentation to the IRS to take advantage of the extended furnishing due date provided by Notice 2020-76. Because this extended furnishing deadline applies automatically to all reporting entities, the IRS will not grant additional extensions of time of up to 30 days to furnish Forms 1095-B and 1095-C. As a result, the IRS will not formally respond to any requests that have already been submitted for 30-day extensions of time to furnish statements for 2020.

 

Impact on the Filing Deadline

The IRS has determined that there is no need for additional time for employers, insurers and other providers of MEC to file 2020 forms with the IRS. Therefore, Notice 2020-76 does not extend the due date for filing Forms 1094-B, 1095-B, 1094-C or 1095-C with the IRS for 2020.

This due date remains:

  • March 1, 2021, if filing on paper (since Feb. 28, 2021, is a Sunday); or
  • March 31, 2021, if filing electronically.

Because the due dates are unchanged, potential automatic extensions of time for filing information returns are still available under the normal rules by submitting a Form 8809. The notice also does not affect the rules regarding additional extensions of time to file under certain hardship conditions.

 

Penalty Relief Regarding the Furnishing Requirement Under Section 6055 for 2020

The individual mandate penalty has been reduced to zero, beginning in 2019. As a result, an individual does not need the information on Form 1095-B in order to calculate his or her federal tax liability or file a federal income tax return. However, reporting entities required to furnish Form 1095-B to individuals must continue to expend resources to do so.

Therefore, Notice 2020-76 provides relief from the penalty for failing to furnish a statement to individuals as required under Section 6055 for 2020 in certain cases. Specifically, the IRS will not assess a penalty under Section 6722 against reporting entities for failing to furnish a Form 1095-B to responsible individuals in cases where the following two conditions are met:

  • The reporting entity prominently posts a notice on its website stating that responsible individuals may receive a copy of their 2020 Form 1095-B upon request, accompanied by an email address and a physical address to which a request may be sent, as well as a telephone number that responsible individuals can use to contact the reporting entity with any questions; and
  • The reporting entity furnishes a 2020 Form 1095-B to any responsible individual upon request within 30 days of the date the request is received. The reporting entity may furnish these statements electronically if it meets the requirements for electronic furnishing.

ALEs that offer self-insured health plans are generally required to use Form 1095-C, Part III, to meet the Section 6055 reporting requirements, instead of Form 1095-B. This 2020 Section 6055 furnishing penalty relief does not extend to the requirement to furnish Forms 1095-C to full-time employees. As a result, for full-time employees enrolled in self-insured health plans, penalties will continue to be assessed consistent with prior enforcement policies for any failure by ALEs to furnish Form 1095-C, including Part III, according to the applicable instructions. However, the 2020 Section 6055 furnishing penalty relief does extend to the requirement to furnish the Form 1095-C to any non-full-time employees enrolled in an ALE’s self-insured health plan, subject to the requirements of the 2020 Section 6055 furnishing penalty relief.

The 2020 Section 6055 furnishing penalty relief also does not affect the requirement or the deadline to file the 2020 Forms 1094-B, 1095-B, 1094-C or 1095-C, as applicable, with the IRS.


How the latest stimulus bill impacts student loan benefits

With passage of the COVID-19 stimulus bill in December, Congress granted a five-year extension to a temporary provision of the CARES Act that allows employers to contribute up to $5,250 annually toward each employee's student debt on a tax-free basis.

This tax exemption was set to expire on December 31, 2020. Congress has now extended that deadline through December 31, 2025. The legislation allows employers to help pay down their employees’ student loan debt without employer contributions being taxed, similar to a 401(k) match.

By utilizing this benefit, both employers and employees avoid federal payroll and income taxes on employer payments to principal or interest on a qualified education loan, which is defined as a student loan in the name of the employee and used for their education. Federal, private and refinanced student loans are all eligible for pre-tax employer contributions. This tax exemption, however, does not apply to education loans for an employee’s spouse, children, or other dependents.

Addressing student debt at work has been a burgeoning trend in employee benefits in recent years. Even prior to this tax exemption, the number of employers offering student loan repayment benefits doubled from 4% to 8% of U.S. employers between 2018 and 2019. Providing student loan assistance has rapidly gained traction as an employee benefit because it’s often a win-win for employers and employees.

Some 47 million Americans collectively owe $1.7 trillion in student debt and that figure is not slowing down. The Congressional Budget Office estimates that over $1 trillion dollars in new student loan debt will be added by 2028. With 70% of college students graduating and beginning their careers with an average of $40,000 in debt that will take 22 years to pay off, employers have begun to recognize the social cost and impact such an astronomical level of debt has on recruiting, retention, and employee productivity.

By the age of 30, employees with student debt hold less than half the retirement savings of their peers without student loans. Student loan borrowers have delayed homeownership, getting married and having children because of their debt. Stress over how to repay student loans causes 65% of borrowers to report losing sleep at night and 1 out of 8 divorces are attributable to student debt.

When one takes that into consideration, it should not be surprising that many job seekers are drawn to employers that offer to help pay down their student loans. When young adult job seekers were asked “What percentage of your benefit compensation money would you allocate for student loan debt repayment versus an alternative benefit?” In all cases, respondents chose more money going toward student loan repayment, ahead of all other benefits, including 401(k) match, health insurance, and paid time off.

At Goodly, we work with employers to help them offer student loan repayment as an employee benefit. Across the hundreds of clients we work with, employers typically contribute between $50 to $200 per month, with the median employer contribution being $100 per month toward the employee’s student debt.

Many Goodly clients fund student loan benefits by simply redirecting existing benefits budgets, often from tuition assistance programs. This is a fairly straightforward proposition when one considers that roughly half of employers already offer tuition assistance benefits that allow employees to go back to school. Yet, these programs often see abysmal utilization with less than 10% of eligible workers taking advantage of a tuition benefit on an annual basis.

The most common approach to employer-sponsored student loan repayment is to have employees continue making their regular student loan payments. Employer payments are then made on top of that to the principal of the student loan, similar to a 401(k) match. By taking this approach, we’ve found that the average student loan borrower on Goodly can pay off their student loans 25% to 30% faster than they otherwise would with the help of their employer.

SOURCE: Poulin, G. (20 January 2021) "How the latest stimulus bill impacts student loan benefits" (Web Blog Post). Retrieved from https://www.benefitnews.com/opinion/how-the-latest-stimulus-bill-impacts-student-loan-benefits


6 ways technology changed the workplace in 2020

Without technology, working remotely during a global pandemic wouldn’t have been possible. But it also helped employers overcome unforeseen obstacles created by this new reality.

To help maintain social distancing, 42% of the U.S. workforce has been working from home, according to a study conducted by the Stanford Institute for Economic Policy Research. While working remotely has helped quell the spread of COVID, it’s caused new challenges for the workforce: balancing work while caring for children or the elderly, deteriorating mental health, lack of opportunities to network — the list goes on.

Despite the promising news of vaccines pointing to changes in 2021, remote work is here to stay. Employers including Dropbox and Wikimedia Foundation have all announced options for employees to work from home permanently, and Wells Fargo and Apple have extended remote work until the summer.

 Professional training and coaching:

BetterUp, a mobile-based professional coaching platform, is teaming up with NASA and the Federal Aviation Administration, in its first partnership with government agencies to provide their employees with personalized professional coaching.

In the coming months, the FAA and NASA will roll out BetterUp’s professional coaching to supervisors and executives. At the individual level, employees will gain unlimited access to one-on-one professional coaching, accessible via any computer or smartphone. Employees will have access to a digital library that includes thousands of resources designed to reinforce coaching session topics.

“Our evidence-based coaching approach has been linked to significant behavioral gains in areas such as resilience, strategic planning, stress reduction, and the ability to lead teams,” says Alexi Robichaux, CEO and co-founder of BetterUp. “Our goal with NASA and the FAA is to serve as a tool that will enable employees to better thrive as individuals and inspire others as leaders.”

 Telehealth:

Catapult Health launches new virtual program to improve access to preventive care
As the pandemic has triggered delays in both preventive and elective care, employers are turning to telehealth services to keep their workforce healthy and happy, and prevent the development of chronic disease.

Catapult Health, a provider of onsite and virtual preventive healthcare, has launched a new program called VirtualCheckup, through which employers can offer preventive care to their employees and family members anytime and anywhere.

“Over the past months, people are kicking the can on their chronic conditions,” says David Michel, CEO of Catapult Health. “Individuals that we're seeing now have not been to their doctors in several months. They've been scared to go. So we’re able to reach people where they are in this critical time and offer a solution that's very thorough and very simple for them to do.”

 Recruiting:

Gamifying training, onboarding can help boost engagement for Gen Z
As young workers get more technologically advanced and the workforce continues to embrace remote work, training and onboarding processes are vital for getting employees up to speed. But 38% of HR professionals say that remote onboarding is harder than in-person onboarding, and only 9% say that it is easier, according to a recent survey by the HR Certification Institute and MindEdge Learning.

With remote work here to stay for the foreseeable future, tech will play an increasingly large role, says Matt Fairhurst, CEO of Skedulo, a software and workforce management company.

“It’s about how to come up with and quickly implement really interesting technologies that help encourage the connectedness and engagement of employees,” Fairhurst says. “Not as a method of discipline, but simply as a way to lean into the expectations that remote workforces have — which is an incredible desire for engagement and connectivity across the organization.”

 Virtual mental health care:

With stress, anxiety and burnout on the rise, employers are seeking new ways to support workers struggling with poor mental health during the coronavirus pandemic.

Lyra Health, a mental benefits provider, is adding the Calm app to their benefit offerings to help manage the added stress. Over 1.5 million employees will have access to the popular resiliency training app, as the new partnership expands mental health support to employees who may be resistant to more traditional modes of therapy.

“The urgency has never been greater than it is now to provide holistic mental health services,” says Joe Grasso, clinical director of partnerships at Lyra Health. “It's a way to support people who maybe aren't ready to engage in therapy but want to dip their toe into some kind of wellness support.”

 Workplace safety:

New tool tracks COVID-19 geographical risk to pinpoint when employees can return to work
As new COVID-19 hotspots continue to pop up across the country, employers may be hesitant or unsure of how to proceed with potential reopening plans.

Health Advocate, a provider of health advocacy, navigation, well-being and integrated benefits programs, has launched a return-to-work solution called Return Navigator to help employers understand the critical components of how and when to return.

“For organizations planning the transition back to the workplace, safety and health are top priorities. However, it is challenging to determine the right timing and approach to have employees return,” says Arthur Leibowitz, chief medical officer and founder at Health Advocate. “By combining these valuable tools, employers can make more informed decisions about developing and implementing their return-to-work strategy.”

SOURCE: Webster, K. (23 December 2020) "6 ways technology changed the workplace in 2020" (Web Blog Post). Retrieved from https://www.benefitnews.com/list/6-ways-technology-changed-the-workplace-in-2020


HR checklist: 5 things to-do before the new year

2020 has been… a year. But before HR professionals look hopefully to the future, they need to tie up loose ends to ensure their workforce starts the new year off on the right foot.

“This has been a strange year, and a stressful one for both employees and their companies,” says Tauhidah Shakir, vice president of human resources and chief diversity officer at Paylocity, an Illinois-based HR software company. “Anything you can do to get ahead of things to wrap up this year is going to help alleviate that stress and get everyone off to a good start.”

The pandemic has caused a lot of stress in the workplace. In November alone, 42% of Americans reported experiencing cases of anxiety or depression, according to the Centers for Disease Control and Prevention. As an HR manager, Shakir believes that staying organized, and helping employees through end of year changes will help alleviate stress for everyone. To help other employers cope with these unprecedented times, she created an end of the year to-do list to help other HR professionals stay on track.

 Note last payroll date

“Keep an eye on the payroll process, and be sure to note the first day of the New Year falls on a Friday so it doesn’t take you by surprise,” Shakir says. “You have to make sure people are getting their sick and bonus time. Have it all plotted out so you’re not rushing at the last minute.”

 Open enrollment

“This isn’t like any other open enrollment; HR needs to over communicate what benefits they’re offering, and which ones are going to help their employees the most,” she says. “We don’t know how much things are going to change in the New Year; make sure employees are prepared by making them aware of any mental health, financial wellness and other benefits that can help.”

 Go paperless

“Since many of us are not all working in the same space right now, this is the perfect time to switch the workforce over to a completely paperless documentation process,” Shakir says. “Email employees their end of year documents; it’s going to be a lot less stressful than them waiting for it to come through the mail.”

 Employee feedback

“This year presented a lot of challenges for everyone, and you’re going to want to take any lessons learned into the New Year,” she says. “You’re looking for lessons learned, ways to improve to make benefits more accessible to employees. There’s always room for improvement, so be sure to be open to what employees are telling you.”

 Be flexible

“A lot of employees are fatigued about working from home and feeling like they have no control right now,” Shakir says. “Remember employees have a lot on their plate right now, especially with the winter holidays going on, so be kind and flexible about when they work so they can juggle all their responsibilities.”

SOURCE: Webster, K. (16 December 2020) "HR checklist: 5 things to-do before the new year" (Web Blog Post). Retrieved from https://www.benefitnews.com/list/hr-checklist-5-things-to-do-before-the-new-year


5 tips for a work-from-home holiday

Unfortunately, this holiday season will not offer a respite from the pandemic. Vaccination and a return to normalcy are on the horizon, but they won’t arrive before the end of the year. In fact, the cold temperatures and increase in travel during the holidays are forcing experts to urge caution and predict the worst. Under these circumstances, holiday work gatherings are foolish and even keeping the office open feels unwise. That doesn’t mean, though, you have to shut down the holiday spirit.

You already have the tech in place for a remote holiday experience. You’ve gotten used to Zoom, even if you’re not in love with it. When you know how to lead in a work-from-home environment, emceeing a party is no biggie. Is it as fun as a party in the flesh? Probably not, but it can still be fun all the same. Here are a few tips to ensure you do just that.

Prioritize safety

This tip is a no-brainer if there ever was one. The advice from experts is clear: You should not host an in-person gathering for your holiday party. It’s just that simple. As Thanksgiving showed, some people simply cannot resist getting together with their families during this time of year. While you won’t be able to enforce prudence in your team member’s personal lives, you can surely do so when it comes to company parties. No matter how much you love your annual gathering, no matter how much you’ve been looking forward to it, you just can’t have it as you normally would.

Keep mandatory events brief

At this point, we all know how real Zoom fatigue is. It’s one thing when we have to stay in meetings all day for work purposes. However, making people wait on-screen for hours during optional activities is akin to cruel and unusual punishment. To avoid this fate, front-load important games, events, and announcements on the party schedule. Over time, the party should get more formless, allowing people an easy escape if they don’t want to hang out for too long. In other words, don’t make it like a wedding where everyone needs to wait four hours between the ceremony and the food.

Prioritize interactivity

There are a whole host of ways to bring partygoers together across physical space. From games that work well over Zoom to sending cocktail kits to your team, there’s a method of group interaction that will delight your team members. I would recommend not doing anything that’s too onerous on the team members themselves. For example, it’s better for you to send gifts to the team than to try to organize a virtual Yankee Swap. The latter may be a good idea in theory, but it will run into snags if everyone fails to mail their gifts on time. You’ll find more success if you handle that stuff yourself. Also, don’t forget to tell team members to expect a piece of mail, lest they open it before the party and ruin the surprise.

Consider alternative ways to say thanks

One upshot of not having an in-person party is that you’ll save a ton of money. Consider doing something with this to benefit your team and community. Maybe you want to make a charitable donation on behalf of your firm. Perhaps you’d like to offer some precious extra time off to the folks who’ve given their all during an incredibly difficult year. Whatever route you choose, these gestures will surely make a real difference in people’s lives.

Keep the spirit alive

The holidays, we’re often told, are defined by the spirit of generosity and warmth more than by any event or gift. This year will put that maxim to the test unlike any other. Sure, things look a little differently this year, but we can all adapt, overcome, and still partake in the most wonderful time of year.

SOURCE: Vetter, A. (16 December 2020) "5 tips for a work-from-home holiday" (Web Blog Post). Retrieved from https://www.benefitnews.com/list/5-tips-for-a-work-from-home-holiday


4 benefits of positive recognition to boost employee engagement

As both employers and employees are facing difficult times both in their work-life and home life due to the circumstances that the coronavirus pandemic has brought into the world, it's important that the negativity does not take place of the positivity needed. Positivity is powerful and can play a critical role in the workplace. Read this blog post for four benefits of positive recognition.


With all that’s happening, it’s easy to become overwhelmed with the negativity in the world. Our emotional state is important at work. Positive emotions transform our minds and increase our ability to bounce back from hard times.

The power of positivity should not be overlooked, and recognition plays a critical role in generating these emotions in a modern workplace. Open acknowledgement and expressed appreciation for employees’ contributions can go a long way.

Improve employee retention
The first benefit of positive employee recognition is improving employee retention. In fact, according to industry analyst Josh Bersin, companies that build a recognition-rich culture actually have a 31% lower voluntary turnover rate.

Gallup research on recognition also shows that employees who don’t feel recognized at work are twice as likely to quit within a year. In today’s current environment where many organizations are driving more productivity with fewer employees, leaders need to ensure that they’re not forgetting to focus on employee retention. You’d be hard-pressed to find an organization that isn’t concerned about retaining top talent right now; top performers will find new opportunities even when they’re hesitant to move.

Creating a workplace where people want to stay isn’t just beneficial for employees; it’s also good for the bottom line. Turnover cost can be difficult to compute, but I challenge you to consider the costs of recruiting, onboarding, training, and the lost institutional knowledge that comes with poor retention.

Increase employee engagement
The second benefit that is particularly important right now is increased employee engagement. Our own research showed that 84% of highly engaged employees were recognized the last time they went above and beyond at work compared with only 25% of actively disengaged employees. We also found that while 71% of highly engaged organizations recognize employees for a job well done, only 41% of less-engaged organizations did so.

Positive recognition is powerful and has a clear tie to engagement. Yet, many organizations still do not adequately measure engagement. When was the last time you measured engagement with your own team? How much opportunity is there to improve through recognition?

Boost employee morale
The third benefit of positive recognition is boosted morale. I already mentioned the transformative effect of positivity, but the simple act of thanking people can make a tremendous difference. When employees were asked about their experience at work,70% said that motivation and morale would improve “massively”with managers saying thank you more.

How did you feel last time you were recognized?

Positivity has an important impact on employees, but it also pays literal dividends to companies that have figured out how to encourage it. Research from author Shawn Achor shows that happiness raises sales by 37% and productivity by 31%. Consider ways you can encourage your team to recognize each other more often.

Leverage peer recognition
It turns out that peer recognition massively outperforms top-down recognition. Peer recognition occurs when individuals give and receive recognition from their peers, managers, and direct reports.

Being recognized by colleagues is incredibly powerful for employees, especially when it’s done publicly. Peer recognition is 36% more likely to have a positive impact on financial results than manager-only recognition, according to SHRM. Managers can’t see every positive action that occurs, so think about how to encourage everyone to participate in recognition of great work across the entire organization.

SOURCE: Crawford-Marks, R. (14 September 2020) "4 benefits of positive recognition to boost employee engagement" (Web Blog Post). Retrieved from https://www.employeebenefitadviser.com/list/4-benefits-of-positive-recognition-to-boost-employee-engagement


Three Communication Tips to Raise Productivity

Communication is often the key to success especially within the workplace and during team projects. If communication expectations are laid out and shown to employees, the chance of higher productivity is more common. Read this blog post for helpful tips.


If you're looking for ways to bump productivity, rescue slumping performers or improve teamwork, start with your expectations. These subtle—but very powerful—elements of your leadership toolkit can produce lasting results.

Raising your expectations doesn't require you to adopt a perpetual cheery optimism, but it does require you to make a brutally realistic assessment of current conditions. If productivity is low, cycle time is horrible and/or quality is poor, you need to acknowledge the facts—or you'll never be able to improve performance. And part of that brutal assessment requires looking in the mirror. Perhaps, without realizing it, your underlying beliefs are contributing to the performance situations you see around you.

Three components make up the messages you send: the words you use, the way you say them and your nonverbal cues.

Words

Here are some examples of how to frame your expectations for performance improvement in three different situations.

  • If productivity is down, you might say: "Well, as we look at productivity, we can see that it's 2 percent below where it was last year. I know we can get back to where we were—and eventually beyond—because we have the horsepower right in this room to do it." In selecting these words, you've acknowledged where performance is and expressed confidence about improvement.
  • If you're making progress in an area—but more progress is required—the message might be: "While we're making progress on quality, it's still not where it needs to be. I know we can get to where we need to be by continuing our Six Sigma efforts. Let's look and see where we need to put our resources next."
  • If performance is good and you want to boost it more, the message should be: "Cycle time is good, never been better. Let's look at how to cut it even further. I know we can do it if we work together to figure out how."

In each example, your words describe the present situation in simple and direct terms and also express confidence in moving to further improvement.

Verbal Intonations

The tone of your voice is the second element of your message. Everyone has experienced situations where the words sent one message and the tone of voice sent another. When there's a conflict, most people believe what is conveyed by the tone of your voice. So, make sure that your tone matches the positive message of your words. Not only should you avoid the obvious mismatch, but also the unintentional mismatch—those occasional situations where your words say one thing and your tone of voice says another.

Nonverbal Cues

The bulk of the meaning lies here. You can say the words, and your tone of voice can match the words. But if you're looking around, tapping your fingers, shaking your head "no" or doing any one of the hundreds of other seemingly little things that say, "I don't believe in you," you're not going to get the performance you want. Here are five categories to check yourself against:

1. Body position. If your arms are crossed, your legs are crossed away from the person you're communicating with or you're giving the "cold shoulder," then you're sending negative messages. On the other hand, if your body position is open—you're facing the person rather than looking away—you communicate honesty, warmth and openness. If your posture is erect rather than slumping, you communicate positive beliefs. And if you're leaning slightly forward, you demonstrate interest in the other individual.

2. Hand gestures. Avoid tapping your fingers ("I'm impatient"), hiding your mouth ("I'm hiding something"), wagging your finger (the equivalent of poking someone with your finger) and closed or clenched hands ("I'm upset"). These gestures all conflict with an "I believe in you" message. Instead, use open hands with palms up ("I'm being honest with nothing to hide") or touching your hands to your chest ("I believe in what I'm saying"). Both of these emphasize a positive message.

3. Head. If your head is shaking back and forth or tilted off to one side, you're sending a message of disbelief. On the other hand, if your head is facing directly toward someone and you're nodding up and down, you're delivering a nonverbal message of belief and confidence.

4. Facial expressions. Smile, and keep your mouth relaxed. Show alertness in your face and act like you're ready to listen. Do these regularly and you'll have created an open communication pattern with someone who will believe in your sincerity. On the other hand, if you're tight-lipped, are clenching your jaw muscles and have only a grim smile, no smile at all or a frown, you'll send a message that says: "No way can you possibly succeed at this project."

5. Eyes. Maintaining good eye contact is one of the most important nonverbal signals you can send. It conveys the message, "I'm interested in you and when I say I believe in you, I really do." Making sure that your eyes are open wide is also helpful. Squinting can deter the recipient. Worse yet is looking around, paying attention to other things and not paying attention to the person or topic at hand.

Communicate high expectations well enough and you may even have to step aside to avoid getting run over by a team of committed players whose performance is accelerating.

SOURCE: Connellan, T. (29 September 2020) "Three Communication Tips to Raise Productivity" (Web Blog Post). Retrieved from https://www.shrm.org/resourcesandtools/hr-topics/people-managers/pages/three-communication-tips-to-raise-productivity.aspx


5 ways HR can help millennials be smarter than their parents about retirement

Getting younger employees to save for retirement is right up there with getting a finicky child to eat their vegetables. Sure, it's good for them, but it's not always what they want.

Participation rates and average deferral rates in voluntary enrollment plans for workers younger than 35 are well below those of other age groups, indicating that HR teams may need to take extra steps to reach this segment of their employee base, according to data from Vanguard, a leading 401(k) provider.

HR professionals are uniquely positioned to best assist younger workers. The best tack for HR experts to take with millennials in regard to retirement saving is to point out some of the mistakes their parents' generation has made in that area.

Help employees understand the destination
When it comes to saving for retirement, a lot of older workers are clearly lost. Younger workers have an opportunity to do a better job of staying on track.

Vanguard’s data show the average 401(k) participant within 10 years of retirement age (i.e., between ages 55 and 64) has a plan balance of just $69,097.

That may not provide much help over a retirement of 10 or 20 years.

Caution young staff members that one reason older workers are so badly behind in retirement saving is that they haven't checked first to see where they're going.

A MoneyRates retirement plan survey finds that 71% of workers within 20 years of retirement age still have not done a calculation of how well their savings will hold up over their retirement years.

Encourage your workforce to determine what enough savings is. Inform your staff that it only takes a few minutes to use a retirement calculator to see how much to put aside to meet savings goals. That way, your employees will know where their retirement plan is heading.

Educate employees on how to get debt under control
Saving for retirement is undermined when employees are also building up debt at the same time.

Stress that debt costs more than retirement investments are likely to earn, a dollar in debt can more than counteract the benefit of a dollar in savings.

According to the Federal Reserve's Survey of Consumer Finances, the typical household still has $69,000 in debt by the time the head of that household is within 10 years of retirement.

Notice that this figure almost exactly matches the previously-mentioned amount that the average 401(k) participant in that age group has. In other words, debt can effectively wipe out a person's 401(k) savings.

So, your team’s first step toward educating workers about building a more secure retirement should be to do something many in their parents' generation failed to do: get debt under control.

Teach employees how to spread savings to make the burden lighter
Retirement saving is a big job, but younger workers have something very important on their side: time. Emphasize that spreading retirement savings out over 25 to 40 years makes the job much easier.

It gets tougher if young workers do what many of their parents' generation have done--wait and then try to catch up in the last ten years or so until retirement.

The golden rule: Don't leave free money on the table
When employers provide a 401(k) match, all staff should understand there's a direct financial incentive to start saving now. Every time employees put money into their 401(k) plan, the employer kicks in some on their behalf.

If employees don't contribute money into the plan, they don't get this money from the employer. There's no going back in future years and reclaiming that extra money the employer would have put in on the worker’s behalf.

The only way not to miss out on this free money is to contribute each and every year— and to contribute enough to get the maximum employer match available.

Show employees the benefits of saving
A dollar saved today can equal $10 at retirement age.

Saving money is hard work, but HR professionals can show their employees that it gets easier when they let their investments do the work for them.

The investment returns earned become much more powerful when compounded over a long period of time. Compounding means earning a return not just on the original money invested, but also on the returns earned in other years.

Younger workers must recognize that a dollar invested today could be worth much more than a dollar invested toward the end of their career.

There are many people of older generations who would be a lot better off today if they absorbed each of these five lessons when they were younger.

SOURCE: Barrington, R. (14 October 2020) "5 ways HR can help millennials be smarter than their parents about retirement" (Web Blog Post). Retrieved from https://www.employeebenefitadviser.com/opinion/ways-hr-can-help-millennials-be-smarter-than-their-parents-about-retirement


Employees work an extra 26 hours a month when remote

 


Only months ago, a growing number of businesses were experimenting with or adopting a four-day workweek, but remote work policies imposed by the coronavirus pandemic have pivoted this trend in the opposite direction.

Full-time employees are working an extra 26 hours a month when remote, adding nearly an extra day of work to the week, according to a new report from Owl Labs, a video conferencing technology company.

The increase in work hours may be due to employees needing more time to adapt to new changes businesses have made in response to the pandemic, says Frank Weishaupt, CEO of Owl Labs. Having the workplace always available — as employees work right in their house — is also blurring the lines between work and home, possibly adding to their hours worked.

Employees may also be filling in the time they spent commuting with more time at work. The report found employees were spending an average of 40 minutes daily on their commute.

“Everybody's situation is different, but I was commuting roughly two to three hours per day, which is 10-15 extra hours per week,” Weishaupt says. “Now I have a lot more flexibility in terms of when my workday starts and ends, and I don't have to give that time to the commute — but can actually give it to work.”

But along with increased work hours are increased levels of stress. Almost 1 in 2 employees are worried that staying remote could negatively affect their career, according to the findings. During the coronavirus pandemic, 91% percent of employees say they’ve experienced moderate to extreme stress while working from home, according to a survey by Ginger, a mental health benefits platform.

Despite these challenges, the flexibility of working remotely has helped many employees achieve better work-life balance. Overall, the report found that workers were benefiting from the perks of remote work, and named avoiding their commutes and having more time with their families as top reasons to continue working remotely.

“When you look at the overwhelming data, it shows that employees are much happier, which is a bigger indication of what this change has meant for people,” Weishaupt says. “Yes, people are working significantly more, but they're not having to sacrifice their personal lives to work. People are happier and feel just as productive, if not more [when working remotely].”

SOURCE: Nedlund, E. (21 October 2020) "Employees work an extra 26 hours a month when remote" (Web Blog Post). Retrieved from https://www.benefitnews.com/news/employees-work-an-extra-26-hours-a-month-when-remote


A step-by-step guide to helping your employees combat financial stress

Finances are often one of those lingering thoughts that can be detrimental to an employee's productivity, during these times of the coronavirus pandemic, those thoughts may not just be lingering anymore. Read this blog post to learn more.


With the virus dominating everyone’s thinking and many employers concentrating on keeping their businesses afloat, it may be hard to focus on your employees’ financial future. Even before COVID-19, employers saw the link between financial stress and decreased workforce productivity. With COVID-19 creating business pressures, it’s imperative that your workforce meet the needs of your customers, and they can’t do that effectively if they are worried about their own or their family’s finances.

Millions of Americans are struggling due to the economic backslide stemming from the pandemic. The first months of the COVID-19 pandemic largely wiped out three years of financial gains in the United States, with more than half of Americans reporting their financial health has been compromised, according to Prudential’s 2020 Financial Wellness Census. While some are focused on making it day-to-day, the economy has also shaken others who considered their finances stable for the future. Although your employees still have a job, you must not lose sight of the fact that their spouse or partner may have lost their job or been furloughed, reducing their incomes by half, which can set any family back.

No matter how bleak things may look right now, you can still help your employees plot a path back to being financially well. Here are four steps to help restore your employees’ financial confidence.

1. Help them build a strong foundation

Employees must take stock of the money that is still coming in and create a budget. Many employers offer budgeting tools as part of their financial wellness program, so consider ramping up your email communications to remind employees of these tools, which can help them categorize expenses as essential or discretionary. If you offer any form of debt management support you can remind them to take advantage of that too. You may also want to provide them with education on how to create a will, something many people overlook. Finally, encourage employees to designate beneficiaries on insurance and financial accounts.

2. Use open enrollment season to protect them against income and expense shocks

Open enrollment season, which is underway for many companies right now, is the perfect time to reinforce non-health workplace benefits, like life insurance, long-term disability insurance, hospital indemnity insurance, critical illness insurance and accident insurance. Emphasize your paid family leave policy too, if you have one. This is especially timely right now for workers who are without childcare options, but must return to the office after months of remote working.

3. Assist them in planning for their future and retirement

Some employers who have implemented financial wellness programs have partnered with providers to create financial wellness assessments so they can understand how their employees are faring. If you have this tool and notice that your employees have the basics down, they should be comfortable expanding their financial safety net. Consider encouraging them to increase their retirement contributions and use email campaigns to empower them to take advantage of the company match, if you offer one. If your employees have access to Health Savings Accounts, Flexible Spending accounts and Dependent Care Accounts to help manage healthcare and childcare expenses, be sure to emphasize their importance in your open enrollment email communication campaigns and virtual open enrollment education sessions.

4. Educate your employees on how to secure their financial future

Once employees have rebuilt their financial base, it’s time to help them strengthen the protections they’ve created. Consider hosting virtual webinars to educate them on how to protect themselves from market volatility by maximizing the options in their retirement savings plans. Common options include target date funds or other asset allocation tools as well as in-plan retirement income options and other retirement draw-down strategies. If your financial wellness program includes financial advising or counselling, encourage them to leverage an advisor or financial planner to minimize their non-mortgage debts and calibrate their life insurance coverage to create lifetime income for their surviving dependents.

SOURCE: Schmitt, S. (02 November 2020) " A step-by-step guide to helping your employees combat financial stress" (Web Blog Post). Retrieved from https://www.employeebenefitadviser.com/list/a-step-by-step-guide-to-helping-your-employees-combat-financial-stress