Avoid these 12 Common Open Enrollment Mistakes
Open enrollment season is right around the corner. Check out this great column by Alan Goforth from Benefits Pro and find out the top mistakes employers and HR have made during open enrollment and what you can do to avoid them.
Every employer or human resources professional has made mistakes during open enrollment.
Trying to accommodate the diverse needs of the workforce in a short timeframe against the backdrop of increasing options and often bewildering regulations, can be a challenge even in the best-run companies.
Avoiding mistakes is impossible, but learning from them is not. Although the list may be limitless, here are a dozen of the most common pratfalls during open enrollmentand how to avoid tripping over them.
1. Failing to communicate
"What we've got here… is failure to communicate." – Cool Hand Luke
This mistake likely has topped the list since open enrollment first came into existence, and it will probably continue to do so. That's because enrollment is a complex procedure, and few challenges are greater that making sure employers, employees, brokers and carriers are on the same page.
Employers have both a stick and a carrot to encourage them to communicate as well as possible. The stick is the Affordable Care Act, which requires all employers subject to the Fair Labor Standards Act to communicate with employees about their health-care coverage, regardless of whether they offer benefits.
As a carrot, an Aflac study found that 80 percent of employees agree that a well-communicated benefits package would make them less likely to leave their jobs
2. Neglecting technology
The integration of new technology is arguably the most significant innovation in the enrollment process in recent years.
This is especially important as younger people enter the workforce. Millennials repeatedly express a preference for receiving and analyzing benefits information by computer, phone or other electronic devices.
The challenge is to make the use of technology as seamless as possible, both for employees who are tech-savvy and for those who are not.
Carriers and brokers are making this an emphasis, and employers should lean on them for practical advice.
See the original article Here.
3. Over-reliance on technology
At the other end of the spectrum is the temptation to rely on technology to do things it never was meant to do.
"Technology is so prevalent in the enrollment space today, but watch out for relying on technology as the one thing that will make or break enrollment," says Kathy O'Brien, vice president of voluntary benefits and nation client group services for Unum in Chattanooga, Tennessee. "Technology is great for capturing data, but it won't solve every problem and doesn't change the importance of the other work you need to do."
4. Succumbing to inertia
It can be frustrating to invest substantial time and effort into employee benefit education, only to have most of the staff do nothing.
Yet that is what happens most of the time. Just 36 percent of workers make any changes from the previous enrollment, and 53 percent spend less than one hour making their selections, according to a LIMRA study.
One reason may be that employees don’t feel assured they are making the right decisions.
Only 10 percent felt confident in their enrollment choices when they were done, according to a VSP Vision Care study. One good strategy for overcoming inertia is to attach dollar values to their choices and show where their existing selections may be leaving money on the table.
5. Cutting too many corners
One of the most difficult financial decisions employers make each year is deciding how much money to allocate to employee benefits.
Spending too much goes straight to the bottom line and could result in having to lay off the very employees they are trying to help. Spending too little, however, can hurt employee retention and recruiting.
Voluntary benefits offer a win-win solution. Employees, who pick up the costs, have more options to tailor a program that meets their own needs.
In a recent study of small businesses, 85 percent of workers consider voluntary benefits to be part of a comprehensive benefits package, and 62 percent see a need for voluntary benefits.
6. Not taking a holistic approach
"Holistic" is not just a description of an employee wellness program; it also describes how employers should think about employee benefit packages.
The bread-and-butter benefits of life and health insurance now may include such voluntary options as dental, vision and critical illness. Employers and workers alike need to understand how all of the benefits mesh for each individual.
Businesses also need to think broadly about their approach to enrollment
"Overall, we take a holistic approach to the customer’s enrollment program, from benefits communication to personalized benefits education and counseling, as well as ongoing, dedicated service," says Heather Lozynski, assistant vice president of premier client management for Colonial Life in Columbia, South Carolina. "This allows the employer to then focus on other aspects of their benefits process."
7. Unbalanced benefits mix
Employee benefits have evolved from plain vanilla to 31 (or more) flavors.
As the job market rebounds and competition for talented employees increases, workers will demand more from their employers.
Benefits that were once considered add-ons are now considered mandatory.
Round out the benefits package with an appealing mix of standard features and voluntary options with the objective of attracting, retaining and protecting top-tier employees.
8. Incomplete documentation
Employee satisfaction is a worthy objective — and so is keeping government regulators happy.
The Affordable Care Act requires employers who self-fund employee health care to report information about minimum essential coverage to the IRS, at the risk of penalties.
Even if a company is not required by law to offer compliant coverage to part-time employees, it still is responsible for keeping detailed records of their employment status and hours worked.
As the old saying goes, the job is not over until the paperwork is done.
9. Forgetting the family
The Affordable Care Act has affected the options available to employers, workers and their families.
Many businesses are dropping spousal health insurance coverage or adding surcharges for spouses who have access to employer-provided insurance at their own jobs.
Also, adult children can now remain on their parents' health policies until they are 26.
Clearly communicate company policies regarding family coverage, and try to include affected family members in informational meetings.
Get to know more about employees' families — it will pay dividends long after open enrollment.
10. Limiting enrollment options
Carriers make no secret about their emphasis on electronic benefits education and enrollment.
All things considered, it is simpler and less prone to copying and data-entry errors.
It would be a mistake, however, to believe that the high-tech option is the first choice of every employee.
Be sure to offer the options of old-fashioned paper documents, phone registration and face-to-face meetings. One good compromise is an on-site enrollment kiosk where a real person provides electronic enrollment assistance.
11. Letting benefits go unused
A benefit is beneficial only if the employee uses it. Too many employees will sign up for benefits this fall, forget about them and miss out on the advantages they offer.
Periodically remind employees to review and evaluate their available benefits throughout the year so they can take advantage of ones that work and drop those that do not.
In addition to health and wellness benefits, also make sure they are taking advantage of accrued vacation and personal days.
Besides maximizing the return on their benefit investment, it will periodically remind them that the employer is looking out for their best interests.
12. Prematurely closing the 'OODA' loop
Col. John Boyd of the U.S. Air Force was an ace fighter pilot. He summarized his success with the acronym OODA: Observe, Orient, Decide and Act. Many successful businesses are adopting his approach.
After the stress of open enrollment, it's tempting to breathe a sigh of relief and focus on something else until next fall.
However, the close of enrollment is a critical time to observe by soliciting feedback from employees, brokers and carriers.
What worked this year, and what didn't? What types of communications were most effective? And how can the process be improves in 2017?
"Make sure you know what is working and what is not," said Linda Garcia, vice president for human resources at Rooms to Go, a furniture retailer based just outside Tampa. "We are doing a communications survey right now to find out the best way to reach each of our 7,500 employees. We also conduct quarterly benefits surveys and ask for their actual comments instead of just checking a box."
Source:
Goforth A. (2017 Aug 22). Avoid these 12 common open enrollment mistakes [Web blog post]. Retrieved from address https://www.benefitspro.com/2017/08/22/avoid-these-12-common-open-enrollment-mistakes?ref=hp-in-depth&page_all=1
6 employee benefits trends in 2017
2018 is almost upon us. More employers are beginning to start their search for new talent next year. If you are in the process of hiring check out this great article put together by Marlene Y. Satter from Benefits Pro and find out the top employee benefit trends for attracting new talent in 2017.
Employers looking to attract the best new employees need to look closely at their benefits offerings.
That’s according to a CBS report that highlights the six trends in benefits that are of the most interest to prospective employees. With millennials having outpaced GenXers as the largest demographic in the workplace, the report says, “it has become abundantly clear over the course of the last half decade that millennials have very different career priorities than their predecessors.”
With that in mind, here are six types of benefits employers might want to consider, if they’re not already on offer.
Flex hours are high on the list for millennials, who regard life/work balance as very important. In fact, according to a PwC study, it’s more important to them than financial compensation. Flexible schedules provide a way for employers to give that balance to employees, allowing them to work hours other than 9-to-5, or from home part of the week. As a result, the report says, employees will have better job satisfaction and be more likely to stay.
Workplace wellness programs are another way to provide a perk that pays off for both employer and employee — and not necessarily at a high cost, the report says. Not only do such programs foster a strong sense of team unity that will help drive job satisfaction and productivity, they also cut health care costs.
Continuing education not only gives employees a leg up, but also provides employers with better-trained staff who are able to cope with modern challenges and less likely to jump ship in search of a more congenial workplace. While the report concedes that most small and midsize businesses don’t have the budget to provide postgrad tuition to employees, that doesn’t mean that companies can’t focus on such investments in language and software certification classes.
Digital health care solutions enable masters of the cyber world in the workforce to reach out to health practitioners via mobile devices and computers, resulting in faster and more personalized treatment. In addition, the report says, “digital health programs are also incredibly cost effective and are estimated to save billions in medical costs over the next four years.”
Fringe benefits and perks — even if not on the scale of big-budget Silicon Valley companies — are another way to woo millennial employees. Public transportation passes, reimbursing employees for yoga classes and massage sessions and providing free lunches or snacks, can give recruiting an edge over companies that do nothing along these lines, the report points out.
Last but not least, there’s a bigger budget of vacation days. Employers may think that’s too expensive, but employee burnout is responsible for 50 percent of employee churn— and the cost of replacing even an entry-level employee can cost a company up to 50 percent of his or her annual salary. The money spent on extra vacation to avoid burnout could be more than offset by the losses of not doing so. Plus, the knowledge that well-rested employees are more productive will also help to counter the down time that might be caused by those additional days off.
See the original article Here.
Source:
Satter M. (2017 September 5 ). 6 employee benefits trends in 2017 [Web blog post]. Retrieved from address https://www.benefitspro.com/2017/09/05/6-employee-benefits-trends-in-2017?page=2&page_all=1
Why Employee Engagement Matters – and 4 Ways to Build It Up
An engaged employee is a productive employee. Employee engagement is a very important piece of a company's operations. They are some of the best assets a company can have and without engaged employees, your company's operations could be negatively impacted. Take a look at this great article by Joe Wedgewood from The Happiness Index and check out some of the helpful tips on how you can boost engagement across your organization.
Organizations with high employee engagement levels outperform their low engagement counterparts in total shareholder returns and higher annual net income.” — Kenexa.
Your people are undoubtedly your greatest asset. You may have the best product in the world, but if you can’t keep them engaged and motivated — then it counts for very little.
By making efforts to keep your people engaged, you will maximize your human capital investment and witness your efforts being repaid exponentially.
The benefits of an engaged workforce
Increase in profitability:
“Increasing employee engagement investments by 10% can increase profits by $2,400 per employee, per year.” — Workplace Research Foundation.
There is a wealth of research to suggest that companies that focus on employee engagement will have an emotionally invested and committed workforce. This tends to result in higher profitability rates and shareholder returns. The more engaged your employees are the more efficient and productive they become. This will help lower operating costs and increase profit margins.
An engaged workforce will be more committed and driven to help your business succeed. By focusing on engagement and investing in your people’s future, you will create a workforce that will generate more income for your business.
Improved retention and recruitment rates:
“Replacing employees who leave can cost up to 150% of the departing employee’s salary. Highly engaged organizations have the potential to reduce staff turnover by 87%; the disengaged are four times more likely to leave the organization than the average employee.” — Corporate Leadership Council
Retaining good employees is vital for organizational success. Engaged employees are much less likely to leave, as they will be committed to their work and invested in the success of the company. They will have an increased chance of attracting more qualified people.
Ultimately the more engaged your people are, the higher their productivity and workplace satisfaction will be. This will significantly reduce costs around absences, recruitment, training and time lost for interviews and onboarding.
Boost in workplace happiness:
“Happy employees are 12%t more productive than the norm, and 22% more productive than their unhappy peers. Creating a pleasant workplace full of happy people contributes directly to the bottom line.” – Inc.
Engaged employees are happy employees, and happy employees are productive employees. A clear focus on workplace happiness, will help you to unlock everyone’s true potential. On top of this, an engaged and happy workforce can also become loyal advocates for your company. This is evidenced by the Corporate Leadership Council, “67% of engaged employees were happy to advocate their organizations compared to only 3% of the disengaged.”
Higher levels of productivity:
“Employees with the highest levels of commitment perform 20% better than employees with lower levels of commitment.” — The Society for Human Resource Management (SHRM).
Often your most engaged people will be the most dedicated and productive, which will give your bottom line a positive boost. Employees who are engaged with their role and align with the culture are more productive as they are looking beyond personal benefits. Put simply, they will work with the overall success of the organization in mind and performance will increase.
More innovation:
“Employee engagement plays a central role in translating additional job resources into innovative work behaviour.” — J.J. Hakanen.
Employee engagement and innovation are closely linked. Disengaged employees will not have the desire to work innovatively and think of new ways to improve your business; whereas an engaged workforce will perform at a higher level, due to increased levels of satisfaction and interest in their role. This often breeds creativity and innovation.
If your people are highly engaged they will be emotionally invested in your business. This can result in them making efforts to share ideas and innovations with you that can lead to the creation of new services and products — thus improving employee profitability.
Strategies to increase employee engagement
Communicate regularly:
Every member of your team will have valuable insights, feedback and suggestions. Many will have concerns and frustrations too. Failure to effectively listen and respond to everyone will lower their engagement and negatively affect the company culture.
Create open lines of communication and ensure everyone knows how to contact you. This will create a platform for your people to share ideas, innovations and concerns with you. It will also bridge gaps between senior management and the rest of the team.
An effective way to communicate and respond to everyone in real-time is by introducing pulse surveys — which will allow you to gather instant intelligence on your people to help you understand the sentiment of your organization. You can use this feedback to create relevant action plans to boost engagement and make smarter business decisions.
Take the time to respond and share action plans with everyone. This will ensure your people know that their feedback is being heard and can really make a difference.
Recognize achievements:
“The engagement level of employees who receive recognition is almost three times higher than the engagement level of those who do not.” — IBM Smarter Workforce Institute.
If your people feel undervalued or unappreciated then their performance and profitability will decrease. According to a survey conducted by technology company Badgeville, only 31% of employees are most motivated by monetary awards. The remaining 69% of employees are motivated by job satisfaction, recognition and learning opportunities.
Make efforts to celebrate good work and recognize everyone’s input. Take the time to personally congratulate people and honor their achievements and hard work. You will likely be rewarded with an engaged and energized workforce, that will make efforts to impress you and have their efforts recognized.
Provide opportunities for growth:
Career development is key for employee engagement. If your people feel like their careers are stagnating, or their hard work and emotional investment aren’t being reciprocated — then you can be certain that engagement will drop.
By meeting with your people regularly, discussing agreed targets and time frames, and clearly highlighting how they fit into the organizations wider plans, you can build a “road map” for their future. This will show that their efforts and hard work aren’t going unnoticed.
Improve company culture:
“Customers will never love a company until the employees love it first.” — Simon Sinek.
Building a culture that reflects your brand and creates a fun and productive working environment is one of the most effective ways to keep your employees engaged. It’ll also boost retention and help recruitment efforts. If your culture motivates everyone to work hard, help each other, become brand ambassadors, and even keep the place clean — then you have won the battle.
An engaged and committed workforce is a huge contributor to any organization’s bottom line. The rightculture will be a catalyst to help you achieve this.
Here’s how you can improve the company culture within your organization:
- Empower your people: Empowered employees will take ownership of their responsibilities, solve problems and do whatever it takes to help your company succeed. This will drive your company culture forward. Demonstrate you have faith in your people and trust them to fulfill their duties to their best of their abilities. This will ensure they feel valued, which can lead to empowerment.
- Manage and communicate expectations: Your people may struggle to understand your cultural vision. By setting clear and regular expectations and communicating your vision via posters, emails, discussions and leading by example, you will prevent confusion and limit deviation from your desired vision.
- Be consistent: To sustain a consistent culture, you must show uniformity with your actions and communications. Make efforts to have consistent expectations and standards for all your workers, and communicate everything in the same way.
By focusing on employee engagement and investing in your people, they will repay your efforts with an increase in performance, productivity and — ultimately — profit.
See the original article Here.
Source:
Wedgewood J. (2017 June 8). Why employee engagement matters - and 4 ways to build it up [Web blog post]. Retrieved from address https://www.hrmorning.com/employee-engagement-ways-to-build-it-up/
Preparing for 2018 Open Enrollment
As open enrollment season nears, make sure you are staying compliant and up-to-date with everything that is happening in ACA. Here are some great tips by Carl C. Lammers from Benefit News on what you need to know to prepare yourself for open enrollment this upcoming year.
Open enrollment for employer-sponsored health and welfare benefits comes every year; usually with little fanfare as employers generally have a system in place to seamlessly handle enrollments.
This changed with the passage of the Affordable Care Act in 2010, but now seven years later, employers again mostly have open enrollment standardized. This year brings a new challenge – the Summary of Benefits and Coverage document that was created by the ACA has undergone its first major restructuring since 2012 when employers were first required to provide the SBC.
The new SBC template must be used for open enrollments that occur on or after April 1, 2017. For calendar year plans, the upcoming 2018 open enrollment is the first open enrollment where the new SBC templates must be used.
If you need a quick refresher, the SBC summarizes group health plan coverage for employees, describing many important plan features, such as deductibles, co-pays, co-insurance, and services covered, so that employees can better understand and make more informed choices about the available coverage options.
SBCs have a required uniform format and must contain certain information and examples, so that employees can compare an employer’s coverage options and options from more than one employer.
The uniform standard definitions of medical and health coverage terms and the required SBC template are distributed by the IRS, DOL, and HHS.
While the insurance carrier or third party administrator normally provides the SBC to an employer for distribution with open enrollment materials, employers are ultimately responsible for the SBC’s accuracy and distribution and for the recently increased penalties – of $1,087 per failure – for failure to distribute the SBC.
Employers should review the SBC’s provided for the upcoming open enrollment to be sure they have changed to reflect the new rules. Employers should also distribute the Section 1557 nondiscrimination notice with the SBC to avoid potential penalties.
The new finalized guidance on SBCs was issued by the Departments in April of 2016. The guidance states that while all prior formatting must still generally be complied with; SBCs can now have certain language and formatting alterations, such as differing font styles and margins in order to maintain the four page requirement. Definitions were also added to the Uniform Glossary, and the Departments state that SBCs may hyperlink the terms to a micro-site that HHS will maintain.
The required content of the SBC has also changed, with some of the most significant changes being:
A description of what an SBC is and where consumers can find more information, located at the beginning of the SBC.
A description of how family members must meet their own individual deductibles before the overall family deductible is met, and what services are covered.
- Changing of the term "person" to "individual."
- A statement that copays may not be included in out-of-pocket limits.
- The removal of the definitions of copayments and coinsurance.
- Change of the "Limitations & Exceptions" column to "Limitations, Exceptions, & Other Important Information" which must now include:
- When the plan does not cover a certain service category, or a substantial portion of a service category.
- When cost sharing for covered in-network services does not factor into the out-of-pocket limit.
- Visit and/or dollar limits.
- When services require preauthorization.
- Note: cross-referencing is allowed if including all information in this section would cause the SBC to exceed four pages.
- New language about minimum essential coverage, minimum value, and language access services.
- The addition of a third Coverage Example about costs for a fracture, and slightly altered formatting to the Coverage Examples section.
- A statement regarding whether abortions are covered by the plan.
One thing that is not part of the new SBC guidance is also important for employers: SBCs are likely considered "significant communications" for purposes of the nondiscrimination rules found in Section 1557 of the ACA, and the notice required by Section 1557 should be included with the SBC.
The Section 1557 notice must be included with all “significant communications” involving the medical plan. It is not clear whether the Departments have considered the addition of the Section 1557 language and its impact on the four page SBC limit.
We suggest including the 1557 notice with the new SBCs, but not as part of the new SBCs, in order to maintain the four-page length. Be sure to review any draft SBCs prepared by your insurer or TPA before distribution to ensure they meet the new formatting requirements.
See the original article Here.
Source:
Lammers C. (2017 July 31). Preparing for 2018 open enrollment [Web blog post]. Retrieved from address https://www.benefitnews.com/opinion/preparing-for-2018-open-enrollment
Benefits Technology: What do Employers Want?
Do you know which technolgy will be the most benefical for your employee benefits program? Take a look at this article by Kimberly Landry from Benefits Pro on what employers should be looking for when searching for the right technology for the benefits program.
It’s no secret that we are in the midst of a revolution in how employers manage their insurance benefits. Enrolling and administering benefits was once a manual process involving plenty of paperwork, but much of this work has now shifted to electronic benefits platforms. A recent LIMRA survey, Convenient and Connected: How Are Employers Using Technology Today?, found that 59 percent of employers are now using a technology platform for insurance benefit enrollment, administration, or both. In addition, more than 1 in 3 firms that do not use technology are currently looking for a platform.
Brokers can provide value to their clients by helping them find a technology system that meets their needs. In fact, over one quarter of employers say their broker should have primary responsibility for researching and evaluating possible technology solutions. However, to do this successfully, it is necessary to understand what problems employers are trying to solve with technology.
The advantages of benefits technology tend to fall into two categories: improving the experience for HR/benefits staff and improving the experience for employees. While employers see the value of both aspects, it is clear that the desire for technology is driven more by HR needs such as reducing costs, improving management of benefits data, and reducing the time and resources needed to administer benefits, rather than employee needs (Figure X). In seeking technology, employers are, first and foremost, trying to make their own lives easier.
This provides insight into some of the key features employers are seeking in technology, many of which revolve around greater convenience in managing benefits. For example, 80 percent of employers say it is important for a technology platform to be accessible all year so they can use it for ongoing administration and updates, rather than a “one-and-done” enrollment system. Ongoing access is one of the top features employers look for in a platform, with sizable portions also specifying that they want a system that can enroll new hires and support ongoing life event and coverage changes.
I would love to find a product … that would allow us to reduce the amount of time that we spend during the enrollment process and also during the course of a year, adding employees or terminating employees.
—Employer with 65 employees (Voice of the Employer,LIMRA, 2016)
Similarly, 77 percent of employers want a technology system that can manage all of their benefits on the same platform, regardless of which carriers are providing the products. Consolidating benefits on one platform helps employers save time and allows them to quickly get a complete view of their overall benefits package in one place. In fact, employers that currently manage all of their benefits on one platform are more satisfied with their technology than those that don’t have this capability. Moreover, roughly 1 in 6 employers say the ability to handle all benefits in one place would motivate them to switch technology platforms.
Employers also want the convenience of a platform that integrates smoothly with other technology systems, including carrier, payroll, and HRIS systems. When it comes to carrier systems, employers want to feel confident that no errors are occurring in the data transfer and don’t want to spend a lot of time checking for mistakes.
Our HR benefits administrator has spent an exorbitant amount of time trying to, literally person by person, dependent by dependent, go through each little piece and figure out why somebody's kid is getting dropped…So I think I'd like to see those communications [work] a little bit better.
—Employer with 320 employees
Employers also want technology to integrate with their payroll and other HRIS systems so they do not have to make changes in multiple systems, which is perceived as time-consuming and inefficient.
And those two systems...they don't communicate with each other... Without that communication, it's almost like double work because if there's an address change or anything like that, you have to go to one system, then go to another, and that just seems broken to me.
—Employer with 32 employees
While employers are primarily seeking convenience for their own HR staff, it is important to note that they would like this value to extend to their employees as well. Overall, 85 percent of employers think it’s important that an enrollment platform be easy and intuitive for their employees to use. In fact, user-friendliness is often one of the first priorities that comes to mind when employers describe their ideal platform.
I want to make sure it's easy, as simple as possible, as fast as possible, and I don't want it to be a burden every year.
—Employer with 30,000 employees
When it comes to selecting benefits technology, it is clear that convenience is key. By guiding employers to technology solutions that will make it quicker and easier to administer benefits, brokers can improve the experience for everyone involved and help the industry move into the future.
See the original article Here.
Source:
Landry K. (2017 July 21). Benefits technology: what do employers want? [Web blog post]. Retrieved from address https://www.benefitspro.com/2017/07/21/benefits-technology-what-do-employers-want?kw=Benefits+technology%3A+What+do+employers+want%3F&et=editorial&bu=BenefitsPRO&cn=20170721&src=EMC-Email_editorial&pt=Daily&page_all=1
How to Build Financial Wellness into a More Holistic Wellness Program
Are you looking for new ways to help your employees increase their financial wellness? Check out this great article by Michelle Clark from SHRM highlighting what HR can do to help employees engage with the company's benefits program to improve their financial situation.
The majority of HR professionals give their employees a financial health rating of “fair” and nearly 20 percent report that their employees are “not at all” financially literate according to a national SHRM survey.
That’s an issue. Because when employees are stressed about money they don’t turn their worry off at work – and the price is paid in lost productivity.
You can help fix the problem. Everyone wins when traditional employee wellness programs are recast in a more holistic, well-rounded way – with financial wellness an important cornerstone.
There is no cookie cutter solution. But if you build a customized program that’s responsive to specific requirements and comfort levels of different employee groups, it can be rewarding and valuable.
First, review your employee demographics to get an idea of what their financial situations may look like. For example, it’s understood that the majority of today’s workforce is comprised of three age groups: Baby Boomers, Generation X and Millennials. Each has different financial stressors and preferences on how they prefer to receive assistance:
- Boomers on the verge of retirement are wondering if they can afford it or even want to retire. If they need to work, they are worried they’ll have a hard time finding a job.
- Generation X can barely think about retirement planning when they’re trying to cover the mortgage, raise kids, save money for college and shoulder responsibilities for aging parents.
- Millennials are burdened by student loan debt while trying to stretch their paychecks so they can live on their own instead of with their parents.
There also are vastly different ways each accesses support. Boomers may be okay with online resources and one-on-one coaching. But Millennials and Gen Xers may want more high-tech resources such as websites offering basic money courses and worksheets to help with budgets, housing or investment planning.
Once a solution has been established, the next step is getting people to partake. You don’t want to target employees, since privacy is a major consideration. Offering options allows employees to engage privately on their own terms. That’s why the online solutions are ideal for individual financial issues, offered in tandem with more on-site sessions on general concerns. And there’s always the potential of offering one-on-one financial counseling or financial wellness coaches to round out your program.
See the original article Here.
Source:
Clark M. (2017 June 16). How to build financial wellness into a more holistic wellness program [Web blog post]. Retrieved from address https://blog.shrm.org/blog/shrm-blog-june-2017-how-to-build-financial-wellness-into-a-more-holistic-we
Unrealistic Expectations Muddy Employee Retirement Planning
Many younger employees have unrealistic dreams when it comes to planning their retirement. Here is a great article by Paula Aven Gladych from Employee Benefit Adviser on what you can do to help your millennial employees plan for their future retirement.
Three generations of U.S. investors accept that they are largely responsible for funding their own retirements. But many of them harbor unrealistic hopes of receiving a sizable inheritance as part of their funding plan.
These were among the conclusions drawn by a recent survey of 750 individual investors with a minimum of $100,000 in investable assets—including 223 millennials, 251 Gen Xers and 236 baby boomers.
The 2017 study was conducted by the U.S. research arm of Natixis Global Asset Management, a French company that is one of the 20 largest asset managers in the world. It found that 78% of investors recognize that more of the retirement funding burden is falling on their shoulders, since their employers have begun offering defined contribution retirement plans in lieu of defined benefit pension plans. And many also believe that Social Security won’t be available to them by the time they retire. But a significant percentage (43%) hope to receive an inheritance that will help them compensate for any savings shortfall.
This is especially true of millennials, who are twice as likely as baby boomers to expect that a financial windfall from their parents or grandparents will play an important role in meeting their retirement needs. Per the survey, 62% of millennials, compared to only 31% of boomers, anticipate receiving an inheritance that will help fund their retirement.
That’s a major disconnect, says Dave Goodsell, executive director of the Natixis Durable Portfolio Construction Research Center, which carried out the research. He points to findings that 40% of baby boomers don’t plan to leave an inheritance and 57% don’t think they will have anything left to pass down to their children or grandchildren. Only 56% even have a will in place.
Further exacerbating the situation, many of the investors surveyed underestimate the amount of savings they will need for retirement. They assume that they will only need replace 63% of their pre-retirement income, according to Goodsell, which is at odds with the retirement industry’s more conservative target of 75% to 85%.
Looking to the kids
Apart from an inheritance, many of the investors surveyed also believe they can count on their children for some sort of support when they retire, either through shared living arrangements or some type of stipend or allowance. “Retirement has become a multigenerational question,” Goodsell observes.
On the other hand, only 37% of the respondents say they expect Social Security to be an important source of income for their retirement. “There’s a great deal of skepticism,” notes Goodsell, “which should serve as a motivation to plan ahead for retirement and set realistic savings and spending goals.” Unfortunately, he adds, many investors’ decision making is clouded by unrealistic expectations.
Workplace 401(k) plans encourage savings discipline, since they make it easy for employees to save automatically. But in and of themselves they are insufficient, says the Natixis researcher, and employers need to help their employees make better financial determinations by providing them with retirement planning tools, including access to a financial adviser.
“Access is critically important,” he says. “Because responsibility is being shifted off to individuals, we need to make sure they have access to the right resources and understand how to use them.”
Key topics that need to be addressed, according to the survey, include financial planning basics, such as budgeting; how to manage and plan for required minimum distributions; tax, estate and long-term care planning, as well as managing debt and credit cards and understanding investment risk.
See the original article Here.
Source:
Gladych P. (2017 June 25). Unrealistic expectations muddy employee retirement planning [Web blog post]. Retrieved from address https://www.employeebenefitadviser.com/news/unrealistic-expectations-muddy-employee-retirement-planning?brief=00000152-1443-d1cc-a5fa-7cfba3c60000
Workers Willing to Leave a Job if Not Praised Enough
Praising your employees on a frequent basis is a great way to increase employee engagement and productivity. Take a look at this article by Brookie Madison from Employee Benefit News on how employees are more likely to leave a job if they do not feel like they're getting enough praise.
Employers may be spending more than $46 billion a year on employee recognition, reviews and work anniversaries, but recent research shows it could be worth the investment to commit even more to the effort.
Although more than 22% of senior decision-makers don’t think that regular recognition and thanking employees at work has a big influence on staff retention, 70% of employees say that motivation and morale would improve “massively” with managers saying thank you more, according to a Reward Gateway study.
By not receiving regular feedback on their performance, employees feel they are not progressing at work, says Glenn Elliott, CEO of Reward Gateway. In fact, nearly one in two employees reported they would leave a company if they did not feel appreciated at work, the study found.
This is particularly true of millennials, Elliott says, who make up the largest segment of the workforce, according to the U.S. Bureau of Labor Statistics. To this generation, “Saying thank you for good work or good behavior shows you values those things and want to see more of that behavior,” he says.
Overall, employees want praise and recognition more frequently than at annual awards ceremonies. Although 90% of senior decision-makers believe they prioritize showing appreciation and thanks in a timely way, more than 60% of workers would like to see their colleagues’ good work praised more frequently by managers and leaders.
“On average, businesses spend 2% on recognition,” says Elliott. “Businesses can increase effects of recognition by moving money from tenure-based to valued- and behavior-based recognition.”
More than eight out of 10 workers (84%) say praise should be given on a continual, year-round basis.
The Reward Gateway study polled 500 workers and 500 decision-makers in the United States, United Kingdom and Australia.
See the original article Here.
Source:
Madison B. (2017 June 11). Workers willing to leave a job if not praised enough [Web blog post]. Retrieved from address https://www.benefitnews.com/news/workers-willing-to-leave-a-job-if-not-praised-enough
Why Employee Engagement Matters – and 4 Ways to Build it Up
Do you need help building up engagement among your employees? Take a peek at this interesting article by Joe Wedgwood at HR Morning about the benefits of employee engagement and how to get your employees more engaged.
“Organizations with high employee engagement levels outperform their low engagement counterparts in total shareholder returns and higher annual net income.” — Kenexa.
Your people are undoubtedly your greatest asset. You may have the best product in the world, but if you can’t keep them engaged and motivated — then it counts for very little.
By making efforts to keep your people engaged, you will maximize your human capital investment and witness your efforts being repaid exponentially.
The benefits of an engaged workforce
Increase in profitability:
“Increasing employee engagement investments by 10% can increase profits by $2,400 per employee, per year.” — Workplace Research Foundation.
There is a wealth of research to suggest that companies that focus on employee engagement will have an emotionally invested and committed workforce. This tends to result in higher profitability rates and shareholder returns. The more engaged your employees are the more efficient and productive they become. This will help lower operating costs and increase profit margins.
An engaged workforce will be more committed and driven to help your business succeed. By focusing on engagement and investing in your people’s future, you will create a workforce that will generate more income for your business.
Improved retention and recruitment rates:
“Replacing employees who leave can cost up to 150% of the departing employee’s salary. Highly engaged organizations have the potential to reduce staff turnover by 87%; the disengaged are four times more likely to leave the organization than the average employee.” — Corporate Leadership Council
Retaining good employees is vital for organizational success. Engaged employees are much less likely to leave, as they will be committed to their work and invested in the success of the company. They will have an increased chance of attracting more qualified people.
Ultimately the more engaged your people are, the higher their productivity and workplace satisfaction will be. This will significantly reduce costs around absences, recruitment, training and time lost for interviews and onboarding.
Boost in workplace happiness:
“Happy employees are 12%t more productive than the norm, and 22% more productive than their unhappy peers. Creating a pleasant workplace full of happy people contributes directly to the bottom line.” – Inc.
Engaged employees are happy employees, and happy employees are productive employees. A clear focus on workplace happiness, will help you to unlock everyone’s true potential. On top of this, an engaged and happy workforce can also become loyal advocates for your company. This is evidenced by the Corporate Leadership Council, “67% of engaged employees were happy to advocate their organizations compared to only 3% of the disengaged.”
Higher levels of productivity:
“Employees with the highest levels of commitment perform 20% better than employees with lower levels of commitment.” — The Society for Human Resource Management (SHRM).
Often your most engaged people will be the most dedicated and productive, which will give your bottom line a positive boost. Employees who are engaged with their role and align with the culture are more productive as they are looking beyond personal benefits. Put simply, they will work with the overall success of the organization in mind and performance will increase.
More innovation:
“Employee engagement plays a central role in translating additional job resources into innovative work behaviour.” — J.J. Hakanen.
Employee engagement and innovation are closely linked. Disengaged employees will not have the desire to work innovatively and think of new ways to improve your business; whereas an engaged workforce will perform at a higher level, due to increased levels of satisfaction and interest in their role. This often breeds creativity and innovation.
If your people are highly engaged they will be emotionally invested in your business. This can result in them making efforts to share ideas and innovations with you that can lead to the creation of new services and products — thus improving employee profitability.
Strategies to increase employee engagement
Communicate regularly:
Every member of your team will have valuable insights, feedback and suggestions. Many will have concerns and frustrations too. Failure to effectively listen and respond to everyone will lower their engagement and negatively affect the company culture.
Create open lines of communication and ensure everyone knows how to contact you. This will create a platform for your people to share ideas, innovations and concerns with you. It will also bridge gaps between senior management and the rest of the team.
An effective way to communicate and respond to everyone in real-time is by introducing pulse surveys — which will allow you to gather instant intelligence on your people to help you understand the sentiment of your organization. You can use this feedback to create relevant action plans to boost engagement and make smarter business decisions.
Take the time to respond and share action plans with everyone. This will ensure your people know that their feedback is being heard and can really make a difference.
Recognize achievements:
“The engagement level of employees who receive recognition is almost three times higher than the engagement level of those who do not.” — IBM Smarter Workforce Institute.
If your people feel undervalued or unappreciated then their performance and profitability will decrease. According to a survey conducted by technology company Badgeville, only 31% of employees are most motivated by monetary awards. The remaining 69% of employees are motivated by job satisfaction, recognition and learning opportunities.
Make efforts to celebrate good work and recognize everyone’s input. Take the time to personally congratulate people and honor their achievements and hard work. You will likely be rewarded with an engaged and energized workforce, that will make efforts to impress you and have their efforts recognized.
Provide opportunities for growth:
Career development is key for employee engagement. If your people feel like their careers are stagnating, or their hard work and emotional investment aren’t being reciprocated — then you can be certain that engagement will drop.
By meeting with your people regularly, discussing agreed targets and time frames, and clearly highlighting how they fit into the organizations wider plans, you can build a “road map” for their future. This will show that their efforts and hard work aren’t going unnoticed.
Improve company culture:
“Customers will never love a company until the employees love it first.” — Simon Sinek.
Building a culture that reflects your brand and creates a fun and productive working environment is one of the most effective ways to keep your employees engaged. It’ll also boost retention and help recruitment efforts. If your culture motivates everyone to work hard, help each other, become brand ambassadors, and even keep the place clean — then you have won the battle.
An engaged and committed workforce is a huge contributor to any organization’s bottom line. The right culture will be a catalyst to help you achieve this.
Here’s how you can improve the company culture within your organization:
- Empower your people: Empowered employees will take ownership of their responsibilities, solve problems and do whatever it takes to help your company succeed. This will drive your company culture forward. Demonstrate you have faith in your people and trust them to fulfill their duties to their best of their abilities. This will ensure they feel valued, which can lead to empowerment.
- Manage and communicate expectations: Your people may struggle to understand your cultural vision. By setting clear and regular expectations and communicating your vision via posters, emails, discussions and leading by example, you will prevent confusion and limit deviation from your desired vision.
- Be consistent: To sustain a consistent culture, you must show uniformity with your actions and communications. Make efforts to have consistent expectations and standards for all your workers, and communicate everything in the same way.
By focusing on employee engagement and investing in your people, they will repay your efforts with an increase in performance, productivity and — ultimately — profit
See the original article Here.
Source:
Wedgwood J. (2017 June 8). Why employee engagement matter - and 4 ways to build it up [Web blog post]. Retrieved from address https://www.hrmorning.com/employee-engagement-ways-to-build-it-up/
Losing Sleep Over Benefits Technology? Get Over It!
Are you having a hard time figuring out all the different technologies associated with your benefits program? Read this great article by Linda Keller from SHRM on how to navigate through the different technologies accociated with you employee benefits program .
It’s easy to get caught up wanting to deliver a sophisticated platform to engage your workforce. Many benefits technology solutions promise to make employees smarter consumers of health care through slick recommendation engines, bots, and avatars delivered on smart phones.
I advise you to keep these three things in mind when you evaluate benefits technology:
See the original article Here.
Source:
Keller L. (2017 May 23). Losing sleep over benefits technology? get over it! [Web blog post]. Retrieved from address https://blog.shrm.org/blog/losing-sleep-over-benefits-technology-get-over-it