How to encourage increased investment in financial well-being

Disappointed that your employees are not putting enough into your company's financial programs. Take a look at this article from Employee Benefits News for some helpful tips to help improve your employees' spending on financial well-being by Cort Olsen,

As few as 15% of employers say they are satisfied with their workers’ current savings rate in programs such as 401k(s), according to a new report from Aon Hewitt. In response, employers are increasingly focused on increasing savings rates and looking to expand financial well-being programs.

More workplace wellness programs are including a financial component, in which employers aim to help employees with financial issues from budgeting to paying down debt to saving for retirement.

Aon Hewitt surveyed more than 250 U.S. employers representing nearly 9 million workers to determine their priorities and likely changes when it comes to retirement benefits. According to the report, employers plan to emphasize retirement readiness, focusing on financial well-being and refining automation as they aim to raise 401(k) savings rates for 2017.

Emphasizing retirement readiness
Nearly all employers, 90%, are concerned with their employees’ level of understanding about how much they need to save to achieve an adequate retirement savings. Those employers who said they were not satisfied with investment levels in past years, 87%, say they plan to take action this year to help workers reach their retirement goals.

“Employers are making retirement readiness one of the important parts of their financial wellbeing strategy by offering tools and modelers to help workers understand, realistically, how much they’re likely to need in order to retire,” says Rob Austin, director of retirement research at Aon Hewitt. “Some of these tools take it a step further and provide education on what specific actions workers can take to help close the savings gap and can help workers understand that even small changes, such as increasing 401(k) contributions by just two percentage points, can impact their long-term savings outlook.”

Focusing on financial well-being
While financial wellness has been a growing trend among employers recently, 60% of employers say its importance has increased over the past two years. This year, 92% of employers are likely to focus on the financial well-being of workers in a way that extends beyond retirement such as help with managing student loan debt, day-to-day budgeting and even physical and emotional wellbeing.

Currently, 58% of employers have a tool available that covers at least one aspect of financial wellness, but by the end of 2017, that percentage is expected to reach 84%, according to the Aon Hewitt report.

“Financial wellbeing programs have moved from being something that few leading-edge companies were offering to a more mainstream strategy,” Austin says. “Employers realize that offering programs that address the overall wellbeing of their workers can solve for myriad challenges that impact people’s work lives and productivity, including their physical and emotional health, financial stressors and long-term retirement savings.”

The lessons learned from automatic enrollment are being utilized to increase savings rates. In a separate Aon Hewitt report, more than half of all employees under plans with automatic enrollment default had at or above the company match threshold. Employers are also adding contribution escalation features and enrolling workers who may not have been previously enrolled in the 401(k) plan.

“Employers realize that automatic 401(k) features can be very effective when it comes to increasing participation in the plan,” Austin says. “Now they are taking an automation 2.0 approach to make it easier for workers to save more and invest better.”

See the original article Here.

Source:

Olsen C. (2017 February 06). How to encourage increased investment in financial well-being [Web blog post]. Retrieved from address https://www.benefitnews.com/news/how-to-encourage-increased-investment-in-financial-well-being?brief=00000152-14a7-d1cc-a5fa-7cffccf000


10 tips for next generation benefits

Great article from Benefits Pro about ten tips to help improve your benefits for the next generation by Erin Moriarty-Siler,

If brokers and their clients want to continue to attract and, more importantly, retain millennials and other generations entering the workforce, they'll need to start rethinking benefits packages.

As part of our marketing and sales tips series, we asked our audience for their thoughts on the next generation and their benefits needs.

Here are the 10 tips we liked best.

1. Show appreciation

“Even if you don't have the time and resources to roll out the red carpet each time an employee joins your team, they should feel as if you do. Even something as simple as a team lunch to welcome them and a functioning computer can go a long way toward making a new employee feel valued and at home.” Sanjay Sathe, president & CEO, RiseSmart.

2. Real world benefits

“It's important for benefits professionals and brokers to transform their organizations’ benefits offerings to align better with what both the individual and the generational millennials value — benefits that reflect the real world in which all generations in today's workforce think about the interconnection between their careers, employers, and personal lives.” Amy Christofis, client account executive, Connecture, Inc.

3. A millennial world

“One can no longer think of millennials as the ‘kids in the office.’ They are the office.” Eric Gulko, vice president, Summit Financial Corporation

4. New normal

Millennials are no longer just data and descriptors in a PowerPoint slideshow about job recruitment. They are now the majority, and how they do things will soon be the norm. It's important to consider these implications.

5. Innovation

“If we want to build organization that can innovate time and again, we must recast our understanding of what leadership is about. Leading innovation is about creating the space where people are willing and able to do the hard work of innovative problem solving.” Linda Hill, professor of business administration, Harvard Business School

6. Don't make assumptions

“Just because millennials are comfortable using the internet for research doesn't mean they don't also like a personal touch. Employers need to be wary of relying on only one communication vehicle to reach millennials. Sixty percent of millennials say they would be willing to discuss their benefits options with someone face to face or over the phone.” Ken Meier, vice president, Aflac Northeast Territory

7. The power of praise

“The prevailing joke is that millennials are ‘the participation trophy generation,’ having always been praised just for showing up, not necessarily winning. Turn that negative perception into a positive by realizing that providing constructive, encouraging feedback when it's earned motivates this generation to strive for even more successes.” Kristen Beckman, senior editor, LifeHealthPro.com

8. Embrace diversity

“For the first time, employers are likely to have up to five generations working together — matures, baby boomers, Generation X, millennials (Generation Y) and now Generation Z. From their workstyles to their lifestyles, each generation is unique.” Bruce Hentschel, leads strategy development, specialty benefits division, Principal Financial Group

9. Non-traditional needs

“Millennials have moved the needle in terms of work-life balance. They don't expect to sit in their cubicles from 9-5. They want flexibility in their work location and hours. However, on the flip side of that, they are more connected to their work than generations before, often logging ‘non-traditional’ work hours that better fit into their lives.” Amy Christofis, client account executive at Connecture, Inc.

10. Listen in

“If there's one thing the Trump victory teaches us, it's to listen to the silence in others. Millennials may be giving the financial industry the silent treatment, but that doesn't mean they don't want to talk.” Christopher Carosa, CTFA, chief contributing editor,FiduciaryNews.com

 

See the original article Here.

Source:

Moriarty-Siler E. (2017 February 03). 10 tips for next generation benefits [Web blog post]. Retrieved from address https://www.benefitspro.com/2017/02/03/10-tips-for-next-generation-benefits?page_all=1


9 questions employees have about ACA – and how to answer them

Have your employees been asking more questions about the ACA? Check out this great article from HR Morning about some of the question your employees might ask and how to answer them by Christian Schappel

Even under the Trump administration, the Affordable Care Act (ACA) is still a real, enforceable law. You already know this. But do all of your employees? 

Chances are, once employees start getting their ACA-mandated 1095 forms from you in the next few weeks, some of them are going to have questions — à la: What is this? I thought Trump did away with Obamacare.

Here are some of the questions employees are asking — and are bound to ask — along with how HR can answer them:

1. Didn’t Trump repeal Obamacare?

No. While he has promised to “repeal and replace” the ACA, all he has done so far is sign an executive order that directs federal agencies to grant certain exemptions from the law, as well as waive any requirements that they’re able to by law.

Surely, the executive order will eventually weaken some parts of the ACA — and maybe even lead to some repeals — but nothing concrete has happened yet. As a result, employers still have to comply with the “play or pay” mandates, and individuals still have to carry health insurance or risk penalties.

2. Didn’t Republicans in Congress start repealing the law?

No. Republicans in Congress don’t have the votes they need to repeal the ACA outright. They can’t avoid a Democratic filibuster.

As a result, what they have done is state their intention to attack the law through a process known as reconciliation. It’ll allow Republicans to vote on budgetary pieces of the law — like the individual mandate (which is imposed with a tax) and healthcare subsidies — without giving the Democrats a chance to filibuster.

The problem for Republicans, though, is that reconciliation limits how they can reshape (or repeal) Obamacare.

3. Then when will Obamacare be repealed?

All you can tell employees right now is that it hasn’t happened, and there is no clear answer on when (or even if) it will happen in its entirety.

However, Republicans recently made two things clear at its recent annual retreat in Philadelphia:

  • They plans to use the reconciliation process to “repeal and replace” parts of the law.
  • The GOP will bring a final reconciliation package to the floor of the House of Representatives by late February or early March.

Chances are, we’ll find out more once Trump’s cabinet picks — specifically his pick to lead the Department of Health and Human Services — have been confirmed.

4. If I have a pre-existing condition, will I have trouble finding a health plan?

President Trump, as well as Republicans in Congress, have stated their intentions to attempt to keep two popular requirements of the ACA in place:

  • The need for insurance companies to offer coverage to individuals with pre-existing conditions.
  • The ability for children to be able to stay on their parents’ health plans until age 26.

Form 1095 questions

5. What is this form?

Form 1095 is a little like Form W-2: The employer or insurer sends one copy to the Internal Revenue Service (IRS) and one copy to the employee. It describes whether the person obtained the minimum required level of health insurance under the ACA in 2016.

It also informs the IRS, and the employee, if the person was eligible for a premium tax credit in 2016.

6. If Obamacare is going to be repealed, do I still need this form?

Yes. The reason is because the ACA was in effect for all of 2016, and this form is for reporting information that reflects what happened in 2016.

7. What do I have to do with it?

In most cases, no action will be necessary. When filing taxes for 2016, individuals will be asked if they obtained minimum insurance coverage. This form will help individuals answer that question.

8. Do I have to wait to receive the form to file my taxes?

Again, in most cases, the answer is no. Only those who received insurance via an exchange or the “marketplace” will have to wait for their 1095 to file their taxes.

If a person received insurance through an employer, that person doesn’t have to wait for Form 1095 to file his or her taxes, assuming the person already knows whether or not they had minimum coverage throughout the year. In that case, the person can just keep the form for their records.

If a person’s unsure whether he or she had minimum coverage for the entire year, that person can wait for the form to file their taxes or ask their employer whether he or she had minimum coverage.

9. How will I receive the form(s)?

Individuals may receive their form(s) in one of three ways:

  • mail
  • hand delivery, or
  • electronically (if they have consented to receive it electronically).

See the original article Here.

Source:

Schappel C. (2017 February 1). 9 questions employees have about ACA- and how to answer them [Web blog post]. Retrieved from address https://www.hrmorning.com/employee-questions-aca-obamacare-repeal-answers/


Target employee financial needs by finding the right technology

Are you looking for new ways to help improve your employees' financial needs? Take a look at this interesting article from Employee Benefits Advisors about how the use of technology can improve your employees' financial needs by Mark Singer

We have seen how a large percentage of the American workforce has an inadequate degree of financial literacy, and how the lack of basic financial knowledge causes personal problems and workplace stress. We have also seen the importance of financial education and how raising employee literacy directly benefits the bottom lines of companies.

The financial health of employees can vary greatly between companies, as can employee numbers. Work schedules and available facilities are other issues of variance. There is also the interest factor to address. Employees must find programs interesting and beneficial, or they will not attend or glean maximum results. Financial wellness programs that may be beneficial and successful for one company may be burdensome and unsuccessful for another. To meet pressing personal financial problems effectively, cutting-edge technologies need to be applied that both address immediate employee issues and limit company expense.

There are numerous new technologies that can be utilized in a mix-and-match fashion that successfully target employee financial needs. This age of the World Wide Web brings a host of financial education tools directly to the audience. Informational videos, virtual learning programs, webinars, training portals and other virtual solutions are easily accessible over the Internet and most are quite user-friendly. This mode of education is significant. For example, 84% of respondents to a survey conducted by Hewlett-Packard and the National Association for Community College Entrepreneurship said that e-tools were valuable. The study went on to show that modalities containing some degree of online training were preferred by 56% of respondents.

Gaming and data
One form of online educational technology that is gaining momentum as well as results is known as game-based learning. This method of learning is particularly popular with the millennial generation that has grown up with an ever-increasing variety of online gaming. In 2008, roughly 170 million Americans engaged in video and computer games that compel players to acquire skills necessary to achieve specific tasks. It has been found that well-designed learning programs that utilize a gaming sequence improve target learning goals. Such games teach basic financial lessons in a fun and innovative way that requires sharpened financial skills to progress through the programs.

Technological tools not only benefit those that are utilizing them directly, but they also assist the entire community through the collection of key data. Many of the mentioned tools embed surveys within programs or collect other data such as age, income and location, which can be used to create even better educational materials or better target groups in need of specialized services.

Employers need to realize that they benefit when they utilize these new technologies in their financial wellness programs, since these tools assist workers in taking control of their financial lives. Thereby reducing their stress levels, which in turn leads to happier and more productive employees. Sometimes it is best to meet the employees where they are, with tools that are easy and fun to use.

See the original article Here.

Source:

Singer M. (2017 February 02). Target employee financial needs by finding the right technology [Web blog post]. Retrieved from address https://www.employeebenefitadviser.com/opinion/target-employee-financial-needs-by-finding-the-right-technology


What Trump’s ACA executive order means for employers

Great article from Benefits Pro by Nick Otto.

President Donald Trump wasted no time in fulfilling one promise he made time and again on his campaign trail in undoing the Affordable Care Act on day one in office.

On Friday, Trump issued an executive order directing members of his administration to take steps that will facilitate the repeal and replacement of the ACA, but experts note employers should continue with business as usual until solid formalities come out.

From an employer’s perspective, “every regulation they need to comply with, they still need to until they hear differently,” says Steve Wojcik, vice president of public policy at the National Business Group on Health.

What Trump’s order did was send a signal to everyone that his administration is prioritizing to repeal major parts of the ACA and to replace it with something else.

“In terms of specifics, nothing changes now, and it makes it clear that some changes may take longer than others because of the regulatory process to revise existing regulations,” Wojcik notes.

This specific order reiterates that it is administration policy to seek the repeal and replacement of the ACA and directs relevant agencies like Health and Human Services, Treasury and Labor, to utilize their authorities under the act “to minimize the unwarranted economic and regulatory burdens of the Act, and prepare to afford the States more flexibility and control to create a more free and open healthcare market,” according to the order.

But the different agencies will have to follow the law that requires notice and commenting periods before any final regulation is put in place, adds Chatrane Birbal, a government relations senior advisor with the Society for Human Resource Management.

“Trump’s administration is drawing a line in the sand,” she says. “While Congress is working on making its changes on a legislative front, Trump wants to move forward with the regulatory side.”

The most immediate focus will be whether the IRS acts to delay the employer reporting requirements under the employer shared responsibility provisions of the law, points out Joy Napier-Joyce, principal and leader of the employee benefits group at labor & employment law firm Jackson Lewis P.C.

“Employer reporting is key to assessing employer penalties under the employer mandate, [but it] represents a significant burden to employers and the deadlines are fast approaching,” she says. Similarly, Napier-Joyce says, “we have not seen enforcement of employer penalties under the employer mandate to date.”

Especially given Trump’s announcement Monday of a hiring freeze for federal workers and the known shortage of resources at the IRS, employers will be eager to glean hints as to any non-enforcement stances, she says. Much of the requirements under the employer mandate have been formalized through statute and regulation, so in order to effectively and completely reverse course, formal processes will need to be followed, which will in turn take time.

“For now, employers should stay the course, but stay tuned as we await how and when the agencies, particularly the IRS, choose to exercise discretion,” Napier-Joyce adds.

One issue Birbal advises keeping an eye on is that the executive order calls for greater flexibility to states.

“This could be a concern for employers because it doesn’t recognize ERISA preemption,” she notes. “It has provided employers and employees with a workable regulatory framework for benefits, offering uniform set of benefits to employees throughout out the U.S.”

“We believe the flexibility and certainty of the ERISA framework already in place has been a success to the employers sponsored system and we hope that’ll be maintained,” she adds.

Another area to note, says NBGH’s Wojcik, is how providers could be impacted by the order.

“There are a lot of punitive delivery reform regulations that are in various stages of completion or haven’t been issued,” he says. “To the extent that that affects hospitals and physicians, it could be an area where you see a lot of impact besides issues like the individual mandates and excise tax.”

As for policies that were still in the works, “if something hasn’t come out yet, it’s likely that it won’t come out ever based on executive order,” Wojcik notes.

See the original article Here.

Source:

Otto N. (2017 January 23). What trump's ACA executive order means for employers [Web blog post]. Retrieved from address https://www.benefitnews.com/news/what-trumps-aca-executive-order-means-for-employers?feed=00000152-18a4-d58e-ad5a-99fc032b0000


Only 1 in 3 employees actually understands how their 401(k) works

Do all of your employees understand how their 401(k) works? If not check out this article from HR Morning on the statistics of about 1 in 3 employees that do not understand their 401 (k) by Jared Bilski,

When it comes to common financial vehicles like 401(k) plans, term life insurance, Roth IRAs and 529 college savings plans, most workers could use some education on the finer points.  

In fact, according to a recent study by The Guardian Life Insurance Company of American, one-third or  less of employees said they had a solid understanding of the most common financial products.

Problem areas

Here is the specific breakdown from the Guardian Life study on the percentage of worker that said they have a solid understanding of various financial products:

  • 401(k)s and other workplace retirement plans (just 32% of workers said they had a solid understanding)
  • IRAs apart from Roth IRAs (27%)
  • Individual stocks and bonds (26%)
  • Mutual funds (25%)
  • Pensions (25%)
  • Roth IRAs (24%)
  • Term life insurance (23%)
  • Separately managed accounts (23%)
  • Disability insurance (23%)
  • 529 college savings plans (23%)
  • Whole life insurance (22%)
  • Business insurance, such as key person insurance or buy/sell agreements (20%)
  • Annuities (19%)
  • Universal life insurance (19%), and
  • Variable universal life insurance (18%).

Education vs. no education

One of the best ways to help workers garner a better understanding of their finances — and the financial products available to them — is through one-on-one education.

Consider this example:

The Principal Group compared the saving habits and financial acumen of workers who attended a one-on-one session the organization offered one year to those who didn’t.

What it found: Contribution rates for those who attended the session were 9% higher than those who didn’t. Also, 19% of the workers who received education opted to automatically bump up their retirement plan increases with pay increases, compared to just 2% of other employees.

Also, 92% of the employees who were enrolled in Principal’s education program agreed to take a number of positive financial steps, and 80% of those workers followed through on those steps.

See the original article Here.

Source:

Bilski J. (2017 January 27). Only 1 in 3 employees actually understands how their 401(k) works [Web blog post]. Retrieved from address https://www.hrmorning.com/only-1-in-3-employees-actually-understands-how-their-401k-works/


Why technology is not just a ‘thought but a necessity’

Are you utilizing your technology to its advantages? Check out this article from Employee Benefits Advisors about the importance of technology in today's marketplace by Brian M. Kalish

More than half of all brokers nationwide are still using paper and have no online database of their clients — but the industry is about to reach a tipping point, where those still using old processes will be left behind.

According to a recent survey of 10,000 brokers by hCentive, 54% still use paper and 53% have no online database.

Having no online database is the most challenging part, Lisa Collins, director of business development at hCentive said a recent event for brokers sponsored by the company in Reston, Va. Those brokers, she said, lack a central place for their resources.

But for brokers still using these old processes, the industry is reaching a tipping point, she said, where “technology is not just a thought [but] a necessity.”

It will become necessary, she explained, because the industry is demanding technology solutions as employers look to their brokers to provide more services with less commissions. On top of that, HR broker tech startups, such as Zenefits, Namely and Gusto are taking business away. These firms offer technology solutions for free and become the broker of record — and they are moving upmarket, Collins added. The tech startups, Collins added, are taking business from more traditional brokers.

These tech startups are directly approaching adviser’s clients, she said. Clients are responding to these HR tech startups because of challenging and changing requirements of HR, including Affordable Care Act compliance.

“Clients are asking for more than ever,” she said. “It used to [broker’s] sold insurance. Now they are a true consultant and risk mitigator.”

“Clients want more and more and it is challenging with less commission dollars to work with,” she added. “You have more competition than you have ever had.”

Advisers need to provide value, as benefits are likely to be a top three expense for an employer, added Brian Slutz, regional sales manager at hCentive.

The future
Looking toward the future, many questions still remain about President Donald Trump’s plans for healthcare and employee benefits, but a few things are likely to be consistent, which can be streamlined with technology, including:

  • Consumer-driver healthcare is staying, Collins said, and with that comes the growth of health savings accounts. As a result, more voluntary products can be sold. Technology enables that through decision support tools that suggest these products to employees.
  • Cost transparency tools: “A really critical tool,” Collins said. Viable systems are hitting the marketplace now and technology provides answers employees are seeking on healthcare costs
  • Personalized communications: With more choice and more complication comes the need for education, Collins said. Technology solutions are becoming more customized to speak to an individual employee with targeted communication to a particular generation.

See the original article Here.

Source:

Kalish B. (2017 January 31). Why technology is not just a 'thought but a necessity' [Web blog post]. Retrieved from address https://www.employeebenefitadviser.com/news/why-technology-is-not-just-a-thought-but-a-necessity?brief=00000152-1443-d1cc-a5fa-7cfba3c60000


Employers prioritizing employee well-being

Are you putting enough priority into your employees' well-being? Take a look at this article from Employee Benefits Advisor   about the importance of employee well-being by Nick Otto

Benefits managers and HR pros alike know the two-fold benefits well-being programs provide: a healthier, more engaged workforce and increased productivity. So it’s no wonder more companies are prioritizing such programs.

A large majority of employers (78%) call employee well-being a key component of company strategy, according to Virgin Pulse’s 2017 State of the Industry report. In addition, 87% say they have already invested, or plan to invest, in some type of employee well-being initiative, and 97% agree with the decidedly uncontroversial statement that worker well-being positively influences engagement.

“Until recently, employee well-being has been viewed as a ‘nice to have,’ but with more and more research directly connecting employee well-being to business productivity and performance, business leaders are recognizing it as a ‘must have’ from a business perspective,” says Chris Boyce, CEO of Virgin Pulse, a wellness technology provider. “The proof is in the data that emerging-companies that invest in employee well-being see lower turnover, less absenteeism, stronger stock performance and higher business productivity. That’s a compelling business case.”

But what programs do employers say are advancing wellness and engagement? Opinions seem to differ. Forty-one percent of the organizations surveyed by Virgin Pulse are still in the process of defining employee engagement or developing a plan to enhance it.

Further, a little less than a third (29%) of respondents have established engagement programs to fit specific needs or offer an integrated solution that links to organizational strategy, the report notes.

One of the more striking differences between the older, or more “mature” organizations, accounting for 29% of those surveyed, and the rest of the employers is that the great majority of the former group conducts annual employee engagement surveys, compared to less than half of other employers.

By completing these surveys, some roadblocks employers say they are encountering in engaging more employees in well-being programs include issues such as organization culture (48%), budgets (47%) and communications (30%), the study notes.

For benefits managers, making sure that all employees have access to benefits and programs that address their full well-being — and having the ability to communicate those programs and measure usage and impact — is critical in proving the value of wellness programs, Boyce notes.

“Today, businesses can and should be looking beyond wellness and health cost savings and evaluating employee well-being programs in the context of the larger cultural and business value they deliver, such as increased employee engagement and retention, reduced safety incidents, decreased absenteeism and higher business productivity,” he adds.

In fact, a large majority of HR leaders view workplace culture as an important part of furthering employee well-being. Eighty percent have programs in place or plan to implement programs aimed at improving culture at the office.

Beginner organizations can jump-start their well-being initiatives by offering well-being programs, experiences and activities that engage all employees, not just a few, Boyce suggests. Social connections and team support are critical in building — and sustaining — cultures of well-being, so the more actively involved employees are in the program, the more successful it will be in driving the changes and outcomes that matter for individuals and organizations.

“As organizations continue to focus on individual well-being as a positive driver of company culture, they are going to see happier, healthier, more engaged employees and better business results, across the board,” he says. “That’s just good business sense.”

The best way to implement a robust program that meets the individual needs of employees —while simplifying management and communication for employers — is to find a well-being vendor that has a hub embedded with their solution, Boyce says.

A hub that provides a one-stop-shop experience by connecting all relevant programs into a single space allows employees to access all their resources in one interface while driving participation and usage. With the right well-being and benefits hub, employers will be able to integrate a broad range of HR and benefits programs and promote them to relevant employees and populations.

“Imagine being able to suggest your financial planning program to employees that are new to the workforce, physical activity programs to those who are most sedentary, and mindfulness programs to departments in the throes of their busy season,” Boyce says. “Simplification, employee engagement and personalization are key to building a robust well-being program.”

See the original article Here.

Source:

Otto N. (2017 January 27). Employers prioritizing employee well-being [Web blog post]. Retrieved from address https://www.employeebenefitadviser.com/news/employers-prioritizing-employee-well-being?brief=00000152-1443-d1cc-a5fa-7cfba3c60000


10 tips for furthering benefits education

Are you looking for some new ways to educate yourself in the world of benefits? Here are some great tips from Benefits Pro you can use to help increase your knowledge about benefits by Erin Moriarty-Siler

In order to maintain relevant in today's ever-changing benefits market, it's important that brokers and benefits professionals keep learning.

Whether that be by networking with others in the industry, diving in with new technology efforts, or simply chatting about client needs, it's essential industry professionals keep learning.

As part of our our marketing and sales tips series, we asked our audience for their thoughts on how to continue their benefits education.

Here are the 10 tips we liked best.

1. Cost-effective education excites employees

Employees are eager to better themselves, especially if doing so can be cost effective through innovative benefits. Consider offering financial planning and educational services like career development courses or college prep classes, as these are becoming more and more popular.

2. Industry events

Disruption will continue in the insurance industry, but will you be able to keep up? Stay up-to-date by attending industry events, such as the BenefitsPRO Broker Expo in April.

3. Practice makes perfect

To retain knowledge and keep a competitive edge, it's important to practice and refresh skills year-round (think social media training, for instance).

4. It's not a "no," it's a growth opportunity

Treat rejection as a learning opportunity. Find ways to turn a no into a yes and remember that persistence prevails.

5. Trial and error is the best teacher

“Experiments are usually about learning. When you get a negative outcome, you’re still really learning something that you need to know.” Linda Hill, professor of business administration, Harvard Business School

6. Think outside your own experience

Look to your colleagues for exclusive insight you might not have. Ask a younger co-worker what they’d most like out of a benefits package, or what type of insurance is best for your officemate nearing retirement.

7. Learning and education are not created equal

“I’m a three-time college dropout, so learning over education is very near and dear to my heart, but to me, education is what people do to you, learning is what you do to yourself.” Joi Ito, director, MIT Media Lab

8. Become the expert

“You can distinguish yourself with top-notch technical or industry knowledge. It pays to be viewed as an expert, whether in risk management or the regulatory landscape. You’ll open up many opportunities by becoming an authority.” Renee Preslar, communications manager, Transamerica Employee Benefits

9. Money, money, money

“The No. 1 employee wellness trend in 2017 will be an increasing focus on helping employees better themselves financially by providing the tools, resources, education and environment to improve their finances.” Matt Cosgriff, retirement plan consultant, BerganKDV Wealth Management.

10. Too much is never enough

“You can never be overdressed or overeducated.” Oscar Wilde

See the original article Here.

Source:

Moriarty-Siler E. (2017 January 24). 10 tips for furthering benefits education[Web blog post]. Retrieved from address https://www.benefitspro.com/2017/01/24/10-tips-for-furthering-benefits-education?ref=hp-news&page_all=1


Strategic Talent Investment

Looking for ways to develop existing talent? Check out this interesting article from SHRM about the impact and benefits of investing in talent by Sharon Margules

Limited dollars for talent development? High expectations for measurable impact? More requests and expressed needs than resources available? These are just some of the challenges facing HR today. The solution: make strategic talent investments that directly link to the business strategy.
Successful organizations have business strategies that define their winning aspiration, where they will play, how they will win and the capabilities and systems they need to have in place to execute.i From my experience, the volatile marketplace has challenged leaders to craft sustainable, competitive strategies and for those that do, many still don’t thoughtfully consider the capabilities and aligned systems needed to operationalize their strategy. While there are exceptions to this conclusion, it is more commonplace to see lagging talent strategies and business systems.
For HR’s part in this, they need to adopt a mindset shift from being reactive and “in service” to proactive and a “strategic partner” in enabling the business strategy. Throughout my career I observed HR wait for the strategy to be defined by the “business” before they determine the actions they need to take in support. That doesn’t work. The time to make a difference is during the creation of the business strategy so everyone involved understands the organization’s current readiness to address the where to play and how to win choices. Absent that perspective, leaders are making assumptions about what can and can’t be achieved to execute their strategy. When it comes time to build budgets, the lack of forethought into what it will take to execute in terms of both capabilities and systems, becomes an unaligned mess. Budgets become grocery lists of investments that are only very nominally linked to the business strategy. No one is thinking through what capabilities and systems are truly critical to enable the strategy execution.
How Do You Get More Strategically Aligned with the Business?
As I mentioned, HR executives need to adopt a mindset shift and assume a more proactive role during the strategy formation. They need to exert their influence on the leadership team when making choices of where to play and how to win. They need to come prepared to share a clear understanding of where the organization is today from a talent and a HR systems perspective. This means leaders need to already have in place an effective means of classifying the current talent capabilities they have, where the gaps are against the current strategy and knowledge of their pools of talent in each of their core areas. An infrastructure of integrated approaches to assessment, talent planning, attraction and hiring, performance management, and compensation needs to be functioning at a high level to provide HR executives with the necessary data for strategic decision making. Furthermore, HR executives must have sufficient knowledge of the business, the competition and the consumer. Otherwise, recommendations on strategy will lack sufficient credibility. With the data and knowledge available then HR can make strategic investment decisions.
How Do You Make Strategic Talent Investment Choices?
If you have clarity around the business strategy and know where you are today in terms of capabilities and where you need to be to execute the strategy, then making these decisions will be straightforward. Most organizations struggle with unclear priorities and massive tactical “to do” lists that are not aligned with the strategy. Your plans need to be directly tied to the business strategy.
Building a strategic investment plan means you make critical, differentiated investments in core/key talent areas that will have the most significant impact on your business strategy. Just as a business has to choose what it will and won’t do as part of creating their strategy, HR needs to have the discipline to make choices. That can mean you allocate some of your investment across frontline leaders as you implement a new service model. Or, perhaps it is an investment in high potential mid-level leaders who need to make the transition to managing larger scope across broader global teams. The point is, regardless of where you do and don’t make investments, your choices should be a result of strategic input at the beginning stages of business strategy formation. Failure to make the strategic connection and to monetize the ROI will lead you to arbitrary HR decision making and ineffective solutions.
Similarly, the absence of the right talent development solutions will bring further failure in delivering against the capability requirements for the strategy. The keys to strategic talent investment: link business strategy to investment choices, to solution identification, and follow through with execution and measurement.
Using this as a model to build your talent development plans will significantly increase your chances of investing in the right solutions, for the right audience, at the right time and with the right results.
How Do You Build a Case For Your Talent Investments?
The question you need to ask first is: Will making an investment in this population, in this solution, in this initiative facilitate the accomplishment of our business strategy?
Even if you answer yes, organizations may still cut the talent investments that most directly impact their ability to achieve their strategy.
For example, I recently led a high potential program designed to build general management capabilities among leaders from product functions who were experts in each of their fields. The goal, originally defined by the CEO, was to create a pool of GMs that could take on leadership of businesses that were becoming more global and integrated. Rather than have operators run a product business, the objective was to have GMs with product expertise run a product business on a global scale. The results from two years of the program were that 72 percent of the participants received promotions to GM roles and 22 percent of the participants took on expat assignments as GMs in Japan and China. Despite its success, the program was cut because the investment, 50K per person for 20 people was deemed too steep. The primary reason the case couldn’t be made to continue this investment; is following a CEO leadership change, we were unable to demonstrate how this program was directly aligned with the business strategy. We didn’t monetize the value of this investment.
Here are some questions you should answer in making a strategic case for talent investment:
1. How does having internally developed “x” leaders with “y” capabilities enable the achievement of your organization’s vision and strategy? Will having leaders with these capabilities allow you to more rapidly innovate, act on opportunity and compete in new markets? Which specific strategic business objectives are you tackling?
2. How much business do the leaders you are developing impact and how much economic value can be gained? Let’s say the leader runs a $200m business. If the leader, as a result of your targeted development, is able to find cost savings and increase earnings of just 2 percent, the economic value the leader brings is $4M.
3. What is the cost to attract, hire and onboard someone into a key role? What is the cost in lost productivity? Most estimates put the cost of hire to be 1.5 to 2 times the salary for key roles.ii If you assume a key leader earns $200,000 then the minimum cost to hire is $300,000 and according to most studies, nearly half will fail within the first 18 months at a new employer.iii
4. What will it cost you in attrition, if you don’t invest in your key talent? As Dan Pink articulates in his book, Drive: The Surprising Truth about What Motivates Us, leaders need a sense of mastery, autonomy and purpose to be motivated and achieve their best. Development provides leaders the opportunity to expand their mastery and autonomy and even clarify their purpose. As Pink says, “The secret to high performance and satisfaction … is the deeply human need to direct our own lives, to learn and create new things, and to do better by ourselves and our world.”
The loss of key talent affects commitment and focus on results among team members. It has a lasting, negative effect on climate that can permeate the organization.
5. What insights are you not tapping into from these leaders by not making the investment in development? Leaders are both born and made and through practice, excellence can be achieved. By creating the right development solution, leaders are given an environment in which they can acquire new knowledge, learn new skills and practice with low risk. What new idea, innovation or perspective might you leave on the table because you didn’t invest in giving leaders the tools and resources as well as the space to learn?
With these questions answered HR executives should be able to make the case to invest $50K in the development of key talent (per example above). Between the cost to hire of about $300K and the lost potential economic value of $4M, the possibility of attrition and the resulting negative climate impact, the organization is beyond remiss for not making the investment a priority.
HR has long sought to be a business partner. The more HR professionals can influence business strategy, link their efforts directly to the strategy, and deliver thoughtful, differentiated investments that can show true value, the more likely the “business” will seek their partnership.

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Source:

Margules S. (2017 January 19). Strategic talent investment [Web blog post]. Retrieved from address https://blog.shrm.org/blog/strategic-talent-investment