Health Law Sleepers: Six Surprising Health Items That Could Disappear With ACA Repeal
Does ACA repeal have you worried? Look into this great article from Kaiser Health News about some of things that could disappear with ACA repeal by Julie Appleby and Mary Agnes Carey
The Affordable Care Act of course affected premiums and insurance purchasing. It guaranteed people with pre-existing conditions could buy health coverage and allowed children to stay on parents’ plans until age 26. But the roughly 2,000-page bill also included a host of other provisions that affect the health-related choices of nearly every American.
Some of these measures are evident every day. Some enjoy broad support, even though people often don’t always realize they spring from the statute.
In other words, the outcome of the repeal-and-replace debate could affect more than you might think, depending on exactly how the GOP congressional majority pursues its goal to do away with Obamacare.
No one knows how far the effort will reach, but here’s a sampling of sleeper provisions that could land on the cutting-room floor:
CALORIE COUNTS AT RESTAURANTS AND FAST FOOD CHAINS
Feeling hungry? The law tries to give you more information about what that burger or muffin will cost you in terms of calories, part of an effort to combat the ongoing obesity epidemic. Under the ACA, most restaurants and fast food chains with at least 20 stores must post calorie counts of their menu items. Several states, including New York, already had similar rules before the law. Although there was some pushback, the rule had industry support, possibly because posting calories was seen as less onerous than such things as taxes on sugary foods or beverages. The final rule went into effect in December after a one-year delay. One thing that is still unclear: Does simply seeing that a particular muffin has more than 400 calories cause consumers to choose carrot sticks instead? Results are mixed. One large meta-analysis done before the law went into effect didn’t show a significant reduction in calorie consumption, although the authors concluded that menu labeling is “a relatively low-cost education strategy that may lead consumers to purchase slightly fewer calories.”
PRIVACY PLEASE: WORKPLACE REQUIREMENTS FOR BREAST-FEEDING ROOMS
Breast feeding, but going back to work? The law requires employers to provide women break time to express milk for up to a year after giving birth and provide someplace — other than a bathroom — to do so in private. In addition, most health plans must offerbreastfeeding support and equipment, such as pumps, without a patient co-payment.
LIMITS ON SURPRISE MEDICAL COSTS FROM HOSPITAL EMERGENCY ROOM VISITS
If you find yourself in an emergency room, short on cash, uninsured or not sure if your insurance covers costs at that hospital, the law provides some limited assistance. If you are in a hospital that is not part of your insurer’s network, the Affordable Care Act requires all health plans to charge consumers the same co-payments or co-insurance for out-of-network emergency care as they do for hospitals within their networks. Still, the hospital could “balance bill” you for its costs — including ER care — that exceed what your insurer reimburses it.
If it’s a non-profit hospital — and about 78 percent of all hospitals are — the law requires it to post online a written financial assistance policy, spelling out whether it offers free or discounted care and the eligibility requirements for such programs. While not prescribing any particular set of eligibility requirements, the law requires hospitals to charge lower rates to patients who are eligible for their financial assistance programs. That’s compared with their gross charges, also known as chargemaster rates.
NONPROFIT HOSPITALS’ COMMUNITY HEALTH ASSESSMENTS
The health law also requires non-profit hospitals to justify the billions of dollars in tax exemptions they receive by demonstrating how they go about trying to improve the health of the community around them.
Every three years, these hospitals have to perform a community needs assessment for the area the hospital serves. They also have to develop — and update annually — strategies to meet these needs. The hospitals then must provide documentation as part of their annual reporting to the Internal Revenue Service. Failure to comply could leave them liable for a $50,000 penalty.
A WOMAN’S RIGHT TO CHOOSE … HER OB/GYN
Most insurance plans must allow women to seek care from an obstetrician/gynecologist without having to get a referral from a primary care physician. While the majority of states already had such protections in place, those laws did not apply to self-insured plans, which are often offered by large employers. The health law extended the rules to all new plans. Proponents say direct access makes it easier for women to seek not only reproductive health care, but also related screenings for such things as high blood pressure or cholesterol.
AND WHAT ABOUT THOSE THERAPY COVERAGE ASSURANCES FOR FAMILIES WHO HAVE KIDS WITH AUTISM?
Advocates for children with autism and people with degenerative diseases argued that many insurance plans did not provide care their families needed. That’s because insurers would cover rehabilitation to help people regain functions they had lost, such as walking again after a stroke, but not care needed to either gain functions patients never had, such speech therapy for a child who never learned how to talk, or to maintain a patient’s current level of function. The law requires plans to offer coverage for such treatments, dubbed habilitative care, as part of the essential health benefits in plans sold to individuals and small groups.
See the original article Here.
Source:
Appleby J., Carey M. (2017 January 12). Health law sleepers: six surprising health items that could disappear with ACA repeal [Web blog post]. Retrieved from address https://khn.org/news/health-law-sleepers-six-surprising-health-items-that-could-disappear-with-aca-repeal/?utm_campaign=KHN%3A+Daily+Health+Policy+Report&utm_source=hs_email&utm_medium=email&utm_content=40532225&_hsenc=p2ANqtz-8vl0H_K8CNgaURbqgYS5m3isu1NUGrj0FRIdsUX8JCwcifTDRV-UvKdu6lZGvB06FTyhENvPFLaOMOsIrr2IBVBTNWQg&_hsmi=40532225
FIVE TRENDS IN TALENT
Do you know what is needed to attract new talent to your company? Here's a great article from SHRM about 5 trends that new hires are looking for in 2017 by Shonna Waters & Alex Alonso
See the original article Here.
Source:
Waters S., Alonso A. (2017 January 5). Five trends in talent [Web blog post]. Retrieved from address https://blog.shrm.org/blog/five-trends-in-talent
Corporate pension plan funding levels flatline in 2016
Great article from Employee Benefits Advisor about Corporate pension plan funding by Phil Albinus
The stock market may have soared after the news that Donald Trump won the White House and plans to cut taxes and regulations, but the pension funded status of the nation’s largest corporate plan sponsors remains stuck at 80%. This figure is roughly unchanged for 2014 and 2015 when the status rates were 81%, according to a recent analysis conducted by Willis Towers Watson.
In an analysis of 410 Fortune 1000 companies that sponsor U.S. defined benefit pension plans, Willis Towers Watson found that the pension deficit is projected to have increased $17 billion to $325 billion at the end of 2016, compared to a $308 billion deficit at the end of 2015.
“On the face of it, [the 2016 figures of 80%] looks pretty boring. For the last three years the funding levels were measured around 80% and it doesn’t look that interesting,” says Alan Glickstein, senior retirement consultant for WTW. “But one thing to note is that 80% is not 100%. To be that stagnant and that far away from 100% is not a good thing.”
In fact, 2016’s tentative figures, which have yet to be finalized, could have been worse.
According to Glickstein, the 2016 figure hides “some pretty dramatic movements” that occurred during the unpredictable election year. “Prior to the election and due to the significant changes to equities and other asset values after the election, this number would have been more like 75%” if Trump had not won, he says.
“That is the interesting story because we haven’t been as low as 75% really ever in the last 20 years,” Glickstein says.
Fortune 1000 companies contributed $35 billion to their pension plans in 2016, according to the WTW research. This was an increase compared to the $31 billion employers contributed to their plans in 2015 but still beneath the contribution levels from previous years. “Employer contributions have been declining steadily for the last several years partly due to legislated funding relief,” according to Willis Towers Watson.
Despite these dips, total pension obligations increased from $1.61 trillion to $1.64 trillion.
Why are U.S. companies slow to fund their own pension plans, especially when in 2006 and 2007 the self-funded levels were 99% and 106% respectively?
“In prior years, plan sponsors put lots of extra contributions into the plans to help pay off the deficit, and investment returns have been up and the equities the plans have invested in have helped with that we haven’t been able to move this up above 80%,” Glickstein says.
That said, many American corporations are sitting on significant amounts of cash but appear not to be putting money into their retirement plans.
“We have seen companies contributing more to the plans in the past, but each plan is different and each corporation has their own situation. Either a company is cash rich or it is not,” Glickstein says.
“With interest rates being low and the deductions company get for their contributions, for a lot of plan sponsors it has been an easy decision to put a lot of money into the plan,” he says.
“And there are plenty of rewards for keeping premiums down by increasing contributions.”
Further, a new Congress and president could have an impact on corporate contributions especially if new corporate tax codes are enacted.
The broad initiatives of a new administration in the executive branch and legislative branch will have an impact, says Glickstein.
“With tax reforms, the general thrust for corporations and individuals is we are going to lower the rates and broaden the underlying tax base. So for pensions, the underlying tax rates for pensions is probably going to be lower and if [Congress gets] tax reforms done and they lower the corporate rate in 2017, and even make it retroactive,” Glickstein speculates. He predicts that some plan sponsors will want to contribute much more to the 2016 tax year in order to qualify for the deductions at the higher rates while they still can.
“There is a short-term opportunity potentially to put more money in now and capture the higher deduction once tax reform kicks in,” says Glickstein. “And with an 80% funded status, there is plenty of room to put more money in than with an overfunded plan.”
See the original article Here.
Source:
Albinus P. (2017 January 9). Corporate pension plan funding levels flatline in 2016[Web blog post]. Retrieved from address https://www.employeebenefitadviser.com/news/corporate-pension-plan-funding-levels-flat-line-in-2016?feed=00000152-1377-d1cc-a5fa-7fff0c920000
Disconnect between employers, employees over wellness, health plan satisfaction
Check out this great article from Employee Benefits Adviser about the disconnect between employees and employers about their company's wellness programs by Cort Olsen
More than 1,500 employer decision-makers surveyed about the future of healthcare say wellness programs within companies continue to show positive growth among employers and employees alike. However, the study by Transamerica Center for Health Studies also found a strong disconnect in communication between employers and employees regarding healthcare and benefit satisfaction and the commitment from employers to maintain a healthy workspace.
At least 28% of employers have implemented a wellness program for their employees in the past 12 months — a steady increase from 23% in 2014 and 25% in 2015. About four in five companies report their wellness programs have positively impacted workers’ health and productivity, and about seven in 10 have seen a positive impact on company healthcare costs.
More than half of the employers surveyed (55%) say they offer wellness programs to their staff, yet some employees seemed to be unaware that their company offers these programs. Of the 55% of employers who say they offer a wellness program, only 36% of employees with employer coverage say they work for an employer who offers a wellness program.
Employer versus employee perspective
This miscommunication may also contribute to the level of commitment employees think their employer has in maintaining a wellness program within the workplace. While 80% of employers say leadership is committed to improving the health of their employees, only one-third of employees say they agree with that statement.
When it comes to overall healthcare satisfaction there is a similar disconnect, with 94% of employers saying employees are satisfied with the health insurance plan their company offers, while only 79% of employees say they are satisfied with their health plan.
In addition, 90% of employers say employees are satisfied with the healthcare benefits other than health insurance, but only 79% of employees say they are satisfied.
However, while employers and employees may not share the same amount of satisfaction in their healthcare offerings, many companies are making the effort to reduce the cost of their healthcare for their staff.
At least 41% of companies have taken measures to reduce costs, while 71% of companies have taken positive measures in the last 12 months. The percentage of midsize businesses reporting to provide insurance for part-time employees has increased significantly since July 2013 from 13% to 21%.
Still, lack of communication continues over cost concerns as well. While about four in five employers feel their company is concerned about the affordability of health insurance and healthcare expenses, just over half of employees feel the same — even after employers said cost concerns would not be felt by employees.
See the original article Here.
Source:
Olsen C. (2017 January 05). Disconnect between employers, employees over wellness, health plan satisfaction[Web blog post]. Retrieved from address https://www.employeebenefitadviser.com/news/disconnect-between-employers-employees-over-wellness-health-plan-satisfaction?brief=00000152-1443-d1cc-a5fa-7cfba3c60000
Employees putting billions more than usual in their 401(k)s
Interesting article from BenefitsPro about employee's increased input into their 401(k)s by Ben Steverman
(Bloomberg) -- Saving for retirement requires making sacrifices now so your future self can afford to stop working later. Someday. Maybe.
It’s not news that Americans aren’t saving enough. The typical baby boomer, whose generation is just starting to retire, has a median of $147,000 in all of his retirement accounts, according to the Transamerica Center for Retirement Studies.
And if you think that’s depressing, try this on: 1 in 3 private sector workers don’t even have a retirement plan through their job.
But the new year brings with it some good news: If people do have a 401(k) plan through their employer, there’s data showing them choosing to set aside more for their later years.
On average, workers in 2015 put 6.8 percent of their salaries into 401(k) and profit-sharing plans, according to a recent survey of more than 600 plans. That’s up from 6.2 percent in 2010, the Plan Sponsor Council of America found.
An increase in retirement savings of 0.6 percentage points might not sound like much, but it represents a 10 percent rise in the amount flowing into those plans over just five years, or billions of dollars. About $7 trillion is already invested in 401(k) and other defined contribution plans, according to the Investment Company Institute.
If Americans keep inching up their contribution rate, they could end up saving trillions of dollars more. Workers in these plans are even starting to meet the savings recommendations of retirement experts, who suggest setting aside 10 percent to 15 percent of your salary, including any employer contribution, over a career.
While workers are saving more, companies have held their financial contributions steady—at least over the past few years. Employers pitched in 4.7 percent of payroll in 2015, the same as in 2013 and 2014. Even so, it’s still more than a point above their contribution rates in the aftermath of the Great Recession.
One reason workers participating in these plans are probably saving more: They’re being signed up automatically—no extra paperwork required. Almost 58 percent of plans surveyed make their sign-up process automatic, requiring employees to take action only if they don’t want to save.
Automatic enrollment can make a big difference. In such plans, 89 percent of workers are making contributions, the survey finds, while 75 percent make 401(k) contributions under plans without auto-enrollment. Auto-enrolled employees save more, 7.2 percent of their salaries vs. 6.3 percent for those who weren’t auto-enrolled.
Companies are also automatically hiking worker contribution rates over time, a feature called “auto-escalation” that’s still far less common than auto-enrollment. Less than a quarter of plans auto-escalate all participants, while 16 percent boost contributions only for workers who are deemed to be not saving enough.
A key appeal of automatic 401(k) plans is that they don’t require participating workers to be investing experts. Unless employees choose otherwise, their money is automatically put in a recommended investment.
And, at more and more 401(k) and profit-sharing plans, this takes the form of a target-date fund, a diversified mix of investments chosen based on a participant’s age or years until retirement. Two-thirds of plans offer target-date funds, the survey found, double the number in 2006.
The share of workers’ assets in target-date funds is up fivefold as a result.
A final piece of good news for workers is that they’re keeping more of every dollar they earn in a 401(k) account. Fees on 401(k) plans are falling, according to a recent analysis released by BrightScope and the Investment Company Institute.
The total cost of running a 401(k) plan is down 17 percent since 2009, to 0.39 percent of plan assets in 2014. The cost of the mutual funds inside 401(k)s has dropped even faster, by 28 percent to an annual expense ratio of 0.53 percent in 2015.
See the original article Here.
Source:
Steverman B. (2017 January 5). Employees putting billions more than usual in their 401(k)s [Web blog post]. Retrieved from address https://www.benefitspro.com/2017/01/05/employees-putting-billions-more-than-usual-in-thei?ref=hp-news&page_all=1
Top 7 401(k) questions employees may have
Interesting article from BenefitsPro about some of the questions your employees will ask about 401(k)s by Marlene Y. Satter
At the start of a new year, lots of folks are thinking about resolutions.
And, if they’re also thinking about saving for retirement, they may have realized they don’t know all that they should about their retirement plan—or they may simply have decided that they need to know more.
If that’s the case, they’ll have questions about their 401(k) plans.
And regardless of what kind of 401(k) education you or your plan provider may furnish, you’ll likely be hit with inquiries about various aspects of the company plan.
Here are the top 7 questions you may get from workers this year.
7. How do I manage my investments?
Employees will want to know whether there are online tools to track investments, access statements and change their portfolio holdings.
They’ll also want to know about educational resources, whether online or in group or individual sessions, so that they can do the best they can. If you don’t already offer access to a financial advisor to help them better understand what they need to do, this could be a potential plan upgrade—particularly since many people prefer interacting with a human being to relying on online tools, especially for educational purposes.
6. What kind of investments are available?
Particularly if they’re trying to educate themselves better on how to make their 401(k) investments perform at peak efficiency, employees will want to know what they’re putting their money into.
Which mutual funds does the plan use? What other options are available? Are there alternative investments in the plan? Managed accounts? Bonds? Individual stocks? Money market funds? Are there plenty of options available, so that the portfolio is sufficiently diversified?
And if they don’t like the sound of the 401(k)’s options, they might ask you about providing a Roth 401(k) instead.
5. How high are the fees—and can they be lowered?
Savvy employees will be concerned about the fees involved in the various investments in the plan. Even more savvy ones might push you to consider lower-fee investments, such as Class R6 shares rather than Class A and target-date funds, which have preset portfolios and should be cheaper.
They’ll probably also ask about the presence or absence of index funds, and question whether the plan provider engages in revenue sharing or provides institutional pricing on all funds.
4. When and how can I withdraw money from the plan?
In case of emergency—a death in the family, a serious illness or perhaps a less depressing need, such as a home purchase or the kids’ college education—employees might need to get their hands on some of their 401(k) funds. Does your plan allow that?
And if so, how? Is it a difficult process? Are only hardship loans allowed? How long does it take to get the money? Can employees continue to contribute to the plan after they take a withdrawal?
3. What’s the employer matching contribution?
Employees will want to know, if they don’t already, how much you’re going to kick in in matching funds when they start contributing to the plan.
Do you match 50 cents, for instance, per dollar up to a certain percentage of the employee’s salary? Say, 3 percent or 6 percent? Or do you do a dollar-for-dollar match up to whatever your limit is? Or perhaps you have a dollar limit rather than a percentage.
2. When am I vested?
Employees—particularly millennials, who tend to move from job to job with increasing frequency—will probably want to know how quickly they’ll be able to keep any employer contributions.
They probably already know that whatever they themselves contribute to a plan is theirs to take whenever they leave for a new job, but since vesting rules can vary widely from company to company, they’ll want to know whether employer contributions vest at 5, 10, 25 or 50 percent per year, or at 100 percent after a certain number of years.
1. What are the eligibility requirements?
New employees in particular will want to find out about this, but existing employees who perhaps hadn’t signed up in the past may also be checking on whether they work enough hours per week (for part-timers) or have been with the company long enough to start contributing.
Make sure that employees know what’s required for them to be able to participate—and if you don’t already have it, you might want to consider adding auto enrollment as a feature next time you modify the plan.
See the original article Here.
Source:
Satter M. (2017 January 03). Top 7 401(k) questions employees may have [Web blog post]. Retrieved from address https://www.benefitspro.com/2017/01/03/top-7-401k-questions-employees-may-have?ref=hp-news&page_all=1
Financial wellness: Here’s what employees want, need in 2017
Great article from our partner, United Benefit Advisors (UBA) by
Recent research into individuals’ financial resolutions for 2017 can tell you whether your financial wellness initiatives are giving employees what they want. It can also tell you whether to expect employees to increase their retirement contributions next year.
Personal finance company LendEDU recently asked 1,001 Americans about their financial goals for 2017, as well as what their biggest concerns are. The results were published in LendEDU’s “Financial Resolution Survey & Report 2017,” which can help employers determine if their financial programs are on point.
Here are some of the more interesting Q&A’s from the research:
What’s your most important financial resolution in 2017?
- Save more money — 52.85% of respondents selected this
- Pay off debt — 35.56%
- Spend less money — 11.59%
Takeaway for employers: Improving savings should be front and center in any financial wellness strategy.
What’s your top financial resolution?
- Make and stick to a budget — 21.38%
- Save for a large purchase like a down payment, household upgrade, or car, etc. — 19.28%
- Pay down credit card debt — 18.88%
- Place money aside for an emergency — 16.58%
- Save for retirement — 13.69%
- Pay down student loan debt — 7.29%
- Save for college — 2.90%
Takeaway for employers: Employees need the most help creating a budget they can stick to.
What’s your top financial concern?
- Unexpected expenses — 53.25%
- Healthcare costs — 23.98%
- Higher interest rates — 9.69%
- The labor market — 7.79%
- Stock market fluctuations — 5.29%
Takeaway for employers: Helping employees manage healthcare costs can be a key add-on to any financial education program.
Do you think you’re better off financially in 2017 than in 2016?
- Yes — 78.32%
- No — 21.68%
Takeaway for employers: Employees’ financial state of mind is on the upswing, which is good. But it could make increasing participation in wellness initiatives more challenging.
Do you make financial resolutions with your spouse or significant other?
- Yes — 84.83%
- No — 15.17%
Takeaway for employers: When it comes to finances, very few people go it alone, so invite spouses to be a part of your wellness offerings.
What would make you stick to a financial resolution?
- Having a reward for reaching the goal — 37.56%
- Segmenting a longer term goal into smaller bit sized pieces — 20.08%
- Technology that helps you save money or monitor goals in real-time — 19.38%
- The encouragement of family and friends — 13.99%
- Having a consequence for not reaching the goal — 8.99%
Takeaway for employers: Incremental rewards and incentives, can help drive participation and success in 2017 financial wellness initiatives.
Do you think you’ll increase your retirement savings contributions this year?
- Yes — 63.24%
- No — 36.76%
Takeaway for employers: This could be a good year to really push employees to bump up retirement plan contributions.
See the original article Here.
Source:
Author (Date). Title [Web blog post]. Retrieved from address https://www.hrmorning.com/financial-wellness-heres-what-employees-want-need-in-2017/
4 Things Your Company Should Consider as New Overtime Rules are Put on Hold
Great article from SHRM by Sushma Tripathi
The U.S. Department of Labor (DOL) is fighting a court ruling that put new FLSA (Fair Labor Standards Act) overtime regulations on hold. Last month, a district court in Texas issued a nationwide preliminary injunction blocking the DOL’s final rule that sought to raise the required salary level to qualify for white collar exemptions.
Although the DOL now seeks to lift the injunction, the overtime changes that were scheduled to take effect December 1 remain on hold for the time being.
Several possibilities exist as to what will happen next. The DOL could file a motion to stay, or suspend, the injunction during the appeals process. If the court were to grant such a motion, this would cause the rule to take effect. If no motion to stay is filed, or if such a motion is denied, the injunction will stand during the appeals process.
To add a further layer of complication, the DOL filed a motion for an expedited appeal on December 2, which motion was granted on December 8, and the DOL’s opening brief will be due on December 16, 2016. Further, the states’ brief in support of the district court’s injunction will be due on January 17, 2017 and the DOL’s reply brief will be due on January 31, 2017. We will not have a decision on the expedited appeal until sometime in February 2017. While all this plays out, it’s natural to ask: What should businesses be doing?
Here a few things to consider:
- Rapidly assess what actions to take and what actions are possible. Many employers spent months preparing for the FLSA changes, identifying workers affected by the final regulations, and determining whether to increase their salaries to comply or reclassify them as non-exempt employees, and communicating those changes to their employees. If an employer already notified an employee of a salary increase effective December 1 or already made the change, it may be too difficult to reverse that change and communicate that the change won’t occur. You should confer with your counsel and consider whether it’s better to go ahead with your initial plans and stay the course, especially if your payroll team already processed the change.
- Start tracking time now. The court may side with the DOL and the proposed regulations could be reinstated retroactively to the original December 1 effective date. For that reason, employers that decide not to take action to comply with the new regulations while the litigation and appeal are pending should consider directing reclassified employees to track time. This will ensure that, in the event the final rule is later upheld and overtime becomes due retroactively, employers will have an accurate record of hours worked.
- Continue to evaluate the FLSA status of employees. While the rule is delayed, employers should continue to evaluate the FLSA status of their employees by reviewing job duties and descriptions to ensure that employees are properly classified. Whether or not the rule is upheld, employers remain subject to FLSA requirements that dictate proper job classification and payment methods. Take this opportunity to make sure employees’ duties match their job descriptions. Following the recession in 2008, in many workplaces, tasks were redistributed after layoffs and many employees took on additional duties that were never added to into their job descriptions. These employees may need to be reclassified under existing FLSA regulations.
- Be transparent in communicating changes. In deciding how to proceed, employers are strongly advised to consult with internal or external legal counsel and other experts to discuss options available before making and communicating decisions related to this latest development. Employee relations and financial implications should be considered. Employers should also keep in mind that applicable state laws may require advance notice of any changes in pay. State laws may also govern the overtime exempt status of employees. Remember to convey to employees that it’s the law that’s causing potential changes and not your company. Otherwise, morale can be impacted if employees feel they are being demoted by being reclassified.
While we have no crystal ball and cannot predict what a Trump administration will do, one can guess that it might direct the DOL to abandon the appeal, because President-elect Trump previously stated that he thought that small businesses should be exempt from the proposed increases in minimum salary for the white-collar exemptions. The Trump administration might prefer to take a more gradual approach to raising the minimum salary levels, instead of the almost 100 percent increase contemplated by the DOL’s rule, or may prefer no increase at all. So, our advice to employers is to take this time to make sure you’re in compliance with existing wage and hour laws and ensure you have employees classified properly. There’s no time like the present.
See the original article Here.
Source:
Tripathi S. (2016 December 14). 4 things your company should consider as new overtime rules are put on hold[Web blog post]. Retrieved from address https://blog.shrm.org/blog/4-things-your-company-should-consider-as-new-overtime-rules-are-put-on-hold
5 employee benefits trends for 2017
Interesting article about emerging trends in employee benefits for 2017 by Marlene Satter
As the old year ticks down toward a new year filled with a drastic change in Washington that will no doubt have plenty of ripple effects throughout the country, the employee benefits sector will also be in for plenty of changes.
Based on its 14th Annual U.S. Employee Benefit Trends Study and other industry indicators, MetLife has prognosticated five trends it believes will be key in 2017.
Employers might be surprised by some, and are probably already wrestling with others—but here’s what to watch for in the year to come.
5. Customization.
If there’s one thing that’s clear in benefits, it’s that everybody is not happy with the same cookie-cutter benefit package.
And as the job market improves and employers have to work harder to attract and retain top talent, one way to do that is to provide benefits that satisfy needs that might be a little out of the ordinary. Employers that can satisfy their employees’ diverse needs, the study found, “will emerge clear winners in the talent war.”
What’s more, employees are becoming more focused on specific benefits.
The study revealed that 28 percent of all generations agree that critical illness insurance is a must-have, but it doesn’t stop there—different generations want different things. For instance, about 14 percent of millennial employees consider pet insurance a must-have benefit.
And don’t forget about benefits communications. No rubber-stamp information wanted here—employees want communications about their benefits customized to them.
4. Enrollment.
Here’s an area where employees are not happy—so change will have to come if the situation is to improve.
The study found that only about a third of employees say that their company’s benefit communications are easy to understand—and that leads many to assume they don’t need many of the benefits they’re offered. That’s definitely not a good situation.
The good news: 71 percent of employers say that by working with an enrollment firm they were able to improve communication, including explaining and clarifying nonmedical benefits.
For employers to stay ahead of the curve, they’ll have to join the movement to better educate their employees on enrollment.
3. Financial stress.
The biggest single source of stress for employees is financial stress, which weighs not only on employees but on employers’ bottom lines as well. And that situation screams to be addressed.
While financial wellness programs help employees to better manage their personal finance situations, cutting stress as a result, employers so far haven’t jumped on the bandwagon.
In fact, some of the few who offered them have quit doing so, with just 31 percent of employers having provided financial wellness programs this year. That’s down from 39 percent last year, according to the study.
If employers wise up and provide help with financial wellness, employees will sleep better at night and work better during the day. And so will their employers.
2. Data security.
Whether it’s hackers or phishers, more threats to data security arise every day—not just for consumers but for companies and their employees.
Losses from hacked, hijacked or ransomed data can drive a company out of business, but employers also have to be as protective of their employees’ data as they are of their customers’.
One way to do that, the study pointed out, is to shore up the digital support chain by moving to a single benefits carrier; that can help to limit the exposure of employee data.
With the average cost of a large-scale data breach sitting at approximately $4 million, according to a study conducted by the Ponemon Institute, it’s a smart investment.
1. Legal services.
If you’re looking for a new lure to attract top talent, this could be your ticket. MetLife has characterized legal services as the “best-kept secret of benefits.” SHRM adds that it has doubled in popularity over the past 10 years.
At some point, the study pointed out, just about everyone is going to have to deal with a legal issue. Major life events, such as buying a home, getting married, having a baby or caring for an aging parent, all have important legal implications.
According to MetLife insights, “For about $20 a month, a legal plan can help,” adding that the benefit is of particular importance to millennials. Of adults that are offered a legal plan through work, a Harris poll found that nearly 70 percent of those aged 21–34 are enrolled.
See the original article Here.
Source:
Satter M. (2016 December 7). 5 employee benefits trends for 2017[Web blog post]. Retrieved from address https://www.benefitspro.com/2016/12/07/5-employee-benefits-trends-for-2017?page_all=1
3 reasons benefits are a game-changer for attracting talent
Helpful tips from Employee Benefit Adviser about attracting new talent by Aldor Delp
Unemployment is hovering around 5%, November marked 73 continuous months of job gains and wage growth is picking up. All indications seem to suggest that employers have positions to fill, which may also mean that workers now have leverage, confidence and options. This is good news for job candidates. But for employers vying for fresh talent, it means the attributes of a company need to be that much more enticing. It also makes me think that a comprehensive benefits package may tip the scales for a candidate who’s considering multiple offers. To put it simply: Benefits can be the game changer.
It’s true that a traditional comprehensive benefit package has always been a successful recruitment element for companies. But given the wider array of benefits employers now can offer, today’s companies can use those elements to differentiate themselves from the competition.
From an employer’s perspective, competitive benefits don’t just help with recruitment but can also bolster retention. While strong benefit packages can potentially become expensive depending on the options they include, replacing an employee can be potentially even more costly and time consuming if a company experiences regular churn. With an investment in more appealing benefits packages, an employer may be able to mitigate the cost, time and effort of turnover and recruitment.
While healthy, stocked kitchens, nap areas and ping pong tables are perks that now reach far beyond the tech industry, many companies are building up three additional benefits areas that can truly change the game.
1) Financial wellness programs. Given the recent recession, retirement still is a growing concern for many American workers. A recent study showed that over the past 12 months, 38% of workers considered delaying retirement beyond the original age they intended and 52% said they will delay retirement because they “need to save more.” When these financial worries make their way into the workplace, employers should take notice. Consider a study from PricewaterhouseCoopers that showed that employees spend an average of three hours a week at work dealing with their finances. That’s fairly significant.
By offering financial wellness programs, employers can combat this anxiety and increase efficiency, while providing a sought-after benefit that many companies aren’t yet offering. Ninety-two percent of employer-respondents in another ADP study confirmed interest in providing their workforce with information about retirement planning basics, and 84% said the same of retirement income planning. Even if employers would like to provide these programs, few offer them, citing several existing challenges that stand in the way, such as a need to focus on other aspects of their business (27%) or not enough resources (15%). Providing financial wellness programs can be an added reward that may help a potential employee lean in your favor.
2) Strong internal training. Providing employees with training and development opportunities can promote retention and commitment. Regardless of the number of opportunities for career development, you can still help employees refine skills and increase knowledge that will serve them in the future. American workers want to learn to hone their skills. In fact, 84% of Americans are excited to use technology to learn in real-time, according to ADP’s Evolution of Work study. This is a benefit that not only can provide employee enrichment, it can also strengthen the talent pipeline to management positions.
However, internal training programs are not what they used to be. According to ADP’s recent report, Strategic Drift: How HR Plans for Change, corporate training budgets fell by 20% between 2000 and 2008. Seventy-six percent of executives see the market for skilled employees tightening and 75% expect high turnover among millennials. Reduced corporate training budgets have perpetuated a cycle of high employee turnover. So, if your organization has strong training programs, it’s likely to stand out from competitors. It may be worth considering internal and external training opportunities, mentoring, job shadowing, cross-training and professional development classes.
3) Workplace flexibility. Be open to the idea that it may be more feasible for some workers to telecommute and work from home for a portion of the week. Workplace flexibility is attractive for many employees and it can help reduce the number of unscheduled absences. Flexible work arrangements — such as the option to work from home, alternative start and stop times, compressed work weeks, or Summer Fridays — can help encourage workers to use their time more efficiently, and underscore a corporate culture that stresses balance, mindfulness and trust.
As job candidates and existing employees take a more holistic view of their benefits, relevant, supportive and flexible programs can be the game changer for them. The right mix of direct compensation and indirect benefits may be the difference between onboarding that “dream” candidate, retaining a top performer, or elongating the search for that precious needle in the talent haystack.
See the original article Here.
Source:
Delp A. (2016 December 12). 3 reasons benefits are a game-changer for attracting talent[Web blog post]. Retrieved from address https://www.employeebenefitadviser.com/opinion/3-reasons-benefits-are-a-game-changer-for-attracting-talent