What happens on Oct. 2?
Originally posted September 18, 2013 on https://ebn.benefitnews.com
Will you be ready for the day after the Affordable Care Act’s public exchanges go live?
At 2 p.m. ET on Oct. 2, EBN and EBA will offer a web seminar on issues relating to ACA implementation and what they mean for employers – whether or not they plan having their workers participate in ACA marketplaces. Hosted by SourceMedia’s Employee Benefit News Group Editorial Director David Albertson, the webinar will include speakers such as Rodger Bayne, president of the Benefit Indemnity Corporation.
Topics of the hour-long, real-time seminar are set to include updates on the functionality of state and federal exchanges, the mandate that employers educate on health care marketplaces, the union push for qualified health plans and enrollment in individual and small business exchanges. The web event is designed for businesses of all sizes, as well as the brokers, advisers and third parties who consult and assist them.
Americans at large remain demonstrably confused over ACA and its applications; wise plan sponsors will use benefits communication to stay ahead of the curve on employee inquiries. Any further delays of ACA mandates will also be discussed.
HHS delays SHOP Web enrollment launch
Originally posted September 26, 2013 by Allison Bell on https://www.lifehealthpro.com
The U.S. Department of Health Human Services (HHS) is pushing the launch of the federal small-group public exchange Web enrollment system back to November.
The delay in the Small Business Health Options Program (SHOP) online enrollment system start affects only the states in which HHS will be running federally facilitated exchanges (FFEs).
States that are running their own state-based exchanges can still get their Web-based SHOP enrollment systems going Oct. 1, the official launch date for the new Patient Protection and Affordable Care Act (PPACA) public health insurance exchange system.
The delay will also have no direct effect on the FFE individual exchange program.
Reuters is reporting that Obama administration officials told it that small employers in FFE states will still be able to enroll in SHOP plans Oct. 1 by filling out paper forms or calling an FFE call center.
John Greene, a vice president at the National Association of Health Underwriters, said his group has learned that agents and brokers will be able to sell SHOP plans Oct. 1.
“It won’t be an electronic train,” Greene said. “It will be a little horse and buggy. But they can still get it done.”
Having the ability to start the SHOP enrollment process before the federal exchange Web enrollment system could help brokers get an edge over that system in the SHOP market.
The initial exchange enrollment rules call for employers to make payments by Dec. 15 to have coverage take effect Jan. 1.
The SHOP will be open to employers with 50 or fewer full-time employees. Some small employers that sign up for coverage through the SHOP and have relatively modestly paid employees can qualify for temporary small-group health insurance tax credits. The Congressional Budget Office has predicted that the SHOP program will be much smaller than the individual exchange program and may attract employers with only a few million employees.
The initial exchange enrollment rules call for employers to make payments by Dec. 15 to have coverage take effect Jan. 1.
The SHOP will be open to employers with 50 or fewer full-time employees. Some small employers that sign up for coverage through the SHOP and have relatively modestly paid employees can qualify for temporary small-group health insurance tax credits.
HHS is saying that it will open a call center aimed specifically at small employers Oct. 1. Employers can call the center at (800) 706-7893 from 9 a.m. to 7 p.m. EST.
HHS also is working with the Small Business Administration to organize SHOP webinars.
About 40,000 agents and brokers have been trained to sell SHOP coverage, HHS says.
How the Affordable Care Act affects your 2013 tax returns
Originally posted September 16, 2013 by Roger Prince on https://www.mainebiz.biz
As Affordable Care Act deadlines approach, most of the discussion heard on the street concerns the individual health insurance mandate and the expected opening of the state and federal insurance marketplaces this fall. Lost in the shuffle are the tax increases related to the ACA. Most of these changes impact high earners, but thresholds differ depending upon the tax provision in question. For anyone in the affected income categories — and there are many in Maine — the increases are significant.
Which taxpayers will be affected?
The accompanying chart outlines some of the important tax increases imposed as a result of the ACA and more recent legislation. The increases generally affect single filers with an adjusted gross income (AGI) above $200,000 and married couples filing jointly above $250,000. Some of the tax increases don't kick in until single AGI hits $400,000 and married filing jointly AGI hits $450,000.
How to mitigate the impact
As with any increase in marginal tax rates, a focus on income deferral and upfront tax planning can help soften the blow by reducing the amount of income that qualifies for the new tax rates. There are a number of strategies for income deferral, some of them employer-initiated and some handled by the individual. For example, employers might decide to redesign their 401(k) or 403(b) plans to provide for greater employer non-elective contributions (such as profit-sharing allocations) for certain types or groups of employees. A company might also decide to offer deferred compensation as part of an incentive program using so-called "synthetic" equity tools such as Phantom Stock or Stock Appreciation Rights. In these forms of compensation, the benefit is tied in various ways to the value of hypothetical shares of stock set to be paid out on a specified later date.
Individuals can defer or eliminate taxes in a higher-tax environment with various retirement savings strategies as well as tax-effective investment strategies. Individuals should get advice from both investment advisers and tax professionals to make sure their investment strategies coincide with a prudent tax strategy. The key is to be sure that the current income and investment structure maximizes the after-tax return.
Changes in the medical expense deduction
Regardless of income level, the unreimbursed medical expense deduction will now be available only for those medical expenses in excess of 10% of AGI, compared to 7.5% before. There is a temporary exemption from this requirement for individuals ages 65 and older and their spouses from 2013 through 2016. Individuals and their spouses who are 65 years or older are still allowed to deduct unreimbursed medical care expenses that exceed 7.5% of their AGI.
Other ACA steps
Employers have other compliance steps and opportunities under the ACA for this tax year. Among them:
- Employers that have employees who earn more than $200,000 will have to look at the potential for additional Medicare withholding.
- Employers that issued 250 or more W-2 forms in 2012 must report the cost of employer-sponsored health coverage for 2013 on the 2013 W-2 forms.
- Small employers (those with 25 or fewer full-time equivalent employees) that offer group health insurance might be eligible for the small business health care tax credit. The credit can be as much as 35% of employer premiums (25% for not-for-profits.) The maximum credit will increase to 50% in 2014 (35% for not-for-profits.) The credit is only available if the employer is paying at least 50% of the total premiums.
As always, everyone's particular tax situation is different. It is safe to say that tax planning for 2013 and thereafter will be more important than ever given the potential loss of tax adjustments and higher marginal tax rates imposed by the ACA and more recent legislation.
HHS releases federal exchange rates
Originally posted by Allison Bell on September 25, 2013 on https://www.benefitspro.com
With the public exchanges under the Patient Protection and Affordable Care Act preparing to open their phone lines and their Web enrollment sites Tuesday, the Obama administration is getting closer to revealing what federal exchange plans might actually cost.
A health policy office at the U.S. Department of Health and Human Services on Wednesday released a report showing what the average starting price for individual bronze, silver, gold and catastrophic exchange coverage will be for a 27-year-old in each state in which HHS will be running a "federally facilitated exchange."
The report also shows what the starting price for each level of individual coverage will be in the biggest city in each FFE state; what a 27-year-old individual coverage buyer with an annual income of $25,000 and access to exchange tax credits would pay for the lowest-cost coverage out of pocket; and what a family of four with an annual income of $50,000 would payout-of-pocket if it did or did not have access to the tax credits.
In Texas, for example, the average cost of the cheapest bronze coverage available to a 27-year-old would be $139 per month. The average cost of the cheapest gold coverage available would be $225 per month.
In Houston, the state's largest city, bronze coverage for the 27-year-old would start at $138 per month.
A look at medically underwritten 2013 rates available from eHealthInsurance.com for a 27-year-old who lives in Houston suggests that typical carriers there would now charge that consumer about $100 to $300 for coverage per month, with a majority charging $100 to $200 per month.
The family of four might have to pay $727 per month for silver coverage if it had no tax credits. Tax credits could cut the monthly cost of the coverage to $282.
Vermont posted preliminary exchange rates in April, and State Refor(u)m has posted a map showing that 27 states and the District of Columbia had at least posted preliminary rates for their state-based or federally facilitated exchanges as of Monday.
HHS — the parent of the Centers for Medicare & Medicaid Services, the agency running the exchanges — has repeatedly postponed the release date for FFE rate information without explaining why.
Some states have used state public records laws to justify releasing FFE exchange plan information on their own.
Other states, including Texas, have treated the FFE plan rates as confidential information.
HHS officials said the cost of the "second lowest cost silver plan" in the District of Columbia and 47 states is 16 percent lower than what HHS had expected, based on Congressional Budget Office projections.
HHS Secretary Kathleen Sebelius said in a statement that high prices have shut many consumers out of the health insurance market in the past.
"We excited to see that rates in the marketplace are even lower than originally projected," Sebelius said.
Thousands of California injury claims made by professional athletes
Originally posted Ken Bensinger on September 25, 2013 on https://www.latimes.com
The National Football League’s increasingly visible injury legacy has become a topic of national debate, one that threatens to cast a lasting shadow over the country’s most popular, and profitable, sport.
Far less attention has been paid to the physical woes of other athletes, but a review of injury filings in California suggests that professional athletes of all stripes walk away from their sports with nagging and often permanent injuries.
Over the past two decades, more than 2,500 claims have been filed by former baseball, basketball, hockey and soccer players against their former teams in California’s workers’ compensation system.
In the past six years, more than 940 of them -- among them stars such as two-time baseball most valuable player Juan Gonzalez and basketball legend Kareem Abdul-Jabbar -- have made filings alleging serious brain and head injuries.
The claims were isolated as part of a Los Angeles Times analysis of more than 3 million filings made to the California Division of Workers’ Compensation. Last month, The Times published a searchable database of claims by football players, and now it's being updated will all other major team sports.
Database: workers' comp claims by baseball players
Database: workers' comp claims by basketball players
Database: workers' comp claims by hockey players
Database: workers' comp claims by soccer players
Database: workers' comp claims by women's basketball players
Although the total number of claims from all other sports combined is significantly smaller than those made by football players, which number nearly 5,000, the data are a clear indication of the lasting toll professional sports leave on all athletes.
They also help explain why Major League Baseball, the National Hockey League, the National Basketball Assn., the Women’s National Basketball Assn. and Major League Soccer joined the NFL in a push to pass legislation in California that would seriously restrict such claims in the future.
That bill, AB 1309, easily passed the Legislature this month and is now on Gov. Jerry Brown’s desk. If he signs it into law, it would preclude all athletes who played for non-California teams, as well as many California athletes, from making claims for the most serious types of injuries, incurred over time and known as cumulative trauma.
The leagues, as well as their insurers, say the claims should not be filed in California. However, the players unions in each sport retort that such claims are generally not permitted in other states due to narrow definitions of cumulative trauma or expired statutes of limitations.
Organized labor worries that the measure potentially opens the door for future legislation that could deprive workers in other industries of their ability to file here. Because teams and their insurers pay the entirety of costs of successful claims without a dime of taxpayer money, unions argue that the bill would amount to a huge handout to billionaire owners of professional teams.
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Unlike civil lawsuits, which workers cannot file against their employers for workplace injuries, workers’ compensation awards are strictly limited in size and scope and may include lifetime medical care. Still, spread across thousands of injured players, the costs can mount quickly.
For example, former baseball all-star Cliff Floyd received a $102,500 settlement from the San Diego Padres for injuries to the brain, face, neck, shoulders and numerous other body parts this past April, documents reviewed by The Times show. Floyd, who retired after the 2009 season, now works as a television and radio analyst.
Overall, more than 900 baseball players, including many minor-leaguers, have made claims in California since 1990, The Times’ data show. Of them, at least 460 allege cumulative head or brain trauma, which has been linked to conditions including dementia, chronic traumatic encephalopathyand Alzheimer’s disease.
Since 2006, WNBA players have made 87 filings in the state, while professional soccer players have made 51 claims in that period. Although it’s not known for its jarring physical collisions, an increasing number of soccer players are alleging head trauma.
Among them is former U.S. national soccer team star Eric Wynalda, who filed in 2009 claiming cumulative injuries to a host of body parts including his head. In 2011, he won a $127,500 settlement paid by the Chicago Fire of the MLS and the Charleston Battery of the United Soccer Leagues. Settlement figures do not include attorney fees.
Claims by former stars garner the most attention and tend to be held up by the sports leagues as evidence that California’s system has been too generous to people paid millions of dollars to play sports.
But a substantial majority of the claims come from athletes who never made anyone’s all-star list, enjoying relatively short careers and frequently earning the league minimum. Hundreds more were filed by people who never made it to the big leagues, earning little better than the minimum wage in the minor leagues, including Arena Football, the XFL as well as minor-league baseball and hockey, data show.
Even in professional sports’ lowest levels, however, the contact is hard and the physical toll apparently very real. During his career, defenseman David Cousineau skated for teams such as the Las Vegas Wranglers, Phoenix Roadrunners and Long Beach Ice Dogs, earning just $650 a week toward the end of his five-year career.
The rangy Canadian never saw a minute of NHL ice, but his workers’ compensation filing in California details a string of traumas to his head, shoulders, back and legs. In 2010, Cousineau won a $68,000 settlement from his last two teams, agreeing to permanently forsake all future claims and to cover his own medical expenses in exchange.
Obesity’s disease label could spell trouble for employers
Originally posted by Andrea Davis on https://ebn.benefitnews.com
Earlier this year, the American Medical Association deemed obesity a disease. AMA board member Patrice Harris, M.D., said in a statement that “recognizing obesity as a disease will help change the way the medical community tackles this complex issue that affects approximately one in three Americans.”
While there is still debate within the medical community as to whether obesity is a disease — the AMA’s own House of Delegates recommended the body not adopt the resolution declaring it a disease — there is speculation the AMA’s decision could open the door to more discrimination claims under the American with Disabilities Act.
EBN spoke to Jay Starkman, CEO of Engage PEO, about the AMA classification of obesity and how it might affect employer decisions.
What are the implications for employers?
Employers need to treat obese individuals like they would anybody else with a disability. … There was always an issue about whether or not an obese person was disabled under the Equal Employment Opportunity Commission guidelines. [Under the] ADA, “disability” is defined as an impairment that substantially limits a major life activity. … but there was always a question about whether or not obesity was one of those things.
One of the issues that existed for a long time was whether or not there needed to be some type of underlying disorder that caused the obesity, whether psychological or physical. By classifying obesity as a disease, it’s pretty clear that whether or not there’s an underlying disorder isn’t going to be a relevant inquiry any more. So that means that employers can’t make hiring decisions — hiring, firing, promotions, raises, compensation — based upon whether or not someone is obese.
Do employers need to consider any changes to their current employee policies?
The first is make sure you have very clear job descriptions — before hiring — that lay out any physical requirements of a position. The second thing is, if somebody is disabled, [because of] obesity or whatever, if it is possible to make a reasonable accommodation for them, that needs to be done.
What else might be important for employers to know?
The definition of “obese” is really in flux right now. A lot of the EEOC cases that existed prior to the AMA coming out with this defined it as “severely” obese or “morbidly” obese. … So nobody is sure what will constitute a disability, because the number of people that are 20% overweight in America is far different than the one for people that are double the standard weight. So I just think that it needs to be a very serious concern in people’s minds.
What You Need to Know about the Small Business Health Care Tax Credit
Originally posted on https://www.irs.gov
How will the credit make a difference for you?
For tax years 2010 through 2013, the maximum credit is 35 percent of premiums paid for small business employers and 25 percent of premiums paid for small tax-exempt employers such as charities.
For tax years beginning in 2014 or later, there will be changes to the credit:
- The maximum credit will increase to 50 percent of premiums paid for small business employers and 35 percent of premiums paid for small tax-exempt employers.
- To be eligible for the credit, a small employer must pay premiums on behalf of employees enrolled in a qualified health plan offered through a Small Business Health Options Program (SHOP) Marketplace.
- The credit will be available to eligible employers for two consecutive taxable years.
Here’s what this means for you. If you pay $50,000 a year toward workers’ health care premiums — and if you qualify for a 15 percent credit, you save... $7,500. If you save $7,500 a year from tax year 2010 through 2013, that’s total savings of $30,000. If, in 2014, you qualify for a slightly larger credit, say 20 percent, your savings go from $7,500 a year to $10,000 a year.
Even if you are a small business employer who did not owe tax during the year, you can carry the credit back or forward to other tax years. Also, since the amount of the health insurance premium payments is more than the total credit, eligible small businesses can still claim a business expense deduction for the premiums in excess of the credit. That’s both a credit and a deduction for employee premium payments.
There is good news for small tax-exempt employers too. The credit is refundable, so even if you have no taxable income, you may be eligible to receive the credit as a refund so long as it does not exceed your income tax withholding and Medicare tax liability.
And finally, if you can benefit from the credit this year but forgot to claim it on your tax return, there’s still time to file an amended return.
Click here if you want more examples of how the credit applies in different circumstances.
Can you claim the credit?
Now that you know how the credit can make a difference for your business, let’s determine if you can claim it.
To be eligible, you must cover at least 50 percent of the cost of single (not family) health care coverage for each of your employees. You must also have fewer than 25 full-time equivalent employees (FTEs). Those employees must have average wages of less than $50,000 (as adjusted for inflation beginning in 2014) per year. Remember, you will have to purchase insurance through the SHOP Marketplace to be eligible for the credit for tax years 2014 and beyond.
Let us break it down for you even more.
You are probably wondering: what IS an FTE. Basically, two half-time workers count as one FTE. That means 20 half-time employees are equivalent to 10 FTEs, which makes the number of FTEs 10, not 20.
Now let’s talk about average annual wages. Say you pay total wages of $200,000 and have 10 FTEs. To figure average annual wages you divide $200,000 by 10 — the number of FTEs — and the result is your average annual wage. The average annual wage would be $20,000.
Also, the amount of the credit you receive works on a sliding scale. The smaller the business or charity, the bigger the credit. So if you have more than 10 FTEs or if the average wage is more than $25,000 (as adjusted for inflation beginning in 2014), the amount of the credit you receive will be less.
How do you claim the credit?
You must use Form 8941, Credit for Small Employer Health Insurance Premiums, to calculate the credit. For detailed information on filling out this form, see the Instructions for Form 8941.
If you are a small business, include the amount as part of the general business credit on your income tax return.
If you are a tax-exempt organization, include the amount on line 44f of theForm 990-T, Exempt Organization Business Income Tax Return. You must file the Form 990-T in order to claim the credit, even if you don't ordinarily do so.
Don’t forget... if you are a small business employer, you may be able to carry the credit back or forward. And if you are a tax-exempt employer, you may be eligible for a refundable credit.
Many expect to retire after 70
Originally posted September 13, 2013 by Paula Aven Gladych on https://www.benefitspro.com
The number of Americans who expect to retire by age 65 has dropped dramatically since 1991, while the number who expect to retire after 70 has shot up, according to a report by the Employee Benefit Research Institute.
One-quarter of workers in EBRI’s 2013 Retirement Confidence Survey said that the age at which they expect to retire has changed in the past year, and of those, 88 percent believe their expected retirement age has increased.
Twenty-two percent of all workers said they would postpone their retirement. The reality, however, is that even though those people want to work longer, health issues and their employers could prevent them from doing that.
In 1991, only 11 percent of workers expected to retire after age 65. Now that number is 36 percent, while 7 percent of those surveyed don’t expect to retire at all, according to EBRI.
The number of individuals who thought they could retire before age 65 also has decreased steadily over time.
In 1991, 19 percent of survey respondents thought they could retire before age 60 and 31 percent thought they would retire between ages 60 and 64. In 1998, those numbers were still high at 24 percent and 25 percent respectively.
By this year, only 9 percent of respondents thought they would be able to retire by age 60 and 14 percent thought they could do it by age 64.
Twenty-six percent of respondents said they expected to retire at age 70 or older, up from 9 percent in 1991 and 7 percent in 1998.
The Employee Benefit Research Institute is a private, nonpartisan research institute based in Washington, D.C. It focuses on health, savings, retirement and economic security issues.
Top 10 Tricks for a Healthier, High-Energy Workday
Originally posted by Whitson Gordon on https://lifehacker.com
Working at an office can be surprisingly unhealthy. Between sitting all day, eating poorly, and enduring never-ending stress, your office can take a few years off your life. Here's how to stay healthy and energetic at the office (and make the day go by faster).
10. Eat Healthy, All Day Long
Ever have those days at work where you just feel exhausted and can't get anything done? There are a lot of ways to solve that problem, but the #1 fix is healthy eating (starting with breakfast). You should eat your most hearty meal in the morning, when you need the most energy, and continue eating healthily throughout the day to avoid crashes during your productive time. Eating lunch away from your desk can help, too.
9. Set Up a More Ergonomic Workspace
It may not seem like it, but sitting at your desk all day can wreak havoc with your wrists, back, neck, and other body parts if done improperly. Thankfully, it's really easy to set up an ergonomic workspace, without spending a ton of money. Most of it is practicing good posture and positioning your keyboard and mouse properly, though a good office chair is a good investment.
8. Get Up and Move
Having an ergonomic workspace isn't enough, though—all that sitting is still killing you. So, to keep yourself healthy and really avoid RSI injury, it's important to take frequent breaks. All you need is five minutes every once in awhile—in fact, we've created a schedule template that'll make sure you get enough time away from your workspace. If you really want to get out of that chair, a standing desk can be a really great solution too—many people, including Lifehacker's own founding editor Gina Trapani, swear by it.
7. Avoid Eyestrain at Your Computer
Ever get eye pain or headaches at the end of the day, but aren't really sure why? It's probably from staring at that computer all day. The aforementioned breaks can help combat eyestrain quite a bit, but a few of us at Lifehacker have also found that computer-oriented glasses likeGunnars can make a big difference, too.
6. Be Friends with Your Coworkers
Coworkers can be distracting and annoying, but being friends with them can actually make work a lot less stressful. In fact, one study even found that people who were friendly with their coworkers actually lived longer. Even if we're just talking productivity, knowing which coworkers will help you in a bind is incredibly useful, and easy to do with a single email. As long as you keep yourself from getting distracted, office friends can actually be good for your productivity and health.
5. Fit More Exercise Into Your Schedule
Getting regular exercise is one of the best ways to stay healthy and keep your energy level up, but getting regular exercise with a demanding job is tough. This 20-minute exercise plan is a good starting point, though you can also work small bouts of exercise into your day without a full "workout." Working out at work is possible, but tough, so it's up to you to try things out and see what works.
4. Cultivate Personal Rituals that Keep You Sane
It may seem silly, but little personal rituals during the day—whether it's a relaxing afternoon cup of tea or kicking back with the funnies—can really improve your mental and physical health. So don't neglect them! You should already be taking a few breaks during the day (see tip #8), so use them to your advantage. Having a good daily routine can go a long way. .
3. Get Better Sleep (or Sneak In a Nap)
You already know lack of sleep is bad for your work and health, but few of us actually do something about it. Well, it's time. Try sneaking in a nap at work if you can't force yourself to get enough sleep at night. Even a short power nap can keep you productive and creative. Justmake sure your nap isn't too short (or too long) and you'll be on your way to a more productive workday.
2. Work Smarter, Not Harder
Working yourself to the bone can create stress and really weigh on your health. If you're a regular reader of Lifehacker, you know our main philosophy is to work smart, not hard: that means using your time efficiently, doing your most important work during your body's high-energy hours, and avoiding the "cult of busy." The smarter you work, the less time you have to spend stressing out over everything you have to do.
1. Go Home
Building off the above: more hours does not equal more work. Ask yourself: how many hours do you work a week? Most research shows that if it's over 40 hours, you're hurting your productivity, your health, and your income (since you're working fewer hours for the same pay). The key? Stop working and go home at night. It's more challenging than it sounds, but it's well worth it.
7 Ways To Keep Your Employees Happy (And Working Really Hard)
Originally posted September 8, 2013 by Karsten Strauss on https://www.forbes.com
It doesn’t matter what you build, invent or sell; your organization can’t move forward without people. CEOs, company founders and managers all over the world know that keeping the teams beneath them moving forward together in harmony means the difference between winning and dying.
Prof. Leonard J. Glick, Professor of management and organizational development at Boston’s Northeastern University, teaches the art of motivating employees for a living. He let FORBES in on a few tips for entrepreneurs and managers looking to keep their people smiling and producing.
Build Ownership Among Your Crew
You’ve got to get employees to feel that they own the place, not just work there. “One of the principles of self-managed teams is to organize around a whole service or product,” Glick explained. In other words, make sure company personnel feel responsible for what the customer is buying.
One way to inspire that feeling is to have each member of a team become familiar with what other team members are doing, allowing them to bring their ideas for improvement to the table and have input in the whole process. If the roles are not too specialized, have your people rotate responsibilities from time to time. “It all contributes to a feeling of ‘it’s mine,’ and most people, when it’s theirs, don’t want to fail, don’t want to build poor quality and don’t want to dissatisfy the customer,” said Glick.
Trust Employees To Leave Their Comfort Zones
Few employees want to do one specific task over and over again until they quit or retire or die. Don’t be afraid to grant them new responsibilities—it will allow them to grow and become more confident in their abilities while making them feel more valuable to the organization.
Though managers might feel allowing their people to try new things presents a risk to productivity or places workers outside of their established place, it heads off other issues. “To me the bigger risk is having people get burnt out or bored,” explained Glick.
Keep Your Team Informed
Business leaders have a clearer perspective on the bigger picture than their employees do. It pays to tell those under you what’s going on. “Things that managers take for common knowledge about how things are going or what challenges are down the road or what new products are coming… they often don’t take the time to share that with their employees,” Glick said. Spreading the intel lets everyone in on the lay of theland and at the same time strengthens the feeling among workers that they are an important part of the organization.
Your Employees Are Adults—Treat Them Like It
In any business there is going to be bad news. Whether it’s to do with the company as a whole or an individual within the organization, employees need to be dealt with in a straightforward and respectable manner. “They can handle it, usually,” said Glick. If you choose to keep your people in the dark about trying times or issues, the fallout could be a serious pain in the neck. “The rumors are typically worse than reality. In the absence of knowledge people make things up.”
You’re The Boss. You May Have To Act Like It Sometimes (but be consistent)
Though this issue is affected by an organization’s overall culture, there are going to be times when you have to make a decision as a leader, despite whatever efforts you may have made to put yourself on equal footing with your personnel. “Ideally they have an open relationship but not necessarily are peers,” Glick said of the manager-employee relationship. “I think the worst thing is to pretend you’re peer… it’s the inconsistency, I think, which is the bigger problem.”
Money Matters (But Not As Much As You Think)
Compensation packages are a big deal when employees are hired, but once a deal has been struck the source of motivation tends to shift. “The motivation comes from the things I’ve been talking about—the challenge of the work, the purpose of the work, the opportunity to learn, the opportunity to contribute,” Glick explained.
When it comes to finding a salary that will allow your employees to feel they’re being paid fairly, don’t bend over backwards to lowball them. If you do, they will eventually find out and not be happy. “If the salary were open, is it defensible?”
Perks Matter (But Not As Much As You Think)
Some companies (we’re looking at you Google GOOG +0.96%) have received attention for offering lavish perks to their personnel – massages, free gourmet lunches, ping pong tables, childcare facilities – but, like money, these things tend to be less powerful motivators for workers than in-job challenges and the feeling of being a valuable part of a quality team that will recognize their contribution. A manager needs to understand that though those perks are great and release burdens from employees’ shoulders, they are not a substitute for prime sources of professional inspiration.
“I don’t think people work harder, work better because of those things,” said Glick. “It may make it easier for them to come to work, I understand that.”