Remote Work Policies Should Now Stress Flexibility
While employers are in the midst of distributing guidelines for employees working remotely, it's important for management to also outline policies and procedures for working remotely. Read this blog post to learn more.
Organizations are implementing remote-work arrangements for their employees due to the COVID-19 coronavirus outbreak—many for the first time—and need to be able to outline expectations and guidelines for working outside the office.
Generally, remote-work policies cover eligibility, working expectations, legal considerations and technology issues, but, during these extraordinary circumstances, flexibility is paramount.
We're undergoing one of the biggest changes in history in how people work, said Brian Kropp, chief of research in the HR practice at Gartner, a research and advisory firm in Arlington, Va. "We have a set of people who have never worked from home who are now doing it full time. We also have a set of managers who have never managed people working from home. Under these circumstances, the policies shouldn't be thought of as managing productivity, but more a set of guidelines and norms for people managing and working in a brand-new way."
Kropp said that employers should design their remote-work policies around outcomes, not workflows and processes. "The idea is that employees are expected to accomplish their goals, but how they do it and when they do it is flexible."
Just applying a traditional telecommuting policy to all workers during this unprecedented situation will lead to problems, Kropp said. "Look at your current policy and see what makes sense in this situation, and, if you're not sure, lean toward flexibility and trust as opposed to measuring and monitoring your employees. If employees are not given flexibility, it will be harder for them in their personal lives and they will feel that they are not trusted, which will come back to bite the organization when we come out of this."
Gregory Abrams, an attorney in the Chicago office of Faegre Drinker, said that being flexible with remote workers right now is not only good management practice but necessary, considering the quickly changing legal landscape.
"Clear policies are always advisable, but employers must be ready to adjust quickly as circumstances change," he said, noting that new Department of Labor guidelines could affect remote work. "Policies should clarify that expectations are subject to change quickly and unexpectedly given the current climate."
With flexibility as a guide, there are certain core elements of working from home that should be addressed in a written policy.
Define Eligibility and Duration
First, companies should define whom the policy covers and when it applies, as some workers may still be required to be at the worksite and others may not be able to work remotely. Employers may want to clarify whether the policy is only in effect during the coronavirus-related shutdown.
Kropp advised employers not to promise a definitive date to return to the office or termination of the telework policy due to general uncertainty about the duration of COVID-19.
A remote-work policy should include a clause that it may be discontinued at will and at any time.
Working Expectations
Experts agreed that evaluation of remote workers' performance should focus on work output and completion of objectives rather than on time-based performance.
"There are managers that think their employees are sitting at home watching TV all day instead of in front of their laptop working," Kropp said. "The mistake that these managers make is that they are confusing a remote-work policy with a performance management problem. The same employee who sits in front of the TV all day instead of working was probably already not working to his full potential in the office. That employee is not engaged, or the manager is not effectively providing direction."
An appropriate level of communication between employees and their managers should be spelled out in the policy, including expectations of availability, responsiveness and what modes of communication are to be used.
"When you're not meeting with team members in person, creating processes for collaboration and communication are key," said Rebecca Corliss, vice president of marketing for Owl Labs, a Boston-based telecommunications company. "Consider what types of communication tools work best in situations like manager one-on-ones, team all-hands meetings or employee learning and development activities."
Kropp said that, traditionally, there has been an expectation that video calls and meetings from home would be professional and "office-like." Companies are realizing that can be difficult with what's going on now, he added. "A lot of workers are parents with kids at home or taking care of an older parent. A kid will show up crying during one of your WebEx calls. It's going to happen, so companies are relaxing the constraints around what 'professional' and 'office-like' means. Obviously, you can't walk around in your underwear during a video call, but 'appropriate' rather than 'office-like' is a better way to show understanding of the struggles everyone is experiencing."
Legal Issues to Grant
Remote workers are entitled to the same legal protections that in-office workers have, Corliss said. "Working remotely can present some added challenges that need to be addressed to ensure your company is legally compliant," she noted.
One of the most obvious compliance areas to address with remote employees is recording the hours of workers not exempt from the overtime requirements of the Fair Labor Standards Act (FLSA).
Employers must ensure that hourly employees know "the number of hours they are expected to work, what they should do if they need to work outside of scheduled work hours, how to report time, and how to communicate about unanticipated overtime," Abrams said. "There are legions of cases where nonexempt employees allege that they worked off the clock while at home, and you can see a similar scenario playing out during this crisis."
The policy should be clear that all nonexempt telecommuting employees are required to accurately record all hours worked using the employer's time-keeping system. Hours worked in excess of those scheduled per day and per workweek should require the advance approval of a supervisor. But even if employees are instructed not to work more than 40 hours a week, they still must be paid overtime if they do.
"Set up a process to report hours for hourly remote workers," Corliss said. "To avoid high overtime costs, select times that employees should and shouldn't be working. With clear guidelines, they won't be able to work outside of these hours unless they have permission from their manager. This makes it easier to avoid employees accidentally working more hours than intended."
Abrams added that states have various laws about meal breaks, rest breaks, and how many consecutive hours one can work, and remote work policies need to be mindful of those as well. There could also be Americans with Disabilities Act issues, he said, if accommodations need to be made for remote workers.
Employers are also responsible for remote workers' health and safety. Some companies prefer or require an employee's remote work environment to be approved prior to working remotely.
Injuries sustained by an employee in a home office location and in conjunction with his or her regular work duties are normally covered by a company's workers' compensation policy. Remote employees are responsible for notifying the employer of such injuries as soon as possible.
Technology and Supplies
Remote workers need the right tools to complete their work. Employers need to be clear about what equipment and resources they will provide, whether laptops and videoconferencing tools or payments for office supplies, phone calls, shipping and home-office modifications.
Who pays for home technology is up to the company, but a policy should set expectations to make sure everyone is on the same page, Kropp said. "Both employees and employers must agree on what each is expected to deliver. For example, some companies will pay for high-quality home Wi-Fi, and others are expecting that the worker already have it at home."
For many employees, a laptop and a Wi-Fi connection might not be enough, Corliss said. "You'll also need policies and tools in place for remote team collaboration and communication, like live chat, synchronous screencast recording, live video conferencing and more to ensure technology doesn't get in the way of an effective and meaningful work relationship. Slack and Google Hangouts can act as a virtual water cooler, where employees can discuss the status of a project but also debrief on TV shows, share GIFs and bond over their favorite music."
Companies also should specify the level of tech support they will offer to remote workers and outline what remote employees should do when having technical difficulties.
Employers need to pay extra attention to securing the technology their remote workforce is using. The COVID-19 pandemic is providing plenty of new opportunities for cybercriminals to exploit unsecured technology systems, overworked information technology (IT) staff and panicked employees who are new to working from home.
"In the course of developing communications to employees, examine existing policies closely, such as confidentiality, information security, business continuity, BYOD," said Joseph Lazzarotti, an attorney in the Morristown, N.J., office of Jackson Lewis. "If companies have specific requests, for example if they don't want employees working on public Wi-Fi, then that should be stated in the policy."
SOURCE: Maurer, R. (02 April 2020) "Remote Work Policies Should Now Stress Flexibility" (Web Blog Post). Retrieved from https://www.shrm.org/hr-today/news/hr-news/Pages/Remote-Work-Policies-Should-Now-Stress-Flexibility.aspx
Nearly a third of workers 'actively avoid' going to HR with problems
Did you know: nearly 30 percent of employees avoid going to their HR departments with their problems. Read this blog post to learn more.
Dive Brief:
- One-fifth of workers don't trust HR, and nearly a third (30%) actively avoid going to HR with problems, according to a new survey of more than 500 employees and 300 HR professionals conducted by Zenefits' Workest.
- Of the workers who avoid going to HR, 35% said it's because they don't trust HR to help, and 31% said they feared retaliation. Some of the reluctance may be due to a negative perception of HR or their employers overall; 23% of respondents said they had witnessed or experienced "poor HR, hurtful management, or discrimination." Thirty-eight percent of employee respondents felt that HR did not equally enforce company policies across all employees; 18% of that group said they believed managers received special treatment.
- Most of the HR respondents said that fewer than 30% of complaints they received in the last two years resulted in any disciplinary action. According to a Workest blog post about the survey, "Having less than a third of cases result in disciplinary action led employees to wonder — if they bring complaints forward, will anything even result?"
Dive Insight:
Some employees may have an inaccurate perception of what HR does, but the survey makes clear that workplace culture-building efforts still leave a lot to be desired — particularly when it comes to employees and HR working together to stop harassment.
According to a recent Emtrain study, most employees (83%) would not report harassment if they saw it. Additionally, similar to the findings in the Workest survey, 41% of workers were not confident that management would take a complaint seriously.
Nonetheless, culture is becoming a priority for some business leaders, many of which are hiring chief people officers both to help remedy toxic environments and also as a proactive strategic talent measure.
Investing in retention and culture makes sense for companies' bottom lines: In the past five years, the turnover cost of a toxic work environment was more than $223 billion for U.S. employers, according to Society for Human Resource Management research.
In order for culture efforts to bear fruit, they have to be more than mere lip service. Some believe business leaders and corporate directors are not making real efforts toward these goals. In a recent Accenture survey, business leaders reported financial performance and brand recognition as their most important priorities. Just over a third (34%) of the leaders surveyed ranked diversity as a top priority.
SOURCE: Carsen, J. (02 April 2020) "Nearly a third of workers 'actively avoid' going to HR with problems" (Web Blog Post). Retrieved from https://www.hrdive.com/news/nearly-a-third-of-workers-actively-avoid-going-to-hr-with-problems/575303/
Virtual Presentations, Meetings Require New Approaches for Success
While working remotely has become the new norm for many employers and employees, it's important to keep a strong communication base, especially with team meetings and presentations. Read this blog post from SHRM on various strategies to succeed in leading online meetings.
As more people work from home, many are being asked to take on tasks and use technologies with which they have only a passing familiarity, such as leading team meetings and presenting online rather than in person.
SHRM Online spoke with experts about the different strategies required to succeed in those scenarios, as well as how to use the features embedded in videoconferencing and Web conferencing platforms.
Presenting Online
Giving presentations online rather than in person requires thinking about how to design PowerPoint slides, keep remote audiences engaged when they're facing more distractions and troubleshoot technology snafus that arise in these situations.
Pick up the pace. Attention spans dwindle during virtual presentations. "That doesn't mean you need to cut the amount of your presentation content, but rather that you spread it over more slides so there is more frequent on-screen change for audiences," said Roger Courville, a Portland, Ore.-based speaker and trainer who teaches people how to communicate online and is the author of The Virtual Presenter's Handbook (CreateSpace Independent Publishing Platform, 2009).
Be proactive in guiding audience attention. Presenters should assume that some people are multitasking during an online presentation, Courville said. "You have to ask what the audience is taking away if at times they only glance at what you're presenting," he said. "One thing you can do is make sure the titles on your slides are more descriptive and capture the main point of the slide."
Virtual presenters also should use their voices to guide viewer attention, said Andrew Dlugan, a communications and presentation skills trainer in Vancouver, British Columbia, Canada.
Don't rely only on slide pointers or annotation tools provided on Web conferencing platforms.
"What happens if some people aren't looking at their screens for a while?" he said. "A presenter might say something like 'What do you see below the picture of the woman on this slide?' or 'Look at the data on the right-hand portion of your slide.' "
Courville said presenters should monitor audience attention levels by checking whether people are actively participating on chat features or submitting questions during a moderated Q&A. Some Web conferencing platforms also have a feature called an attention indicator that detects the active application on audience members' screens. If a conference participant has switched to checking e-mail, for example, that tool would register the change. Courville said that while the tool shouldn't be used punitively, it can help presenters get a read on when attendees may be drifting away so they can switch tactics, such as by introducing an audience poll or a short Q&A.
Unnecessary flair can cause technical problems. The use of animation and complex transitions on slides might work well in person, but they can cause problems online, said Bethany Auck, founder and creative director of SlideRabbit, a presentation design and production company in Denver.
Web conferencing platforms handle slide upload and display differently, and experts say it's best to go simple when designing slides, keep file sizes low, and avoid the use of animations or complicated transition techniques between slides.
Consider slide contrast issues and viewer screen size. Assume that many will be viewing your online presentation from smaller laptop screens or even on mobile devices, said Ken Molay, president of Webinar Success, a Web conferencing training and consulting company in Cary, N.C. "Design your slides as if you're creating them for viewers in the back of a large auditorium," Molay said. "Use larger fonts and plenty of white space, and don't put things near the edges of your slides."
Keep in mind that you won't be able to see how your slides display on your audience's screens, and your viewers' computer settings for contrast, brightness and color may vary widely. "Remember that light colors can easily wash out online. Stick with high-contrast color designs, and avoid using subtle tone variations that can be difficult for virtual audiences to see," Molay said.
Leading Small-Group Virtual Meetings
Many of us have been conditioned to hold hourlong meetings, but experts say that standard should be reconsidered with today's new reality.
"One of the most powerful tools built into videoconferencing solutions is the instant meeting," Courville said. "You can easily set up virtual meetings and collaboration sessions in short blocks of time as needed. There are product development teams I know who hold 15-minute videoconferences every morning. The medium can be used as flexibly as a phone call."
Leaders, mute yourself when others are speaking. "Many of us use words like 'OK' or 'uh-huh' as confirmation that we're listening when others are speaking," Molay said. "But in an online meeting, especially if you're the leader or a person of higher authority, others often hear that and they stop talking, wondering if you wanted to interrupt to say something or even that they might have said something wrong. If you stay completely silent, it lets people complete their thoughts."
Not all technology platforms are created alike. If you haven't yet purchased a videoconferencing or Web conferencing platform (most major providers are offering discounts or free trial versions of products during the coronavirus outbreak), Molay said it's important to understand the differences between systems.
For example, the videoconferencing platform Zoom is among those that Molay said have a useful "push to talk" feature that is handy for small-group virtual meetings.
"Everyone enters the meeting in a default mute mode, but when they hold down the space bar, it opens up their microphone," he said. "It only stays open while it's pressed and people are speaking, like the old walkie-talkie."
Molay said the feature is good for group discussions in which everyone wants a chance to participate but a leader doesn't want all microphones open at once, since they're likely to pick up background noise when participants work from home.
You also may want to compare audience polling tools in different systems, Molay said. "Some only allow for a few response choices, while others offer more," he said. Many users will also likely want a polling feature that allows participants to select the best answer rather than all that apply, he said.
Question management tools—a helpful feature for more-structured and moderated Web conferences—also can vary by platform. These tools give session leaders a way to prioritize audience questions.
"If you have 100 people in a Web conference, you'll want a way to mark that certain questions might be a high priority to address on air versus a lower priority that you can follow up on later," Molay said. "Some platforms are better than others in how they allow you to reorder and organize questions."
He added that other key system features to evaluate are the number of participants allowed on video calls, ability to automatically record Web conferences for later viewing, and tools that allow you to easily edit recordings or create transcripts of online meetings.
Watch how you position yourself on webcam. Don't position yourself in front of bright windows, which will place you in shadows. Raise your laptop so the camera is at eye level or higher.
"Laptop webcams are sitting lower and often shoot straight up into your nostrils," Molay said. "That's not the best look for most people."
Troubleshooting Technical Problems
People will inevitably experience problems with video, audio transmission or other functions in virtual settings. "The first thing to do is isolate whether it's just that person having the issue or everyone," Courville said. "In most cases it's just one person, but you usually don't want to stop the whole meeting or presentation just because one person is having a problem."
Molay said leaders can afford to spend only a limited amount of time trying to fix an individual's issues. "It's easy to focus on squeaky wheels in online settings, but you don't want to slow down 30 people to satisfy one person."
Meeting leaders also can mute and unmute participants on most platforms if people are having technical issues and bothering others, Courville said.
Auck, SlideRabbit's founder, said one tactic she uses when leading virtual presentations or workshops is to keep a second computer in view and log in as an attendee. "It won't account for all of the variables of people logging in remotely, but you'll have a tighter view of any lag in how your slides are advancing for viewers," she said.
Mike Fasciani, senior research director at research and advisory firm Gartner, said employees who reside in bandwidth-challenged areas can take steps such as turning off video and joining meetings using dial-in audio options while still seeing the content that's being shared through a browser.
Remote workers also can use their 4G-enabled smartphones rather than laptops or desktops in virtual meetings, he said. "Many video-meeting and workstream collaboration applications were built with a mobile-first design intent and so work as well as, if not better than, the desktop and Web client access," he said.
SOURCE: Zielinski, D. (30 March 2020) "Virtual Presentations, Meetings Require New Approaches for Success" (Web Blog Post). Retrieved from https://www.shrm.org/resourcesandtools/hr-topics/technology/pages/virtual-presentations-meetings-require-new-approaches.aspx
Older workers are staying in the job market. Here’s why
According to the Bureau of Labor Statistics, the amount of employees over the age of 65 has risen by 697,000. With over two million jobs being created over the past 12 months with the help of the economy, the older generations are still wanting to be employed. Read this blog post to learn more as to why.
Older workers are sticking around the job market. This is why
The number of workers aged 65 and above increased by 697,000 as the economy created more than 2 million new jobs over the past 12 months, according to data from the Bureau of Labor Statistics in this CNBC article. The spike in the number of older workers represents about 36% of the overall increase, reflecting a trend over the past 10 years. “The norms about working at older ages have changed quite a bit, and I think in a way that really is to the advantage of older workers who want to keep working,” says an expert.
What ‘Rothifying’ 401(k)s would mean for retirees
Clients will not benefit from a switch to a retirement system where contributions would be made on an after-tax basis even if it could result in bigger tax revenue in the near term, experts write in The Wall Street Journal. "Over their lifetimes, workers would accumulate one-third less in their 401(k)s under a Roth system. This is because, with no tax advantage from contributing to a 401(k), workers would save less and those lower contributions would earn less over the years," they write. Moreover, "lifetime tax revenue generated by the average worker under a Roth regime would fall 6% to 10%, compared with the current regime."
Stop 'dollar-cost ravaging' your clients’ portfolio in retirement
Retirees who stick to a 4% withdrawal rule during a market downturn are putting their financial security at risk, as their portfolio would not recover even if the market eventually improves, writes an expert in Kiplinger. Instead, seniors should focus on how much income they can generate from their portfolio, he writes. "[I]t means choosing investments — high dividend-paying stocks, fixed income instruments, annuities, etc. — that will produce the dollar amount you need ($2,000, $3,000, $5,000 or more) month after month and year after year."
Will clients owe state taxes on their Social Security?
Retirees may face federal taxation on a portion of their Social Security benefits — but they could avoid the tax bite at the state level, as 37 states impose no taxes on them, writes a Forbes contributor. "While probably not a big enough issue to warrant moving in retirement, it is something to consider when choosing where you want to spend your retirement," writes the expert. "At the very least, you need to know about Social Security taxation when figuring out how much additional income you will need to have in order to maintain your standard of living during retirement."
8 ways clients can start saving for college now
There are a few savings vehicles that clients can use to prepare for college expenses, but they need to consider the pros and cons, according to this article in Bankrate. For example, clients who save in a 529 savings plan can get tax benefits — such as tax deferral on investment gains and tax-free withdrawal for qualified expenses — but will face penalties for unqualified withdrawals aside from taxes. Parents may also use a Roth IRA to save for their child's college expenses, but these accounts are subject to contribution limits and future distributions will be treated as an income, which can reduce their child's eligibility for scholarships or assistance.
SOURCE: Peralta, P. (18 February 2020) "Older workers are staying in the job market. Here’s why" (Web Blog Post). Retrieved from https://www.employeebenefitadviser.com/news/why-older-workers-are-staying-in-the-job-market
Employees want year-round benefits instead of holiday parties
Are employees willing to trade holiday celebrations for better benefits? According to research from Reward Gateway, more than half of employees would skip the parties and celebrations for rewards and bonuses. Read the following blog post from Employee Benefit News for more information.
Tis’ the season to head to the holiday party and celebrate with coworkers, but more employees are willing to swap the festivities for better benefits and year-long recognition from their employers.
More than half of employees would skip the holiday party if it meant rewards and recognition throughout the year, according to a new survey by Reward Gateway, an employee engagement platform. Additionally, 58% of recent graduates said they would give up an end-of-year bonus for more frequent rewards.
“Being the holiday season, all parts of the workforce are trying to prioritize their flexibility and collaboration and their shared purpose,” says Robert Hicks, group HR director at Reward Gateway. “Employers could do more, and there is a growing trend of more frequent benefits that align to your purpose, mission and values.”
The office holiday party has long been a mainstay of work culture, and 76% of companies plan to throw a party in 2019, up 11% from last year. Additionally, 24% of companies plan to give performance-based bonuses to select employees, while just 9.6% plan to give bonuses to all employees, according to a survey from recruiting firm Challenger, Gray & Christmas.
Employees are seeking value in a culture of recognition throughout the year instead, and want more consistent collaboration and communication with employers. Going hand-in-hand with that sentiment is financial assistance through their benefits offerings.
“This can come in two core ways, the first being perks that can help you reduce your overall spending.” Hicks says. “Employees are also looking for a really strong recognition culture, and on top of that, adding in financial rewards throughout the year.”
With unemployment at a 50-year low, the quest to attract and retain top talent should push employers to encourage a workplace that doesn’t just celebrate successes once a year.
“Everybody knows it’s a really competitive market place, and your number one response needs to be what can we do to be a really great workplace for people to stay and for people to join,” Hicks says. “Organizations that prioritize listening to their people and delivering continuous rewards and recognition can create an environment where employees are more engaged and excited about where they work all year — not just during the holidays.”
SOURCE: Place, A. (13 December 2019) "Employees want year-round benefits instead of holiday parties" (Web Blog Post). Retrieved from https://www.benefitnews.com/news/employees-want-year-round-benefits-instead-of-holiday-parties
Tech tools underused for workplace engagement: survey
Did you know: Only 45 percent of employers use technology to improve employee engagement, according to a survey of HR professionals. Read the following blog post to learn more about using technology to enhance workplace engagement.
Just 45% of employers are using technology to improve employee engagement, according to a new survey of thousands of HR professionals in organizations of varying sizes.
The research finding comes from the Next Concept Human Resource Association (NCHRA) and Waggl, a real-time engagement platform. HR tech industry professionals weighed in on the topic at the HR TechXpo 2019 and others as part of the latest “Voice of the Workplace” pulse survey.
Of those respondents, 92% said they would like to create a strong internal culture that affects results. In addition, 81% believed that investing in people-focused programs and skills such as onboarding, performance and employee engagement would help increase revenues and profit margins.
Lisa Hickey, VP of professional development at NCHRA, was “a bit surprised” that only 45% of her group’s members reported that their organizations are using technology to improve employee engagement in the face of business volatility and a tight labor market.
NCHRA and Waggl, both based in the San Francisco Bay Area, also distilled into a ranked list crowdsourced responses to a survey question about social media and gamification platforms as tools to increase employee engagement.
Several caveats were expressed. One HR leader, for example, cautioned that they need to be tied to the type of company and demographics, as well as the extent to which employees are willing to embrace change. Another respondent said it’s important that gamification not be “viewed as a nuisance and a distraction from accomplishing job tasks.”
The bottom line is that giving employees an opportunity to help shape their organization’s culture, experience, vision and execution enables them to “feel more connected to the workplace and empowered to drive change,” according to Alex Kinnebrew, chief marketing officer and head of growth strategy for Waggl.
Benefit brokers and advisers can play a critical role in helping their employer clients bridge the technology gap when it comes to improving employee engagement, Hickey believes. “From designing an offering that represents company goals to securing the best technology to administer the program, brokers are guiding you every step of the way and also helping utilize technology beyond benefits administration that delivers more services and solutions for the company,” she says.
Founded in 1960, NCHRA is the nation’s second-largest HR association — serving more than 30,000 professionals in 23 states and several countries and showcasing more than 100 annual educational events.
Waggl’s Employee Voice platform examines critical business topics that include culture, experience, vision and execution. The company’s management team includes executives from Glassdoor, SuccessFactors and Coupa. Customers include Paychex, eBay, City Electric Supply, UCHealth, American Public Media and Freddie Mac.
SOURCE: Shutan, B. (4 December 2019) "Tech tools underused for workplace engagement: survey" (Web Blog Post). Retrieved from https://www.benefitnews.com/news/tech-tools-underused-for-workplace-engagement-survey
A health insurance primer for your employees during Open Enrollment
The end of open enrollment season is quickly approaching. During open enrollment, employees have the chance to choose a benefits plan or change from the plan they currently have. Read this blog post for a few things employees should consider when choosing a plan.
Now is the time to choose the best health plan for you and your family. During open enrollment season, employers and the Health Insurance Marketplace (or Exchange) let you choose a plan or change from the plan you have. Making the right choice can impact your health and your wallet.
Even if your current coverage seems satisfactory, your employer or the Exchange may offer new options that better suit your needs. It is important to compare costs and to understand differences in benefits, networks and other rules. In some states, plans available outside the official Marketplace offer attractive, low premiums but may have dollar limits on benefits, or may not provide coverage for childbirth, mental health and other services mandatory for plans that qualify under the Affordable Care Act (the “ACA” or “Obamacare”). Review and compare such plans’ terms carefully.
The time for your decision is limited. Employers generally provide a month or more to make your selection. Open enrollment for the federal Marketplace runs only from November 1, 2019, to December 15, 2019. Exceptions may be made for life changes like the birth of a child or loss of coverage under a spouse’s plan, but if you miss open enrollment season, you will probably have to wait another year to enroll. Here are some things to think about when choosing a plan.
Costs
The first cost to consider is the premium — the payment, usually monthly, to maintain coverage. If you get your plan through your job, your employer may pay all or part of the premium. If you choose a Marketplace plan, you may qualify for a premium tax credit to reduce the premium.
Other insurance costs are known as cost sharing, because you share the cost of care with your plan. They may take the form of a copay (a fixed dollar amount for each service), coinsurance (a set percentage of the cost of a service) or a deductible (the amount you must pay before your plan starts paying for services). If you select a Marketplace plan, you may qualify for cost-sharing reductions to lower those expenses.
In principle, it would be nice if all the costs were as low as possible. But usually, low-cost sharing comes with a high premium. High-deductible health plans may offer lower premiums but you will pay more out-of-pocket before your insurance pays anything.
In shopping for a health plan, consider how high a premium you are willing to pay for the level of cost sharing you would like. For example, if you or a family member have a chronic illness, you may need regular treatment and may be at risk for hospitalization. In that case, you may be willing to pay a higher premium for low-cost sharing. But if you are a healthy, young, single adult who rarely sees a doctor, you might accept a high deductible in exchange for a low premium.
Bear in mind that if you have a high-deductible health plan, you might be eligible to set up a health savings account (HSA). An HSA provides tax savings that stretch the dollars you contribute to the account to help pay for qualified medical expenses.
Choice of Doctors
If you like your current doctors and want to keep seeing them, make sure they and their facilities belong to the network of providers who have contracted with the plan you are considering. Check the plan’s online provider directory to make sure those doctors and their facilities are listed in its network. Even if you do not have a regular doctor, make sure the network includes providers close to where you live and work.
If you want to choose freely among many providers, a plan with a broad network might be for you. That may be more expensive than a plan with a narrow network, which may cost less but has a more limited choice of providers.
Out-of-Network Coverage
As good as a plan’s network might be, you may still wish to consult providers outside the network from time to time. If so, consider a Preferred Provider Organization (PPO) or Point of Service (POS) plan; each provides out-of-network benefits. With such plans, you will still spend more for out-of-network than in-network care, but at least you will have some coverage. Two other types of plans, Health Maintenance Organization (HMO) and Exclusive Provider Organization (EPO), typically will not pay for out-of-network care except for emergencies.
Who’s in Charge of Your Care?
In HMO and POS plans, you choose a primary care physician (PCP) who acts as a form of “gatekeeper” for your care. Unless it is an emergency, when you need medical treatment, you go to the PCP first. The PCP either treats you personally or refers you to specialists in your network. If you like having a PCP’s guidance, this arrangement might work for you. But if you prefer choosing specialists directly, you might opt for a PPO or EPO.
ACA-Compliant versus Association and Short-Term Plans
Whatever plan you choose, it is important to consider whether it covers all the types of healthcare you might need and whether it limits the dollar amount of your coverage. Plans that comply with the ACA are comprehensive because they have to cover 10 essential health benefits. Short-term, limited-duration (STLD) health plans, do not have to cover all those benefits. They may, for example, not cover childbirth, mental health or prescription drugs. If you end up needing care that is not covered, you will have to pay the whole cost yourself.
AHPs and STLD plans differ from ACA-compliant plans in other ways. For example, STLD plans can impose annual or lifetime dollar limits on coverage. If your care costs more than those limits, you have to pay the excess amount.
SOURCE: Gelburd, R. (5 December 2019) "A health insurance primer for your employees during Open Enrollment" (Web Blog Post). Retrieved from https://www.benefitnews.com/opinion/a-health-insurance-primer-for-your-employees-during-open-enrollment
Why employers should consider adding volunteer time off benefits
Employers are being pushed to become savvier with social responsibility causes and their benefit offerings with the strong job market. This is giving rise to volunteer time off benefits. Read this blog post from Employee Benefits News for more on why employers should consider adding volunteer time off benefits.
The strong job market is pushing employers to become more savvy about socially responsible causes. This is giving rise to volunteer time off benefits as one popular strategy for employers seeking unique ways to attract and retain talent.
Indeed, 65% of companies offered paid time volunteer programs in 2018, according to data from the organization Chief Executives for Corporate Purpose, which looks to help companies transform their social strategy. That figure represents a 4% rise from 2017.
Organizations that offer employees paid days off to volunteer their time and support the nonprofit causes they care about are going to be more attractive to job seekers.
“Offering VTO as a benefit for employees is one of the best ways to engage employees with their local communities through volunteering and donations,” says Jeff Fraley, vice president of corporate engagement at United Way of the National Capital Area, an organization that provides relief of social problems affecting the community. “It encourages employees to participate in social good and helps to foster meaningful relationships within a community and the company itself.”
About 75% of millennials expect their employer to participate in social good, either with donations or through volunteering, according to a Glassdoor survey. Additionally, 51% of workers expect their employers to allocate work time and resources for their employees to volunteer for social causes.
United Way took a look at VTO benefits across the country in an effort to better understand these programs from an employer/employee perspective. The survey looked at the demographics of 49 large U.S. companies that offer VTO in order to get a sense of the types of workplaces offering this benefit. What it found was that the majority of companies that offer VTO are headquartered in New York, and in or around Silicon Valley.
Additionally, of the 49 companies studied, 12 were in the professional services industry, 12 were in the information technology industry, and nine companies were in the financial services and insurance industries. The survey also uncovered that the maximum number of volunteer hours offered per year to each employee is 20 hours, which amounts to about two and a half days of volunteer time off.
If the company with the largest revenue headquartered in each state implemented one day of VTO, the projection of total volunteer hours in the U.S. would be over 75 million hours, or nine million days, according to United Way. It would cost companies, on average, $27.4 million to implement an annual eight hour VTO policy.
“VTO is just one option if you're looking to expand your impact in the community,” Fraley says. “An employer can also sponsor a nonprofit, match employee donations, or other philanthropic initiatives. What’s important is to think about some sort of incorporation of corporate social responsibility as we're seeing that it's an increasingly important criterion of employers for millennials.”
SOURCE: Schiavo, A. (2 December 2019) "Why employers should consider adding volunteer time off benefits" (Web Blog Post). Retrieved from https://www.benefitnews.com/news/why-employers-should-consider-adding-volunteer-time-off-benefits
IRA spousal contributions can mitigate the high cost of women’s work breaks in retirement plans
According to a November 2018 study, women who took a year off from work in a 15-year period had 39 percent lower average annual earnings than women who worked continuously through that time. Read this blog post for more on how spousal contributions can mitigate the high cost of work breaks in retirement plans.
Women employees face special retirement savings challenges compared with their male counterparts. On average, they earn less and log fewer years of earned income compared to men. That’s because, in part, because women take multiple breaks from work, turn down work or decline promotions because of family care obligations.
The cost of a career break can be high. A November 2018 study by the Washington-based Institute for Women’s Policy Research found that women who took just one year off from work in a 15-year period had 39% lower average annual earnings than women who worked continuously through that time. The study also showed that the number of women taking at least one year off of work during a 15-year period was nearly twice the rate of men — 43% of women compared to 23% of men.
As a result, women are less likely to set aside money in a savings arrangement or to contribute to an employer-sponsored retirement plan.
Spousal advantage
Married women (and men) who take work breaks may stay on track with their retirement savings goals by making IRA (traditional or Roth) contributions based on their working spouse’s income — if they meet these requirements.
- The couple must file a joint federal income tax return
- The working spouse must have enough earned income to make any IRA contributions on behalf of the nonworking spouse, or, if both spouses are contributing, enough income to support both spouses’ contributions
- Assuming enough earned income, each spouse can contribute up to $6,000 (plus $1,000 if turning age 50) for 2019. This limit applies to traditional and Roth IRA contributions combined
- The spouse receiving a traditional IRA contribution must be under age 70 ½ for the entire year
- To be eligible for Roth IRA contributions, the couple must also satisfy income requirements.
Roth IRA income restrictions
The amount that an individual is eligible to contribute to a Roth IRA depends on the amount of the couple’s modified adjusted gross income (MAGI). If the couple’s joint MAGI for a tax year is less than the IRS phase-out range, each spouse can make the maximum Roth IRA contribution allowed for that tax year (assuming enough MAGI to support both spouse’s contributions). If it’s above the phase-out range, neither spouse is eligible to contribute to a Roth IRA. Keep in mind that they could still contribute to a traditional IRA, if under age 70 ½. If the couple’s joint MAGI falls within the phase-out range, their maximum contribution amount is reduced. The MAGI phase-out range is subject to cost-of-living adjustments each year.
Traditional IRA income tax deductions
Note that separate MAGI phase-out ranges apply to traditional IRA contribution deductions — another way for non-working married individuals to potentially benefit when saving for retirement with an IRA. The ability to take a federal income tax deduction for a traditional IRA contribution — if eligible — appeals to many savers. But deduction eligibility depends on whether either spouse is an “active participant” in an employer-sponsored retirement plan. An active participant is generally making or receiving contributions to her retirement plan accounts for the applicable year. Because active participants have access to a workplace retirement plan, the IRS uses its MAGI to determine whether each spouse can take a full deduction, a partial deduction or no deduction at all.
No minimum required
Regardless of which IRA a couple chooses to, the main thing is to contribute — even if it’s a small amount. There is no minimum amount that must be contributed to either type of IRA. Couples can contribute whatever they’re comfortable with, up to the previously described limit. For those concerned about not having enough to set aside in an IRA during a career break, contributing even just $500 or $1,000 for the year will still make a difference.
It certainly beats not saving at all.
SOURCE: Van Zomeren, B. (9 December 2019) "IRA spousal contributions can mitigate the high cost of women’s work breaks in retirement plans" (Web Blog Post). Retrieved from https://www.benefitnews.com/opinion/ira-spousal-contributions-can-mitigate-cost-of-womens-work-breaks-in-retirement
6 steps to enhance your recruiting strategy
According to recent data from PwC, more and more potential employees are turning down job offers because of bad recruitment experiences. Often, when job candidates have a poor experience while applying for a job, they share the details of their encounter with friends, family and social media. Read this blog post for six steps employers can use to enhance their recruitment strategy.
Employers may be contributing to their organization’s bad reputation without even knowing it during the recruiting process
A strong labor market is presenting employees with more options, allowing them to weigh potential employers against each other, and eliminating the need to accept the first offer they get. Unique and inventive recruiting strategies are vital in attracting the right talent to your organization, but more potential employees are turning down job offers because of bad recruiting experiences, according to data from PwC.
Employers can develop some bad habits when it comes to recruiting, like dragging out the process and even ghosting candidates. When potential employees have a poor experience applying for a job with a company, they are going to share the details of that encounter with friends, family and the world at large thanks to social media.
“Job seekers today expect the hiring process to be streamlined, efficient and customized to their personal preferences, with effortless technology and sincere human interactions,” says Bhushan Sethi, a workforce strategy leader at PwC.
However, very few organizations are providing this experience, according to the PwC survey of 10,000 job seekers. Not only can a bad recruiting experience drive candidates away, it can also create lasting damage to an organization’s reputation as an employer.
“Leaders have an opportunity to gain an edge in the battle for talent by delivering a superior recruiting experience to every candidate, even those who don’t receive an offer,” Sethi says.
But there are ways to make a candidate’s recruiting experience more positive, even if they don’t ultimately get an offer. Here are six steps organizations can take to deliver a “first-rate” recruiting experience to potential candidates.
Find a balance between tech and human interaction
The human interactions candidates experience during the recruitment process makes a stronger impression than any digital experience, the survey shows. “Candidates want positive, direct human interaction throughout the recruiting process, whether that’s in person, over the phone or via email,” Sethi says. “Two-thirds of candidates said personalized initial outreach makes them more likely to apply for a position.”
Technology does have an important role to play in the recruiting process. However, recruiting technology is typically designed with the enterprise, not the candidate, in mind, Sethi says. Employers should look to utilize technology that streamlines routine tasks or makes the hiring process easier for job applicants. About 44% of those surveyed by PwC say they’re open to using automation and technology options for routine touchpoints and to get information during the recruiting process. Another 65% said they would like if an organization had an application dashboard so they could track their progress.
Communicate often and keep the process quick
More than half of job seekers (56%) said they would discourage someone else from applying for a job with a company where they had a bad recruiting experience, according to PwC data. A majority of job seekers (92%) said they’ve experienced poor recruiting practices at some point in their career. Candidates pointed out the two most frustrating behaviors by recruiters: dragging out the process by more than a month and recruiters who withdraw communication with no explanation.
“These practices are rampant: 61% of candidates said they’ve simply stopped hearing from an organization during the hiring process,” Sethi says. “And 67% gave up pursuing a role because the recruiting process took too long.”
Ask for social media details
About 50% of job seekers said they’d be willing to share their social media data with potential employers if it helps to determine a better job and organizational fit. Checking out a potential employee’s social media allows HR to understand more about the candidate. But candidates are only willing to share their social media data if the right privacy measures are in place. Recruiters can gain candidate’s trust by being transparent. About 78% of those surveyed by PwC said they expect the recruiting process to be clear on how personal data is used. About 77% of candidates said they wouldn’t apply for a job if they felt their privacy and information wasn’t protected.
Highlight the rewards potential employees most desire
Upskilling, personal flexibility and inclusion are three key aspects of workplace culture that have become more desirable among candidates than salary, according to PWC. Additionally, candidates are willing to give up 11.7% of their salary for more flexibility and training.
Give candidates a way to experience the company’s culture first hand
Today’s candidates are looking for more than a job, the PwC survey notes. They want an employee experience that provides a sense of purpose and pride.
“Culture is so meaningful that 33% of C-suite-level candidates said they’d take a pay cut to work for a mission-driven company that aligns with their ideals,” Sethi says.
It can be challenging for recruiters to provide an accurate sense of a company’s culture. Recruiters can help candidates experience this firsthand by holding networking and other social events.
Always be mindful of your reputation
When candidates have a bad recruiting experience it does more damage than recruiters realize. “It can cause lasting reputational harm and even hurt your chances of hiring the workers who are hardest to find,” Sethi says.
Almost half of candidates (49%) working in high-demand sectors like tech, banking and energy say they would be more likely to turn down a job due to a bad recruiting experience. Of those surveyed by PwC 71% say working for a company with a good reputation as an employer is more important than working for a well-known customer brand.
“That’s good news for small brands jockeying for talent with big-name competitors,” Sethi says. “You can gain an edge by cultivating and promoting a strong, positive reputation. It’s also a call to action for bigger brands: you can’t rely on name alone to attract talent.”
SOURCE: Schiavo, A. (9 December 2019) "6 steps to enhance your recruiting strategy" (Web Blog Post). Retrieved from 6 steps to enhance your recruiting strategy