Changes are coming to paid leave. Here’s what employers should know
Many states and local governments are enacting their own paid leave policies, making it difficult for employers to navigate employee paid leave. Read this blog post for what employers should know about the coming changes for paid leave.
A growing number of states and local governments are enacting their own paid leave policies. These new changes can be difficult for employers to navigate if they don’t understand the changes that are happening.
Adding to the confusion among employers, paid sick leave and paid family leave are often used interchangeably, when in fact there are some important distinctions. Paid sick leave is for a shorter time frame than paid family leave and allows eligible employees to care for their own or a family member’s health or preventative care. Paid family leave is more extensive and allows eligible employees to care for their own or a family member’s serious health condition, bond with a new child or to relieve family pressures when someone is called to military service.
The best-known type of employee leave is job-protected leave under the Family Medical Leave Act, where employees can request to take family medical leave for their own or a loved one’s illness, or for military caregiver leave. However, leave under FMLA is unpaid, and in most cases, employees may use available PTO or paid leave time in conjunction with family medical leave.
Rules vary by state, which makes it more difficult for multi-state employers to comply. The following is an overview of some new and changing state and local paid leave laws.
Paid sick leave
The states that currently have paid sick leave laws in place are Arizona, California, Connecticut, Maryland, Massachusetts, New Jersey, Oregon, Rhode Island, Vermont and Washington. There are also numerous local and city laws coming into effect across the country.
In New Jersey, the Paid Sick Leave Act was enacted late last year. It applies to all New Jersey businesses regardless of size; however, public employees, per diem healthcare employees and construction workers employed pursuant to a collective bargaining agreement are exempt. As of February 26, New Jersey employees could begin using accrued leave time, and employees who started after the law was enacted are eligible to begin using accrued leave 120 days after their hire dates.
Michigan’s Paid Medical Leave Act requires employers with 50 or more employees to provide paid leave for personal or family needs as of March.
Under Vermont’s paid sick leave law, this January, the number of paid sick leave hours employees may accrue rose from 24 to 40 hours per year.
In San Antonio, a local paid sick leave ordinance passed last year, but it may not take effect this August. The ordinance mirrors one passed in Austin that has been derailed by legal challenges from the state. Employers in these cities should watch these, closely.
Paid family leave
The five states that currently have paid family leave policies are California, New Jersey, Rhode Island, New York, Washington and the District of Columbia.
New York, Washington and D.C. all have updates coming to their existing legislation, and Massachusetts will launch a new paid family program for employers in that state. In New York, the state’s paid family leave program went into effect in 2018 and included up to eight weeks of paid family leave for covered employees. This year, the paid leave time jumps to 10 weeks. Payroll deductions to fund the program also increased.
Washington’s paid family leave program will begin on January 1, 2020, but withholding for the program started on January 1 of this year. The program will include 12 weeks of paid family leave, 12 weeks of paid medical leave. If employees face multiple events in a year, they may be receive up to 16 weeks, and up to 18 weeks if they experience complications during pregnancy.
The paid family leave program in Massachusetts launches on January 1, 2021, with up to 12 weeks of paid leave to care for a family member or new child, 20 weeks of paid leave for personal medical issues and 26 weeks of leave for an emergency related to a family member’s military deployment. Payroll deductions for the program start on July 1.
The Paid Leave Act of Washington, D.C. will launch next year with eight weeks of parental leave to bond with a new child, six weeks of leave to care for an ill family member with a serious health condition and two weeks of medical leave to care for one’s own serious health condition. On July 1, the district will begin collecting taxes from employers, and paid leave benefits will be administered as of July 1, 2020.
Challenging times ahead
An employer must comply with all state and local sick and family leave laws, and ignorance of a law is not a defense. Employers must navigate different state guidelines and requirements for eligibility no matter how complex, including multi-state employers and companies with employees working remotely in different jurisdictions.
These state paid leave programs are funded by taxes, but employers must cover the costs of managing the work of employees who are out on leave. While generous paid leave policies can help employers attract talent, they simply don’t make sense for all companies. For example, it can be difficult for low-margin businesses to manage their workforces effectively when employees can take an extended paid leave.
Not only must employers ensure compliance with state and local rules, but they also must make sure that their sick time, family and parental leave policies are non-discriminatory and consistent with federal laws and regulations. That’s a lot to administer.
Employers should expect to see the changes in paid sick leave and family leave laws to continue. In the meantime, companies should make sure they have the people and internal processes in place right now to track these changes and ensure compliance across the board.
SOURCE: Starkman, J.; Johnson, D. (2 May 2019) "Changes are coming to paid leave. Here’s what employers should know" (Web Blog Post). Retrieved from https://www.benefitnews.com/opinion/what-employers-need-to-know-about-changing-paid-leave-laws?brief=00000152-14a7-d1cc-a5fa-7cffccf00000
Adulting’ benefits: Employers’ new solution to burned-out employees
Generation Z and Millennials are expected to make up 50 percent of the workforce by 2020, leading many to believe that “adulting” benefits could be the next big trend in employee benefits. Read this blog post from Employee Benefit News to learn more.
In a time when globetrotting Gen Z and Postmates-loving millennials are expected to make up 50% of the workforce by 2020, could benefits that help with “adulting” be the next big trend?
Adulting is defined as “the practice of behaving in a way characteristic of a responsible adult, especially the accomplishment of mundane but necessary tasks.” Although millennials and Gen Z are well into adulthood, the struggle for them to accomplish day-to-day life management tasks is very real.
Many bemoan feeling busy all the time, tired and even burned out. In her Buzzfeed post, “How millennials became the burnout generation,” author Anne Helen Peterson strikes a chord with her “errand paralysis” reference. Pants going unhemmed for over a year, packages sitting in the corner waiting to be mailed for months, a car that desperately needs vacuuming — all part of a long list of never-ending low-priority, mundane tasks that get chronically avoided, yet still add to mental stress and anxiety.
Peterson blames underlying burnout as the culprit, even calls burnout the “millennial condition” affecting everyone, from the “people patching together a retail job with unpredictable scheduling while driving Uber and arranging child care to the startup workers with fancy catered lunches, free laundry service, and 70-minute commutes.”
So can convenience benefits — such as onsite errand runners — help with this problem?
There’s no denying those benefits might take aim at a big problem: employee stress. According to the American Psychological Association’s annual Stress in America report, members of Gen Z report the worst mental health of any generation. Only 45% of those in Gen Z reported “excellent” or “very good” mental health, compared to 56% of millennials, 51% of Gen X individuals, 70% of baby boomers and 74% of adults older than 73. Additionally, 27% of Gen Z respondents called their mental health “fair” or “poor,” and 91% said they had felt physical or emotional symptoms, such as depression or anxiety, associated with stress.
While employers cannot solve all employee problems, they can go beyond the basics of competitive pay, comprehensive health insurance and career advancement opportunities. Forward-thinking employers can look to new convenience benefits to help simplify the mundane and incessant responsibilities of life, alleviate errand paralysis and give their employees back valuable time to actually live.
For instance, a number of companies—including a major law firm in Atlanta has an onsite errand runner who helps employees do everything from plan exotic vacation getaways, shop for Christmas presents and go on weekly Costco runs. The onsite errand runner is on call all day to take care of employees’ personal tasks so they can focus on work and clients. The reaction has been very positive, with employees saying the service helps them stay focused and physically present at work knowing that other things in their life are being handled capably. An added bonus: It helps employees better achieve work-life balance because errands are not cutting into their home life like it did before.
As more and more companies look to prioritize the employee experience and get creative with nontraditional benefits, it makes sense to consider growing trends in convenience and lifestyle benefits. For instance, providing an errand running benefit to pick up groceries for an employee or drop off that mailing package saves the employee countless hours, not to mention stress, and speaks to the challenges of the modern world.
SOURCE: Clark, A. (8 April 2019) "Adulting’ benefits: Employers’ new solution to burned-out employees" (Web Blog Post). Retrieved from https://www.benefitnews.com/opinion/employers-address-burnout-through-adulting-employee-benefits
7 ways employers can support employee caregivers
Seventy-three percent of employees in the United States act as caregivers for a child, parent or friend, according to research from Harvard Business School. Continue reading for seven ways employers can support employee caregivers.
The number of caregiving adults in the U.S. has reached a tipping point.
As the baby boomer generation gets older, an increasing number of people in the workforce are taking on the role of unpaid caregiver for a family member or friend. Many also are in the midst of raising their own children, which means they’re pulled in many different directions, trying to keep up with work commitments and family responsibilities. In fact, according to researchers at Harvard Business School, 73% of employees in the U.S. are caring for a child, parent or friend.
What do all these statistics point to? They mean that employers have an opportunity to play a role in helping employees balance these often competing priorities.
The Harvard study highlights the impact of employee caregiving responsibilities on the workplace. While only 24% of employers surveyed believed employee caregiving influenced their employees’ performance at work, 80% of the employees who were surveyed admitted that caregiving had an effect on their productivity at work and interfered with their ability to do their best work.
The survey also found that caregiving can affect employee retention, with 32% of the employees surveyed saying they had left a job because of their caregiving responsibilities. In addition, employees who are caregivers are more likely to miss work, arrive late or leave early, which affects not only productivity, but also the employees’ ability to progress in their careers.
Employers can take a proactive role in supporting employees who are caregivers. That support, in turn, can have a positive effect on productivity, morale and employee retention. Here are seven strategies employers should consider.
Create an organization-wide understanding of the challenges caregivers face.
Employees who aren’t sure that their managers and leaders would understand the juggling they’re doing and the stresses they face are more likely to not only have problems at work, but — because they face high stress levels trying to get everything done at home and work — they also are at higher risk for a number of health problems such as depression and heart disease. By creating a culture that allows employees to openly express their challenges and ask for support, employers can not only keep employees healthy and productive, they also can reduce secondary costs associated with decreased productivity and chronic health problems.
Know what challenges employees face.
Regular employee surveys can help employers assess employees’ needs in terms of caregiving and tailor the benefits the organization offers to help meet those needs.
Communicate the benefits that are available.
In many cases, employers already offer programs and benefits that can help employees who are caregivers such as an employee assistance program and referral services for finding caregivers who can help when the employee isn’t able to. However, many employees aren’t aware these programs are available, so it’s important to continuously share information about them in company newsletters, emails and at meetings.
Consider flex time and remote work options.
Depending on the employees’ work responsibilities, employers can offer flexible work arrangements that allow employees to work different hours or to telecommute for a certain number of days per week.
Change the approach to paid time off.
Rather than dividing paid time off into vacation days, sick days and personal days, consider grouping all time off into one category. That allows employees to take time off for caregiving as needed. A growing number of companies, including Adobe, Deloitte, Bristol-Meyers Squibb and Coca-Cola, are also offering paid family leave benefits so that employees can take time off to provide care.
Connect employees with resources.
Beyond an EAP and referral services, employers can offer programs that connect caregivers with resources for both their caregiving role and for the self-care they need to remain healthy and able to handle both job and caregiving roles better. Those resources can include:
Beyond an EAP and referral services, employers can offer programs that connect caregivers with resources for both their caregiving role and for the self-care they need to remain healthy and able to handle both job and caregiving roles better. Those resources can include:
- Advisory services that help employees connect with healthcare providers for their parents, children and themselves
- Nurse managers, case managers and geriatric care managers who can help employees who are managing the care of a family member who’s living with a serious health condition or disability
- Advocates who can help employees who are dealing with complex insurance claims for the person they care for, planning for long-term care, or managing the legal and financial complexities that can arise when a parent or spouse dies
Internal caregiver resources groups that bring together employees who are dealing with the issues surrounding caregiving so that they can share ideas and experiences
Measure how well your support is working.
The first step to supporting caregivers in the workforce is to implement policies, programs and benefits that offer them the tools they need to balance work and caregiving. An equally important second step is to regularly review what is offered, how much the offerings are used, and by which employees. Ask employees for feedback on how effectively what the organization provides is in helping them with issues they face as working caregivers and solicit ideas for new approaches and tools they’d like to have.
SOURCE: Varn, M. (25 March 2019) "7 ways employers can support employee caregivers" (Web Blog Post). Retrieved from https://www.benefitnews.com/list/7-ways-employers-can-support-employee-caregivers
To check or not to check: Managing blood sugar in diabetic employees
There's been a growing prevalence of Type 2 diabetes in the U.S. over the last 20 years. This chronic condition significantly impacts employees, their family members and even employers clinically and financially. Read this blog post to learn more.
Over the last 20 years, there’s been a growing prevalence in the U.S. of Type 2 diabetes, a chronic condition that significantly impacts employers, their employees and family members clinically, financially and through quality of life. With that comes an increase in the use of insulin for people with Type 2 diabetes to better control blood sugar to reduce long-term complications, which includes eye, kidney and cardiac disease, as well as neuropathic complications.
Most of these patients manage their condition with oral medicines versus insulin, and it’s estimated that 75% of patients with Type 2 diabetes regularly test their blood sugar, even though doing so may not be needed. Blood sugar testing is an important tool in managing diabetes as it can help a patient be more aware of their disease and potentially control it better. But it also can be painful, inconvenient and costly.
Blood sugar testing can be an important tool in managing diabetes, and there are two types of tests. The first is a test conducted at home by the patient that shows the blood sugar at a specific point in time. The second type is called HA1c (a measure of long-term blood sugar control) that shows the average blood sugar over the last two to three months. The value of at-home testing is now thought to be questionable.
In 2012, the Patient-Centered Outcomes Research Institute began a study to evaluate the value of daily blood sugar testing for people with Type 2 diabetes not taking insulin. The endpoint for the study was whether there was a difference in HA1c levels for those who did daily testing and those that did not. The conclusion of the study found that there were no significant differences between those two populations.
In response to these findings, the institute developed an initiative called Rethink the Strip that involves stakeholders including primary care practices, healthcare providers, patients, health plans, coalitions and employers. Given the cost for test strips and monitors for patients with Type 2 diabetes who test their blood sugar daily, it’s important to adopt an evidence-based patient-centered approach around the need for and frequency of self-monitoring of blood glucose.
As employees and employers cope with the costs associated with blood sugar testing, there are several strategies that should be considered to better manage this issue. They include:
1. Support shared decision-making. Like all interventions within healthcare, it’s important to weigh both the benefits and the risks of daily blood sugar testing in a thoughtful manner between the patient and their provider.
2. Managed benefit design. Employers should pay for daily blood sugar test strips in cases where it brings value (e.g., Type 1 and Type 2 patients who are taking insulin as well as patients that are either newly diagnosed or are going through a transition period, for example, post hospitalization or beginning a new medication regimen).
3. Involve vendors. To ensure alignment in all messaging to plan members, ask health systems and/or health plans and third-party vendors to align their communication, measurement and provider feedback strategies on when it’s appropriate for daily blood sugar testing.
These strategies can help employees with diabetes understand how their daily activities (nutrition, exercise and stress) and medications impact their condition. This benefits the employee in reaching treatment goals and feeling their best, while also helping employers and employees reduce the need for unnecessary and costly test strips.
SOURCE: Berger, J. (14 March 2019) "To check or not to check: Managing blood sugar in diabetic employees" (Web Blog Post). Retrieved from https://www.employeebenefitadviser.com/opinion/managing-blood-sugar-in-diabetic-employees?brief=00000152-146e-d1cc-a5fa-7cff8fee0000
7 ways to reduce stress this tax season
Does tax season leave you stressed out? Tax season is here, leaving many employers face-to-face with a number of demands. Continue reading this post from Employee Benefit News for seven ways employers can reduce stress during tax season.
Tax filing season is here, which means many employers will come face-to-face with a number of demands. Whether they do their own taxes, use online tax software or meet with a trusted tax adviser, there are many useful resources out there that will help employers work smarter, not harder.
Here are seven ways employers can reduce stress during tax season.
2019 U.S. Master Tax Guide
The U.S. Master Tax Guide contains timely and precise explanations of federal income taxes for individuals, partnerships and businesses. This guide contains information including tax tables, tax rates, checklists, special tax tables and explanatory text.
Legislative resources
Find a trusted, reputable resource for the latest news, opinions and laws regarding healthcare. Many companies in the industry have a designated section on their website that is dedicated to providing employers with updates and trends in the health insurance industry and how it will affect taxes.
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Payroll calculators
Employers can use payroll calculators to determine gross pay, withholdings, deductions, net pay after Social Security and Medicare and more. Calculator types include salary payroll calculators, hourly paycheck calculators, gross pay calculators, W-4 assistants, percentage bonus calculators and aggregate bonus calculators.
Keep, shred, toss
Now is the perfect time to organize tax records so that they’re easy to find in case they’re needed to apply for a loan, answer IRS questions or file an amended return.
The IRS has some helpful guidance you can share with your clients on what records to keep and for how long. They should remember to:
- Keep copies of tax returns and supporting documents for at least three years.
- Keep some documents for up to seven years.
- Keep healthcare information statements for at least three years. These include records of employer-provided coverage, premiums paid, advance payments of the premium tax credit received and type of coverage.
Make sure records are kept safe — but when it’s time, shred or destroy
Whether they consist of paper stacked in a shoebox, electronic files stored on a device or in the cloud, it’s important to safeguard all personal records, especially anything that lists Social Security numbers. Consumer Affairs recommends scanning paper and keeping records stored securely on a flash drive, CD or DVD.
It’s more important than ever for employers to keep personal information out of the hands of identity thieves. That means not tossing records in the trash or recycling bin. Home paper shredders are often inadequate for large piles of paper, but many communities have professional, secure document shredding services.
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Start as early as possible
A deadline looming always makes the situation more stressful. It’s very important for employers to not wait until the last minute to start their tax return. If they choose to use a tax professional, be sure that they get in early. Tax professionals take on many clients, and only have a short timeframe to get all the work done.
Be honest
It may be tempting for employers to tell a white lie on their taxes to maximize their tax breaks or return, but that comes at a great risk. If they are audited by the IRS, they will liable for whatever was reported.
SOURCE: Waletzki, T. (12 March 2019) "7 ways to reduce stress this tax season" (Web Blog Post). Retrieved from https://www.benefitnews.com/list/how-to-reduce-stress-this-tax-season?brief=00000152-14a5-d1cc-a5fa-7cff48fe0001
How to build a multigenerational benefits strategy
Employers and HR teams are now managing workforces that stretch across three to five different generations. Continue reading this blog post to learn more about why having a multigenerational benefits strategy is important.
Employers and HR teams are managing employees for a workforce that stretches across three to five generations. This workforce is complex, and its workers have varying needs from generation to generation. That’s why a multigenerational benefits strategy is in order.
Baby boomers preparing for retirement may have an ongoing relationship with doctors and a number of medical appointments in a given year. On the other hand, millennials and members of Generation Z— the latest generation to enter the workforce — may shy away from primary care doctors and focus more on options to pay off student loans and start saving for retirement.
Given these dynamics, it’s important that two separate departments, finance and HR, need to develop a benefits strategy that keeps costs as low as possible while being useful to employees. Finance leaders understand they need to retain employees — turnover is expensive — but they’re still interested in cost containment strategies.
Employers should approach their multigenerational benefits strategy on finding a balance between cost containment and employee engagement.
Cost containment
For the first time in six years, the number of employers offering only high-deductible health plans is set to drop 9%. But the idea of employee consumerism is here to stay as employers see modest rises in health insurance premiums.
To effectively contain costs, employers should first weigh the pros and cons of their funding model. While most companies start out with fully-insured models, employers should seriously evaluate a move toward self-funding. Sure, self-funding requires a larger appetite for risk, but it provides insight into claims and utilization data that you can leverage to make informed decisions about cost containment.
One way to move toward a self-funded model is with level-funding, which allows employers the benefit of claims data while paying a consistent premium each month. In a level-funded plan, employers work with a third-party administrator to determine their expected claims for the year. This number, plus administrative fees and stop-loss coverage, divided by 12, becomes the monthly premium.
A tiered contribution model might also help to contain costs without negatively affecting employees. In a typical benefit plan, employers cover a specific percentage and employees contribute the rest — say 90% and 10%, respectively. In a tiered contribution plan, employees with salaries under a certain dollar amount pay less than those high earners. That means your employee making $48,000 pays $50, while your employee making $112,000 pays more. It’s a way to distribute the contribution across the workforce that enables everyone to more easily shoulder the burden of rising healthcare costs.
Employee engagement
To create a roadmap that not only helps you gain control of your multigenerational benefits strategy but keeps employees of all ages happy, it’s necessary to consider employee engagement. While new options like student loan repayment could be useful to part of your workforce, it’s best to start much simpler with something that affects everyone: time away from work.
A more aggressive paid time off policy, telecommuting policies and paid family leave are becoming increasingly popular. Many companies are offering PTO just for employees to pursue charitable work — a benefit that resonates with younger workers and can improve company culture. And a generous telecommuting policy recognizes that employees have different needs and shows that employers understand their modern, diverse workforce. Beyond basic time away from work, an extended leave policy outside what the law guarantees is another tool that can keep employees engaged.
Making it easier for employees to get care is another trending benefit, which can keep employees happy and contribute to cost containment. Concierge telemedicine has been called the modern version of a doctor’s house call. This relatively inexpensive benefit provides your employees access to care 24/7 by phone or video chat, which is convenient regardless of the user’s generation.
Employees and other covered individuals can connect to a doctor to discuss symptoms and get advice, whether they are prescribed a medication or they need to seek further care. This is another benefit that’s useful for young workers who may not have a primary care doctor or older workers with families.
Finally, your tech-savvy workforce expects to access their plan information wherever they need it. Ensure your carrier offers a mobile app to house insurance cards, coverage and provider information.
When it comes to a multigenerational benefits strategy, creating harmony between finance and HR might seem like a daunting task. But considering some relatively small benefit changes could be what allows you to offer a benefits package that pleases both departments — and all of your employees.
SOURCE: Blemlek, G. (26 February 2019) "How to build a multigenerational benefits strategy" (Web Blog Post). Retrieved from https://www.employeebenefitadviser.com/opinion/how-to-build-a-multigenerational-benefits-strategy?brief=00000152-146e-d1cc-a5fa-7cff8fee0000
Younger generations driving lifestyle benefits
Millennials will make up seventy-five percent of the U.S. workforce by 2025, according to a study by Forbes. The self-confidence of younger generations is pushing companies to adopt more non-traditional benefits. Continue reading to learn more.
Younger generations are often characterized as entitled and demanding — but that self-confidence in their work is pushing companies to adopt benefits outside the traditional healthcare and retirement packages.
By 2025, millennials will make up 75% of the U.S. workforce, according to a study by Forbes. The first wave of Generation Z — millennials’ younger siblings — graduated college and entered the workforce last year. With these younger generations flooding the workplace, benefit advisers need to steer clients toward innovative benefits to attract and retain talent, according to panelists during a lifestyle benefits discussion at Workplace Benefits Renaissance, a broker convention hosted by Employee Benefit Adviser.
“Millennials came into the workforce with a level of entitlement — which is actually a good thing,” said Lindsay Ryan Bailey, founder and CEO of Fitpros, during the panel discussion. “They’re bringing their outside life into the workplace because they value being a well-rounded person.”
Catering benefits to younger generations doesn’t necessarily exclude the older ones, the panelists said, in a discussion led by Employee Benefit Adviser Associate Editor Caroline Hroncich. Older generations are accustomed to receiving traditional benefits, but that doesn’t mean they won’t appreciate new ones introduced by younger generations.
“Baby boomers put their heads down and get stuff done without asking for more — that’s just how they’ve always done things,” Bailey said. “But they see what millennials are getting and are demanding the same.”
In a job market where there are more vacant positions than available talent to fill them, the panelists said it’s important now, more than ever, to advise clients to pursue lifestyle benefits. While a comprehensive medical and retirement package is attractive, benefits that help employees live a more balanced life will attract and retain the best employees, the panelists said.
“Once you’ve taken care of their basic needs, have clients look at [lifestyle benefits],” said Dave Freedman, general manager of group plans at LegalZoom. “These benefits demonstrate to workers that the employer has their back.”
The most attractive lifestyle benefits are wellness centered, the panelists said. Wellness benefits include everything from gym memberships, maternity and paternity leave, flexible hours and experiences like acupuncture and facials. But no matter which program employers decide to offer, if it’s not easily accessible, employees won’t use it, the panel said.
“Traditional gym memberships can be a nightmare with all the paperwork,” said Paul O’Reilly-Hyland, CEO and founder of Zeamo, a digital company connecting users with gym memberships. “[Younger employees] want easy access and choices — they don’t want to be locked into contracts.
Freedman said brokers should suggest clients offer benefits catered to people based on life stages. He says there are four distinct stages: Starting out, planting roots, career growth and retirement. Providing benefits that help entry-level employees pay down student debt, buy their first car or rent their first apartment will give companies access to the best new talent.
To retain older employees, Freedman suggests offering programs to help employees buy their first house, in addition to offering time off to bond with their child when they start having families. The career growth phase is when most divorces happen and kids start going to college, Freedman said. Offering legal and financial planning services can help reduce employee burdens in these situations. And, of course, offering a comprehensive retirement plan is a great incentive for employees to stay with a company, Freedman said.
Clients may balk at the additional costs of implementing lifestyle benefits, but they help safeguard against low employee morale and job turnover. Replacing existing employees can cost companies significant amounts of money, the panelists said.
“Offering these benefits is a soft dollar investment,” Freedman said. “Studies show it helps companies save money, but employers have to be in the mindset that this is the right thing to do.”
SOURCE: Webster, K. (25 February 2019) "Younger generations driving lifestyle benefits" (Web Blog Post). Retrieved from https://www.employeebenefitadviser.com/news/younger-generations-driving-lifestyle-benefits?brief=00000152-1443-d1cc-a5fa-7cfba3c60000
Top 4 HR trends to watch this year
HR departments are now looking to implement innovative strategies to better engage employees and maximize productivity. Continue reading this blog post for the top HR trends of 2019.
HR professionals can no longer rest on their laurels. They are now looking to implement innovative strategies to better engage employees, improve the company’s brand both internally and externally, maximize productivity and increase the organization’s profitability.
So how can HR professionals go about making this happen? The success of HR will largely be based on staying nimble, evolving their organization’s policies and leveraging technological advances to ultimately reshape their workplace practices.
With that in mind, here are the top HR trends that will take center stage in 2019.
The gig economy and the importance of flexibility. The gig economy, which is comprised of individuals with short-term or temporary engagements with a company, is substantially important to employers. Here, workers are seeking increased flexibility and control over their work environments. Since many questions remain unanswered regarding worker classification issues and the application of existing laws in the gig economy, look for the Department of Labor to issue an opinion letter or guidance in 2019 detailing how a company may compliantly work within the gig economy and not run afoul of existing independent contractors.
Flexibility also is important for all employees — not just for the gig economy. While telecommuting and remote positions are not new, they are being emphasized again to better engage employees and increase retention metrics.
The tech effect on future of HR. The strategic and consistent use of workforce data analytics to predict and improve a company’s performance has exploded over the last several years, with additional momentum expected in 2019. While most HR professionals rely on metrics for basic recruiting and turnover rates, more in-depth analytics and trend spotting has become the norm.
Once trends are identified in, for example, turnover rates, an HR professional should have the tools to dive into the data and analyze root causes, such as the need for manager training, review of compensation strategies or a change in the company’s culture. Using predictive analytics in the HR space is helping companies make better informed, dynamic and wiser decisions based on historical data, as well as placing HR on the level of other data-driven company departments, such as finance and marketing.
The collection of this enormous amount of data also poses challenges and potential risks to companies, including negative perceptions among employees about how their data is being used, employee privacy laws and potential security breaches. Strong and comprehensive security policies, protocols and controls are necessary to ensure employers are keeping their employees’ data safe. In 2019, a steady flow of communications to employees regarding advanced security and usage policies is key to prevent data misuse or misunderstanding regarding how information is collected and used.
Artificial intelligence also will continue to be a significant focus driving improvement in the HR arena. Determining which data to collect, analyze and protect will provide opportunities for AI to assume a larger role in HR. Also, in some large organizations, AI already is being used for more than just automating repetitive HR tasks, such as onboarding new employees. The future of AI for most companies will include creating more personalized employee experiences as well as supporting critical decisions. From analyzing performance data to eliminating biases when screening candidates, AI will continue to be a pivotal HR tool.
Strategies for successful recruitment. Running an effective talent pipeline should be the objective of all hiring endeavors. Pipelining is consistently gaining traction as a recruitment tool for new employees. The concept employs marketing concepts to ensure that companies have a diverse group of strong recruits waiting to be hired. Pipelining reduces time to hire and leads to better quality candidates.
Health, wellness and adequate employee training. Another area of importance is multi-faceted wellness programs, which focus on an employee’s total well-being, from nutrition to financial wellness. These programs often include a comprehensive employee assistance program, training and activities during worktime. The training can focus on anything from physical health to development of employees’ knowledge base and technology-focused education. A greater emphasis also is being placed on workplace communication coaching, such as collaboration and negotiation, which are critical to success in the workplace.
Continued training and heightened prevention of sexual harassment and discrimination will be another trend this year. Organizations big and small must ensure that compliant policies are in place and employees are trained on the policies. Several states including California, New York, Connecticut and Maine already mandate that private employers must provide harassment training to workers, and the number of states requiring this training is expected to increase in the coming years.
SOURCE: Seltzer, M. (29 January 2019) "Top 4 HR trends to watch this year" (Web Blog Post). Retrieved from https://www.benefitnews.com/opinion/top-4-hr-trends-to-watch-this-year?feed=00000152-a2fb-d118-ab57-b3ff6e310000
It’s a job applicant’s market: What it means for employee benefits
How do you attract top talent in today’s hiring landscape? Stock options and paid holidays may no longer be enough to attract top talent in today's competitive hiring landscape. Continue reading to learn more.
When it comes to employee benefits, stock options and paid holidays may no longer be enough to attract top talent — especially in today’s competitive hiring landscape.
With job openings on the rise, it has become more difficult for companies to compete for the most talented, highly sought-after candidates. The strong labor market also means more Americans are willing to quit their current job in favor of something better — in fact, this past year, employees voluntarily left jobs at the highest rate since 2001.
Comprehensive employee benefits packages have never been more important for employers looking to hire the best and brightest. Studies have shown as many as 60% of people cite benefits as a major deciding factor when considering whether to accept a job offer. The question is: What kinds of benefits are employees looking for most?
Of course, there are some benefits that have become commonplace among employers, including health and dental insurance, retirement plans and paid time off. However, these incentives may just be table stakes in the hiring game these days — for example, nearly half of privately owned firms in the United States offer health insurance, and 79% of Americans work for an employer sponsoring a 401(k)-style retirement plan.
Although many employees have come to expect benefits like health insurance and retirement plans, employers don’t need to go above and beyond as many larger companies, like Google, do — offering free meals and on-site haircuts. Flashy perks may seem appealing on the surface, but in reality, employees are seeking benefits that support them through — and help alleviate the stress that can come with — life’s major moments.
This kind of support can come in a number of forms. For example, many companies have seen their employees push for more comprehensive parental leave benefits, giving new parents time they need to refresh and bond with their child. While many countries around the world offer more than a year of paid parental leave, the U.S. doesn’t guarantee paid time off for new parents, and the national average for parents taking time off after having a child is only 10 weeks.
Employees may want to feel empowered to further their education or professional development, helping to bolster their confidence in their career. Starbucks is a proponent of this. To help employees take their education to the next level, the company offers full tuition reimbursement for online degrees through Arizona State University.
These benefits are great, but don’t cover all aspects of life where employees need support. For example, if an employee finds themselves in a situation where they need to care for an elderly parent, family leave may not be enough — especially as they find themselves navigating complicated Medicare/Medicaid documents and nursing home or hospice payments. Particularly in situations that pack on a lot of additional stress, companies can provide comprehensive financial wellness plans as a way to give their workforce peace of mind.
Financial wellness plans are an emerging area of employee benefits and provide assistance with everything from estate planning, to advice from certified personal accountants, to identity theft protection. There’s a clear demand for these services, too. PWC’s 2018 financial wellness survey found that over 50% of employees are stressed about their finances and want help.
Financial wellness plans don’t just offer practical benefits, but emotional benefits as well. Most people don’t realize how many instances in life, big or small, require some form of financial guidance, and without any professional support, these matters can be intensely stressful. Whether an employee is creating a prenuptial agreement, taking out a mortgage when buying their first house, or trying to navigate student loans when sending their child to college, knowing their company provides support and counsel for these situations alleviates the associated pressure. Employees want to know their employers can help them tackle anything life throws at them.
Ultimately, employees have come to expect benefits and perks providing coverage for all stages of life — whether they’re planning to have a child, want to take time to get their degree or are beginning to think about estate planning on top of traditional retirement planning. To attract and retain the best talent in 2019, employers should think first and foremost about how they can support their workforce in achieving financial wellness.
SOURCE: Freedman, D. (22 January 2019) "It’s a job applicant’s market: What it means for employee benefits" (Web Blog Post). Retrieved from https://www.benefitnews.com/opinion/its-a-job-applicants-market-what-it-means-for-employee-benefits
Free snacks won’t retain workers long term. Here’s what will
According to the Society for Human Resource Management (SHRM), 32 percent of employers offer company-paid snacks and beverages to their employees. Read on for information on what will retain workers long term.
Free snacks at work can help workers curb late afternoon hunger — but will employees be more inclined to stick around because the office has free food? Probably not, according to a report from recruiting and staffing firm The Execu Search Group.
Offering free snacks at work seems like a good way to attract and retain workers, but it is a misconception that millennials, the largest generation in the workforce, want the benefit, the report says.
The trend of offering free snacks to workers started with big Silicon Valley tech companies — like Facebook and Google — and spread to employers of all sizes across the U.S. According to research from the Society for Human Resource Management, 32% of employers offer company-paid snacks and beverages to employees, up significantly from last year, when 22% offered them.
Free snacks can be a great addition to the office, but only if an employer offers others substantive benefits, says Edward Fleischman, CEO of The Execu Search Group. On its own, he adds, food offers little value.
“[Free food] is great. But some companies are using it as an incentive to keep people there — and that’s not going to keep people there,” he says.
Instead of offering small perks like snacks, the report says that if a company wants to retain millennial workers, it should offer benefits that allow greater work flexibility, more vacation time, training and development, and opportunities to make a difference. In particular, employers should consider instituting benefits like a flexible work schedule and unlimited paid time off, Fleischman says.
“That’s a keyword now — flexibility,” he says. “The flexibility to work from home when they need to, or want to.”
Millennials, in particular, he says, want the ability to work whenever and wherever they want. While there might be initial concern that allowing employees to work from home means they won’t be as productive, this isn’t the case. Millennials are very connected to their devices and will typically respond even after work hours are over, Fleischman says.
“They’ll respond on their iPhone at 11 o’clock at night. They may be at a restaurant, but they’ll respond to you,” he says.
Making changes like adding an unlimited PTO policy or a flexible work schedule could be difficult for legacy companies to institute, Fleischman says. It often requires trust that employees won’t abuse the policy. Additionally, older generations and executives may be used to stricter PTO policies, so it could require an adjustment, he adds.
But more companies are taking the plunge to offer these kinds of benefits. The number of employers offering unlimited PTO jumped from 1% in 2014 to 5% in 2018, according to SHRM. Employers including General Electric, Dropbox and Grant Thornton all offer the benefit, according to Glassdoor.
Fleischman says that in a competitive labor market, benefits are a key factor to recruiting and retaining a solid workforce. If a company is not offering solid benefits, it could mean the difference between accepting a job and looking elsewhere.
“As a company, you have to really set yourself up nicely to recruit that person and retain that person,” he says.
SOURCE: Hroncich, C. (28 January 2019) "Free snacks won’t retain workers long term. Here’s what will" (Web Blog Post). Retrieved from https://www.benefitnews.com/news/free-snacks-wont-retain-workers-long-term-heres-what-will?brief=00000152-14a7-d1cc-a5fa-7cffccf00000