Employees Look to HR to Evaluate COVID-19 Data Before Reopening
Many employers are looking at the opportunity to allow employees to return to their workplace, but before returning many are asking and reaching out to their HR departments to look and rely on local, state, and federal data in order to make a safe transition back into office. Read this blog post to learn more.
When national staffing and recruitment firm Addison Group began putting in place the necessary measures to reopen the company's offices in Texas, Peg Buchenroth, senior vice president of human resources, relied on local, state and federal data to make the transition.
The company's employees switched to remote work during the week of March 16. Since then, Buchenroth and her colleagues have been monitoring coronavirus cases in Texas, where the numbers are changing fast.
Recent data from Texas health authorities demonstrates why it's important for human resource managers to follow infection and hospitalization rates in different geographies.
According to Texas Department of State Health Services data, nearly 75,000 people tested positive for the coronavirus in the first week of June and more than 1,800 people died of COVID-19. As of July 19, nearly 4,000 people had died from COVID-19 in the state, and the death toll is expected to rise further as reported cases have climbed to over 330,000.
Texas Health and Human Services has posted a warning on its website: "Please note that all data are provisional and subject to change. Probable cases are not included in the total case numbers."
Texas Gov. Greg Abbott began clearing the way for businesses to reopen in May to restart the state's economy but had to roll back those plans after COVID-19 deaths began to rise. In the midst of this, the Addison Group reopened its San Antonio/Houston offices on May 4, its Dallas location on May 18 and its Austin facility on May 20. The company closed its Texas offices for the July 4 holiday and has kept them closed as it considers what to do next.
"While we successfully opened our Texas offices in May for employees who wanted to return to in-person work, we've decided to close these locations and will monitor the situation in case we need to reassess," Buchenroth said. "The safety of our employees remains Addison Group's top priority, and we will continue to leverage federal, state and local data to inform any future decisions."
She said employees who return to the office will need to adhere to Centers for Disease Control and Prevention guidelines, such as wearing a mask and maintaining 6 feet of physical distance from others.
"We want to make sure that employees feel safe when they return to the office," Buchenroth said.
She added that the company takes into consideration the many factors that can influence an employee's decision to return to the office, including child care needs, elder care responsibilities, and serious underlying medical conditions that put individuals at high risk of developing a severe illness from COVID-19.
Coronavirus and COVID-19
Using Data to Inform Reopening
As more businesses reopen, employers will have to decide if going to the office is safe based on the data received from local health authorities. Insight from that data will determine how employers will design their workspaces to allow for adequate social distancing within an office, how many workers will be allowed in the office at a time and whether remote work will continue for the foreseeable future.
John Dooney, an HR Knowledge Advisor at the Society for Human Resource Management, said he has noticed an increase in the number of inquiries from HR professionals about new federal, state and local measures and how to safely reopen businesses. He added that while health officials have gained a better understanding of the coronavirus during the past four months, there is still a lot more to learn.
"The pandemic is evolving, and we haven't had the luxury of time to get the information we need," Dooney said. "I think it's important for HR managers to continually review data from authoritative resources."
HR needs to be aware of the changes states are making as they reverse previous decisions on reopening their economies given increasing coronavirus infections and death rates in states like Arizona, Florida and Texas. The current crisis, Dooney said, should prompt HR professionals to be more involved with their senior leadership teams in the decision-making process.
"HR executives should work with senior managers to come up with the best ideas that protect their employees," Dooney advised. "The leadership team should be looking at not only how to maintain the business, but also how to implement adequate protections."
Employers' responses will also depend on the work environment at each company. Hospitals, supermarkets, pharmacies and delivery services, for example, need employees at their worksites; many knowledge-based businesses, however, are better-suited to rely on remote workers.
Gavin Morton, head of people and financial operations at HR.com, said as discrepancies arise in the actual number of coronavirus infections and deaths caused by COVID-19, employees will want to know that their employers have seen the data, considered it carefully and are concerned about workers' safety.
"We all want to know exactly what's going on, but it is very difficult for medical professionals and coroners to quickly ascribe deaths to COVID-19 or other causes," Morton said. "It is logical that there are both more cases and more infections than are being reported, since the testing numbers are still relatively low, and we may not know for years what the true impact has been."
Morton added that employers are in a powerful position to reduce their employees' anxiety. "Employers need to read carefully to understand what the reliable facts are and use them to inform their employees rather than alarm them. Clarity, calm and honesty go a long way," he said.
Morton said HR professionals should consider and educate the leadership team in two key areas:
- How this information impacts the business and employees. Some data could have little to no impact on a company, depending on such factors as location and type of business, while other information could have a severe impact. An outbreak of cases in a city four hours away may not worry the organization's local employees, but if someone's parents live in that city, he or she may be personally very concerned.
- Employee sentiment. It is critical to understand how employees are feeling and how new data can affect their confidence in their safety.
Contact tracing, new coronavirus cases, new hospitalizations, and increases or drops in the number of people dying from COVID-19 will be critical data that will contribute to HR managers' planning.
Human resource professionals should remember, too, that the data are interrelated.
For example, Morton noted that while an increase in deaths reported is alarming, it doesn't necessarily mean that there are more cases; similarly, falling death rates may not mean that transmission today is low. Information about deaths is only one piece of the puzzle.
Developing measures to secure the safety and encourage the performance of employees during the second half of the year won't be easy, especially if there is suspicion that federal, state and local information on the COVID-19 crisis isn't accurate.
"The numbers are really important, and companies need to pay close attention to information which impacts their employees and their customers," Morton said. "While the data can help guide their decisions, HR leaders and company leaders still need to interpret the data. This is true for any information, and so the uncertainty around death reporting is no different. Company leaders need to use their best judgment based on their knowledge of their business, employees and customers."
SOURCE: Lewis, N. (20 July 2020) "Employees Look to HR to Evaluate COVID-19 Data Before Reopening" (Web Blog Post). Retrieved from https://www.shrm.org/resourcesandtools/hr-topics/technology/pages/hr-evaluate-covid19-data-before-reopening.aspx
Overview of COVID-19 Law and Guidance for Health and Welfare Plans
The business operations of many small and large companies have been significantly affected due to the coronavirus pandemic. During this time, health and benefit plans are also being affected. Read this blog post to learn more.
The COVID-19 pandemic has significantly affected the business operations of small and large employers alike. To mitigate the harm from the pandemic to employers, the government has enacted major legislation and issued numerous guidance in the past few months pertaining to COVID-19, including rules that address various aspects of employee benefits.
This article provides an overview of significant COVID-19 legislation and guidance related to employer-sponsored health and welfare benefit plans that has been enacted or issued to date.
Some of these changes are mandatory for group health plans. Other are optional. Employers should carefully review these rules to determine any compliance obligations as well as any opportunities to benefit their businesses and respective employees.
Mandated Coverage of COVID-19 Testing (Mandatory)
Effective March 18, 2020 and until the end of the national emergency period for COVID-19, the Families First Coronavirus Response Act (FFCRA) requires group health plans to cover:
- COVID-19 diagnostic testing.
- Certain items and services that result in an order for, or administration of, the testing.
Plans must provide this coverage without imposing any requirements for cost-sharing, prior authorization, or medical management.
CARES ACT
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act), which was signed into law on March 27, 2020, amended the FFCRA's coverage mandate to:
- Expand the scope of COVID-19 diagnostic tests that must be covered.
- Include rules regarding the rate at which a plan must reimburse a health care provider for the mandated services.
- Require coverage of preventive services and vaccines for COVID-19 as of 15 days after such a service or vaccine is given an "A" or "B" rating in a recommendation by the U.S. Centers for Disease Control and Prevention (CDC) or U.S. Preventive Services Task Force.
ADDITIONAL GUIDANCE
On April 11, 2020, the FFCRA and CARES Act FAQs provided additional information about this COVID-19 mandate. Items included details on required coverage of COVID-19 antibody tests, rules regarding required disclosures of the new coverage to plan participants, and which items and services related to COVID-19 testing must be covered by a plan.
Continuation of Health Benefits During Certain Leaves of Absence (Mandatory)
The FFCRA also requires (with some exceptions) employers with fewer than 500 employees to provide certain paid sick leave and family and medical leave related to certain COVID-19 reasons, as follows:
- Paid sick leave. An applicable employer must provide two weeks of emergency paid sick leave (EPSL) to an employee who is unable to work (or telework) due to certain reasons related to COVID-19. Reasons include quarantining of an employee (due to a Federal, state or local order or advice from a health care provider) experiencing COVID-19 symptoms, caring for an individual who is quarantined, and caring for a child under age 18 whose school or child care provider is closed.
- Family and medical leave. The employer must also provide up to twelve weeks of expanded Family Medical and Leave Act (FMLA) leave (ten of which is paid) for an employee who has been employed for at least 30 days and who is unable to work (or telework) due to a bona fide need for leave to care for a child whose school or child care provider is closed or unavailable for reasons related to COVID-19.
During FMLA leave, an employer is required to allow the employee to continue his or her group health coverage at the same premium rate as that of active employees. The DOL has also issued FAQs stating that employers must continue employees' coverage during EPSL, as well. Note, there are also implications for retirement plans under the FFCRA and CARES Act. Although those retirement plan rules are not discussed in this article, some of the CARES Act rules are conceptually similar for retirement plans (e.g., 401(k) plans may allow participants to take "Coronavirus-related" 401(k) plan distributions due to certain COVID-19 reasons).
High-Deductible Health Plans and Health Savings Accounts (Optional)
IRS GUIDANCE
IRS Notice 2020-15 (March 11, 2020), which was issued prior to passage of the FFCRA and CARES Act, provided that a high-deductible health plan (HDHP) will not lose its HDHP status if it covers COVID-19 testing and treatment before the statutory minimum HDHP deductible is met. Therefore, the plan can cover those COVID-19 related services without causing participants to be ineligible to contribute to a health savings account (HSA). IRS Notice 2020-29 (May 12, 2020) clarified that the provisions in Notice 2020-15 apply to an HDHP's reimbursement of expenses incurred on and after January 1, 2020.
CARES ACT
The CARES Act amended the HSA rules to provide that, for plan years before December 31, 2021, an HDHP does not lose its HSA-eligible status if it covers telehealth and other remote healthcare services before the HDHP deductible is met. This CARES Act provision is broader than the IRS Notices, as it provides that an HDHP can cover telehealth services regardless of whether the services are related to COVID-19. The CARES Act also allows participants to use their HSAs, health flexible spending accounts (FSAs), and health reimbursement arrangements (HRAs) to pay for certain over-the-counter drugs without a prescription as well as certain menstrual care products.
Extended Form 5500 Filing Deadline for Certain Plans (Optional)
IRS Notice 2020-23 (April 9, 2020) extended certain deadlines for a plan to file the required annual Form 5500. Under Notice 2020-23, the Form 5500 deadline was extended to July 15, 2020 for any plan whose plan year ended in September, October, or November 2019 (or any plan that was given a filing extension between April 1 and July 15, 2020). Ordinarily, a plan must file its Form 5500 (absent an extension) by the last day of the seventh month following the end of the plan year.
Relief for Certain Disclosures Required by ERISA (Optional)
EBSA Disaster Relief Notice 2020-01, which was issued by the DOL on April 28, 2020, extended the deadlines for plans to provide certain notices and disclosures under Title I of the Employee Retirement Income Security Act of 1974 (ERISA). Under Notice 2020-01, a plan will not be treated as violating ERISA if it fails to timely furnish a notice, disclosure, or document required by Title I of ERISA between March 1, 2020 and 60 days after the announced end of the national emergency declaration for COVID-19. The plan fiduciary, however, must act in good faith to furnish the notice, disclosure, or document as soon as administratively practicable. For this purpose, a plan fiduciary can meet the "good faith" standard by furnishing a document electronically if it reasonably believes that the recipient has access to electronic communication.
Extensions of Certain Plan Deadlines (Mandatory)
A joint notice issued by the DOL and IRS (published May 4, 2020) required group health plans to extend certain timeframes for participants during the "outbreak period" (defined as the period from March 1, 2020 until 60 days after the announced end of the national emergency for COVID-19). Those plans are required to disregard the outbreak period for purposes of determining the following periods and dates:
- The 30-day/60-day special enrollment period under the Health Insurance Portability and Accountability Act (HIPAA).
- The 60-day deadline for a qualified beneficiary to elect continuation coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA).
- The deadlines for a COBRA qualified beneficiary to pay his or her required COBRA premiums.
- The deadline for an individual to notify the plan of COBRA certain qualifying events (e.g., divorce).
- The deadlines for a participant to file benefit claims, appeals, and external review requests with the plan (or to perfect an external review request).
Because of this joint notice, a group health plan must essentially "pause" the above deadlines during the outbreak period. For example, if an individual experienced a COBRA qualifying event on March 1, 2020, the individual would have until 60 days after the end of the outbreak period (rather than 60 days after March 1) to elect COBRA coverage. This is because the joint notice requires a group health plan to pause the 60-day timeframe for COBRA elections during the outbreak period. Also, because the joint notice was issued on May 4 and is retroactive to March 1, plans may be required to re-process previous claim denials that were based on a participant's failure to meet one of the above deadlines between March 1 and May 4.
Cafeteria Plans and Flexible Spending Accounts (Optional)
2020 MIDYEAR ELECTION CHANGES
IRS Notice 2020-29 (May 12, 2020) relaxed the rules regarding cafeteria plan pre-tax elections in light of the COVID-19 pandemic. Under Notice 2020-20, employers may (but are not required to) amend their cafeteria plans to allow participants to make the following mid-year, pre-tax election changes in 2020:
- An election to enroll in the health plan by an eligible employee who previously declined coverage (e.g., someone who waived coverage during open enrollment).
- An election to change plan options (e.g., from an HMO to a PPO) or add dependents.
- An election to drop coverage by a participant.
- An election to enroll in or drop health FSA or dependent care FSA coverage or to increase or decrease health FSA or dependent care FSA contributions.
An employer that wishes to adopt any of all of the above cafeteria plan changes must disclose the changes to employees and amend its cafeteria plan by no later than Dec. 31, 2020 (i.e., an amendment is not required in advance of making the changes).
EXTENDED GRACE PERIOD TO INCUR FSA CLAIMS AND INCREASE OF MAXIMUM HEALTH FSA CARRYOVER AMOUNT
Notice 2020-29 also permits employers to amend their health and dependent care FSAs to allow employees to incur eligible claims through the end of the 2020 calendar year for any FSA plan year (or for any FSA grace period that ends in 2020). For example, if a health FSA has a grace period until March 15, 2020 for a participant to incur eligible claims for the 2019 plan year, the FSA can allow participants to incur expenses through 2020 and use their 2019 elections to pay for those expenses.
This change does not apply to FSAs with a carryover provision. IRS Notice 2020-33 (May 14, 2020), however, provides for a permanent FSA carryover increase based upon annual indexing. For the 2020 plan year, employers may amend a cafeteria plan with carryover provision to allow participants to carry over up to $550 in unused health account balances in the 2021 plan year. An employer that adopts the extended FSA grace periods or the increased carryover limit must amend its cafeteria plan or FSA (as applicable) by no later than December 31, 2021.
Tax-Free Payment of Employees' Student Loans (Optional)
The CARES Act amended Section 127 of the Internal Revenue Code (education assistance programs) to permit employers to pay up to $5,250 of an employee's student loans on a tax-free basis. This provision applies from the date of enactment of the CARES Act (March 27, 2020) through the end of 2020. The payment must be for either the principal or interest of a qualifying education loan incurred by the employee, and the employer can make payment either directly to the lender or as a reimbursement to the employee.
Takeaways for Employers
As employers grapple with the impact of the COVID-19 pandemic and return to normal business operations, it is important for them to be aware of their compliance obligations under the FFCRA, CARES Act and other guidance issued by governmental agencies. Employers should also carefully review the guidance and legislation for potential avenues of benefit for their business and employees.
Additional guidance for both mandatory and optional items is likely forthcoming as well, and COVID-19 continues to have a major impact on both companies and individuals as new infections spike in numerous states. Accordingly, employers would be well-advised to keep a close eye out for new legislation and guidance in the coming months and periodically evaluate their benefits programs for compliance and competitive considerations.
SOURCE Tyler Hall, A.; Schillinger, E. (16 July 2020) "Overview of COVID-19 Law and Guidance for Health and Welfare Plans" (Web Blog Post). Retrieved from https://www.shrm.org/resourcesandtools/hr-topics/benefits/pages/overview-of-covid-19-legislation-and-guidance-for-benefits-plans.aspx
How Hospitals Can Meet the Needs of Non-Covid Patients During the Pandemic
As there has been many waves of coronavirus cases for many months, health care has seemed to only point to helping those who have been impacted by the virus. Although there are still many cases that test positive for the virus, there has been a dramatic decline in other non-COVID related health issues. Read this blog post to learn more.
During the initial wave of the Covid-19 pandemic, hospitals worldwide diverted resources from routine inpatient critical care and outpatient clinics to meet the surge in demand. Because of the resulting resource constraints and fear of infection, clinicians and non-Covid patients deferred “non-urgent” visits, evaluations, diagnostics, surgeries and therapeutics. Indeed, early in the pandemic physicians and leading public health officials noted a dramatic decline in non-Covid-related health emergencies, including upwards of a 60% decrease in patients with acute myocardial infarctions and strokes.
Drawing on key principles from operations management and applying a health-systems perspective, we propose four strategies to facilitate care of non-Covid patients even as hospitals are stretched to absorb waves of patients with Covid-19.
1. Innovate outpatient management to reduce demand at downstream bottlenecks.
To reduce future bottlenecks in emergency departments (EDs) and hospitals, outpatient clinicians should expand their proactive management of patients at high risk of needing acute or inpatient services, such as those with poorly managed hypertension or diabetes, and triage patients with acute needs to EDs now in order to reduce more serious complications later. This will help reduce potential future spikes in demand on EDs and inpatient beds from non-Covid patients.
While most clinicians have rapidly adopted some form of telemedicine, they will need to increase their digital engagement with high-risk patients in a more targeted fashion. Clinicians should evaluate their patient panels to identify high-risk individuals and initiate telemedicine visits, rather than relying on patients to initiate contact, similar to the process for proactive disease management used by several community health care organizations.
Although high-risk patients will vary by specialty, targeted populations may include patients recently discharged from the hospital and those at high risk for hospitalization, including those with uncontrolled heart failure or active malignancy. To facilitate remote patient monitoring of high-risk patients, clinicians may opt to send telehealth kits tailored to patients’ medical and technological needs. These kits may include connected health devices such as blood pressure monitors, pulse oximeters, and heart rate monitors, and even mobile technology devices such as tablets or smart phones. To most effectively leverage telemedicine during the pandemic, clinicians must also promote multidisciplinary virtual collaboration across primary care clinicians, specialists, social workers, home health clinicians, administrative support, and patients and their caregivers.
2. Combine essential non-Covid inpatient services across hospitals.
To balance demand across hospitals, public health officials should apply a version of the logistics strategy known as “location pooling,” combining demands from multiple locations. Rather than each hospital in a region redundantly providing the full suite of essential inpatient non-Covid clinical services, each of these services should be concentrated at one location. For example, each region should have a single designated cancer center, transplant center, stroke center, and trauma center. Implementing this strategy is fraught with challenges as hospitals are currently organized independently and compete with one another for patients and revenue. Nevertheless, during the initial Covid-19 wave, several hospitals in Boston collaborated to share data on the availability of hospital beds to efficiently route patients based on their clinical need and the available capacity. And centralization of acute stroke care, in which patients are taken to central specialty hospitals rather than the nearest hospital, demonstrates both the feasibility and potential improved outcomes of utilizing this approach in several countries including the United States, Canada, the Netherlands, Denmark, and Australia.
Crises require all possible realizations of economies of scale. Location pooling mitigates variability in service-specific demand faced by each hospital. As demand falls for specific non-Covid services at an individual hospital (e.g., for acute stroke care), hospital administrators can close those services and repurpose the specialty capacity to care of Covid-19 patients with underlying conditions, as discussed below. If all hospitals implement this strategy, not all non-Covid services will be available at every hospital. However, location pooling draws demand from across hospitals, ensuring that as a given hospital loses some patients it gains others, allowing it to maintain sufficient census to remain fiscally viable.
Centrally coordinated regional organization, similar to mass casualty planning, is critical to ensure that each essential service remains fully operational for routine emergencies, while adapting to dynamic changes in the region’s hospital capacity. The number of hospitals to include in location pooling should be determined by weighing the tradeoff of efficiency gains from pooling across more locations versus inefficiencies from increased travel time incurred by patients and emergency medical services.
3. Group hospitalized Covid-19 patients by their underlying clinical conditions.
At the same time that hospitals should be location-pooling specialty services for non-Covid patients, to the extent possible they should place their Covid-19 patients who have serious underlying health issues (e.g., cardiac conditions) with other Covid-19 patients with the same condition. In each of these “cohorted wards,” redeployed clinical staff from the relevant specialty service, such as cardiology, can provide essential specialty care alongside clinicians addressing patients’ Covid-specific care needs.
While such cohorting limits efficiency gains from pooling all Covid-19 patients in one ward, it maintains specialty care for patients who still need it while reducing the additional inpatient capacity strain resulting from patients being dispersed across the hospital. Indeed, prior research demonstrates that displacing patients from cohorted specialty units is associated with prolonged hospital length of stay and more frequent readmissions.
4. Discharge patients into post-acute care based on Covid-19 status.
Nursing home, rehabilitation hospital, and long-term acute care facility leadership should collaborate to establish separate regional, specialized, post-acute care facilities for Covid-19 and non-Covid patients. Sending patients to specialized post-acute care facilities based on their Covid-19 status will facilitate discharge planning, improving patient flow out of the hospital for Covid-19 and non-Covid patients alike. This will relieve strain at ED and hospital bottlenecks while maintaining care quality. Furthermore, having dedicated post-acute care facilities for Covid-19 patients will preserve post-acute care capacity for those recovering from non-Covid illnesses, while lowering their risk of becoming infected.
Challenges to this model include ensuring timely access to Covid-19 testing and rapid test results to guide appropriate patient routing. To prevent discharge delays due to testing constraints, hospitals need to implement rapid tests more widely, and post-acute care facilities should designate quarantine areas for patients to receive care while awaiting results.
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These strategies will undoubtedly be challenging to implement. But now is the time to rethink health care delivery and adopt operations management strategies with demonstrated success that are most promising. This will allow us to be better prepared for future waves of the Covid-19 pandemic.
SOURCE; Song, H.; Ezaz, G.; Greysen, S. Ryan.; Halpern, S.; Kohn, R. (14 July 2020) "How Hospitals Can Meet the Needs of Non-Covid Patients During the Pandemic" (Web Blog Post). Retrieved from https://hbr.org/2020/07/how-hospitals-can-meet-the-needs-of-non-covid-patients-during-the-pandemic
Navigating the New Normal in International Business Travel
The coronavirus pandemic has placed many restrictions on travel for both leisure and business. As parts begin to open up and lift certain regulations, organizations are now looking at travel for the business, and if those are possibilities once again. Read this blog post to learn more.
What can your company expect in terms of your employees' ability to travel internationally as parts of the world begin to come out of months of lockdown?
And what will the ongoing restrictions and changes in everyday life mean for your company's ability to transfer or hire new foreign national talent in key areas? Only time will tell exactly what will happen, but we are beginning to see patterns and hints of what is to come.
Some countries that have managed to flatten the curve of COVID-19 infections are gradually easing restrictions on freedom of movement and commerce. This is typically being undertaken cautiously and in a multistep fashion. Other countries have been slower to ease travel restrictions. A broad travel ban remains in place in China, and countries in Latin America continue to extend travel limitations with a wary eye on the outbreak in Brazil.
International travel restrictions on freedom of movement are being eased, albeit more slowly than domestic restrictions. We expect that the easing of international travel restrictions will be incremental in nature as the easing of domestic restrictions has been. We also expect that quarantine requirements for arriving travelers are likely to be put into place in many locations, significantly hampering international business travel.
Arriving travelers are also likely to be questioned more closely than in the past regarding their recent travels, health, reasons for visiting and plans for satisfying quarantine requirements. Although the primary purpose of the vetting may be to limit the spread of COVID-19, an unintended consequence may be that the purpose of the visit and whether the traveler has the correct documentation is scrutinized more closely than in the past. If the traveler is attempting to enter to engage in productive or remunerated work—which often includes consulting, commissioning, installing, troubleshooting and, in some countries, even training or audit activities—without the proper work visa, they are likely to be identified and denied entry.
Governmental migration authorities around the world are beginning to either ramp back up where they were operating at limited capacity or to reopen where they were shut down completely. But although many facilities are ramping up and/or reopening, significant backlogs of applications exist. Many government offices and consulates are encouraging or requiring contactless submissions via post or even e-mail.
The New Normal: A Long-Term Perspective
Looking ahead, it is somewhat challenging to predict what will happen in the global immigration space given that we do not yet know how long the pandemic will drag on. The longer it continues, the more different our new global immigration normal is likely to be. What is already clear is that even if a vaccine or effective remedy for COVID-19 is developed, things are unlikely to go back to "normal" as we knew it before the pandemic. So, what will the new normal look like for your company?
Rise in Remote Work—Decrease in Global Mobility
Many companies have discovered the ability to conduct business remotely, including across borders. What used to require an international business trip (with the corresponding time, costs and visas) now takes place via conference call. Where you used to relocate key staff across borders to facilitate teams working together in person, you likely have now discovered that with everyone working remotely, it may not matter whether your newest team member is physically sitting in Canada, China or France.
New Challenges for Essential Travel
Despite the rise in remote work, technology can't replace all short- or long-term global movement of employees. Some work—installing or commissioning equipment, quality control on a production line, testing of systems and more—simply cannot be done via conference call. If your company has employees who must travel for business purposes, those employees will likely continue to encounter quarantine requirements until the pandemic has been resolved. This means your employees traveling for work will need to provide evidence that they will quarantine for 14 days following arrival, before attending their meetings and/or work duties.
In the past, citizens of privileged countries, such as the U.S., have often enjoyed a low level of scrutiny at ports of entry and have been able to avoid issues when traveling for work purposes without a visa. In fact, before the pandemic, your company's employees may have been previously accustomed to traveling to certain countries with just their passport and no visa. Under the new normal, we anticipate that all international travelers will be subjected to increased scrutiny on entry through the destination country's customs and immigration process. This means your employees are more likely to need to secure a visa in advance of any foreign travel. For this reason, it will be important for you to verify immigration requirements with the most recent information well in advance of your employee's planned travel date. After all, the last thing you want is for your employee to experience the unpleasant surprise of being denied entry or prevented from boarding a flight.
New Challenges for Long-Term Relocation and Local Hires
While it is true for some industries that it does not matter whether a new hire is sitting in Canada, China or France, for others, it absolutely matters. It is probably impossible for a manager to supervise a manufacturing facility via Zoom. Unfortunately, it is likely that companies seeking to transfer or hire foreign nationals will face increased hurdles, even beyond the immediate travel-related hurdles posed by COVID-19 travel restrictions. As unemployment numbers have soared, we have already seen a significant political backlash against immigrants in the U.S. Even putting aside any politically or economically motivated reduction of work visa numbers, the labor market reality of having millions of citizens out of work will make it extremely difficult to pursue work visas that require labor market testing. This would include Labour Market Impact Assessment work permits in Canada, Tier 2 General work visas in the U.K., and Subclass 482 work visas in Australia, among others.
Mitigating Negative Impacts: Preparation and Strategy
It is hard to imagine how any company, let alone a company with global operations and travel needs, could avoid the negative impact of the pandemic. Here are a few ways your company can mitigate (rather than eliminate) the negative impacts:
- Raise awareness. Your company and your employees are likely to face many obstacles that you are not accustomed to, whether it is a requirement that employees add 14 days to a business trip to accommodate a mandatory quarantine period, the need to obtain visas in advance of travel where they previously could travel without one, or delaying many months before starting a new position while waiting for a work visa approval. It is crucial that all key stakeholders within your company are made aware that immigration is not business as usual. Stakeholders include not only HR and legal personnel but also company managers and recruiters. To the extent that employees can book international travel without managerial approval, it may be prudent to disseminate policies and information to all employees regardless of level. Requirements for travel, transfer and new hires alike must be checked before business commitments and plans are made or contracts with clients are signed. We recommend providing both written and video training to ensure that managers and other employees outside of legal and HR who may not be familiar with immigration concepts have both an opportunity to ask questions and reference materials to refer to in the future.
- Conduct quarterly planning. In countries where international transfers or hiring of foreign nationals is not prevented by political and labor market challenges, it will be important for your company to plan well in advance for any transfer or new hire. It is likely that the process of obtaining the necessary work visa and/or permit will be slower for some time given the COVID-19-related backlogs. Even where the immigration process itself is not slower than usual, it may take significantly more time to procure the corporate and personal documents (such as birth certificates, marriage certificates and university diplomas) that often must be included in visa applications. It is also possible that there will be more requirements that must be satisfied to obtain the visa, such as medical exams and negative COVID-19 tests. Given this, we strongly recommend that your company plan as far in advance as possible. Although it is not always possible to anticipate all business needs, it is a best practice to work to identify upcoming assignments or new hires on a quarterly basis. We have seen that having a policy and schedule in place with the relevant managers and recruiters can go a long way to reducing last-minute immigration surprises. As part of this plan, before committing to a client contract or signing an employment contract, companies should confirm with their immigration counsel or another trusted source that the employee is able to qualify for the necessary visa and the timeline involved.
- Implement a global mobility management system. While we have always recommended that companies with global mobility needs have an organized way to track and manage the global movement of their employees, the pandemic has greatly increased the need for such a system. Many companies were caught off guard by the fast-moving pandemic and did not know where their employees were in the world, when their visas were expiring or how they were going to get them home again. Having a centralized system will certainly not solve all your problems, but it will at least equip your company with the information and tools needed to make informed decisions. A "system" does not necessarily mean the very latest and most expensive software for managing global mobility, but rather, some sort of functional, organized method by which to vet and track travel, international transfers and new foreign national hires, along with a clear company global mobility policy.
SOURCE: Lustgarten, A. (08 July 2020) "Navigating the New Normal in International Business Travel" (Web Blog Post). Retrieved from https://www.shrm.org/resourcesandtools/hr-topics/talent-acquisition/pages/navigating-new-normal-international-business-travel.aspx
Recruitment Research: A New Way to Find Top Talent
Many HR leaders and hiring managers want what is best for their organization. Prior to the year 2020 starting, a main and common goal was to attract and retain the top talent in their industries. Read this blog post to learn more.
Attracting and retaining top talent was the prevailing crisis for company leaders and HR heading into 2020. That was before a deadly virus wreaked havoc on the nation's economy and the unemployment rate went from a historic low to the highest since the Great Depression. COVID-19 has left millions of Americans out of work, yet some companies are still in a hiring mode. The challenge for hiring managers now is that they must wade through mounds of resumes to find the perfect candidate, and they must do it with a much smaller recruitment budget.
"For many companies, revenues are down, but there are still critical positions to fill," said Kathleen Duffy, president and CEO of Duffy Group, Inc., a global sourcing and recruitment firm based in Phoenix. What may come as a surprise is that some jobs are still tough to fill, she said.
Before the health crisis, companies addressed the talent shortfall by stockpiling high-demand workers with specific skill sets, even if there were no jobs available for them. This included a large percentage of hiring managers—about 77 percent—who hired for positions that did not exist a year earlier, according to research by Korn Ferry.
"Whether in traditional industries such as home health care or technology, or emerging fields like baby tech, CBD products or selfie services, there still don't seem to be enough qualified candidates to go around," Duffy said.
One way to combat the problem is for hiring managers to re-evaluate how they recruit candidates. That means considering approaches beyond adding more in-house recruiters, as well as contracting for retained and contingency searches. One often-overlooked alternative that has emerged in the last decade is recruitment research.
Recruitment Research Defined
An offshoot of the executive search industry, recruitment research is a multistep methodology that targets desired candidates and connects them with employers using a flexible pricing model.
"The process is equal parts detective and skilled salesperson," Duffy said. "It begins with taking a deep dive into the company and its business, and ends with a list of interested, qualified candidates."
At the core of the process is strategy, according to Marcia Mintz, CEO of the Boys & Girls Clubs of Metropolitan Phoenix. When Mintz was hired to lead the organization four years ago, she had two key positions to fill immediately. "I needed to see a diverse pool of candidates with fundraising and staff coaching experience," she said.
Because the internal environment of Boys & Girls Clubs was changing, it was imperative to find leaders who not only had the skills to do the job, but whose personalities would fit into the new culture. The recruitment team leveraged its network to identify passive candidates at top local competitors and nonprofits in other parts of the nation, Mintz said.
"Ultimately, the process helped us increase the scope and quality of candidates while providing a highly cost-efficient alternative to traditional recruitment," she said.
The Building Blocks
Part art and part science, recruitment research entails some key steps. The foundation is a sourcing strategy, which includes an in-depth situation assessment to understand the culture and personality of the hiring company, along with the job's requirements, responsibilities and specific skill set needed. Using a comprehensive intake form, the recruitment team collects data about the company's recruiting targets, geographic preferences, salary and compensation levels, communication expectations, and industry-specific vernacular.
Next comes name generation. Armed with information from the hiring manager and others, the recruiter can identify candidates whose backgrounds, education and experiences dovetail with their company's needs. This is accomplished using a variety of methods, from cold-calling and Internet tools to probing professional organizations, trade shows and chambers of commerce. The goal is to find not only people who are looking for new careers but also those passive candidates who may not be looking at all.
"It's important to think outside of the box," said Victoria McCoy, former executive vice president of organizational strategy at the global information technology company Cyberscout in Cranston, R.I. "That means knowing where the best talent is working today, whether it is at one of your competitors or in another role at your company."
List in hand, the recruitment team is then ready to contact and prequalify candidates as part of the recruitment candidate vetting. Duffy said it is important to create sizzle around why potential hires should consider the opportunity. "In addition to courting the candidate, this is also the time to ask some all-important questions, including their interest in relocating to a particular area, if they have the right education and experience, and if they have a genuine interest in the job the client is trying to fill," she said.
Duffy's firm may search as many as 100 candidates for one position and then present the top three to five most qualified and fully screened candidates for interviews. These candidates are typically seen within 15 days of the start of the search. That's important, given that recruitment research takes a different approach to finding top talent, using a model based on billable hours, much like a CPA or an attorney.
The final step—presentation and reporting—gives hiring leaders a recap of the results and a database of all candidates for the open position that they can keep on hand for future searches.
Recruitment research isn't limited to outside recruitment firms. Internal company hiring managers have the institutional knowledge to use recruitment research effectively as well.
"They should apply the same elements of the process, starting by learning all they can about the company or the business unit for which they are hiring," Duffy said. "And they should put themselves in the candidate's shoes to create a story that will pique interest in the position and differentiate their company from competitors."
Whether internally, externally or as a collaboration, recruitment research can be a cost-effective, efficient approach to helping companies find their next new hire.
SOURCE: Magruder, J. (01 July 2020) "Recruitment Research: A New Way to Find Top Talent" (Web Blog Post). Retrieved from https://www.shrm.org/resourcesandtools/hr-topics/talent-acquisition/pages/recruitment-research-a-new-way-to-find-top-talent.aspx
As Jobs Disappear, Employees Hang On to What They Have
As the coronavirus pandemic has caused many to lose their jobs, some still have been able to hold onto their job that they had prior to the pandemic. Those who have been fortunate enough to keep that job, are now holding onto it. Read this blog post to learn more.
Employees spooked by continuing high unemployment are holding on to the jobs they have at rates not seen in nearly a decade.
While typically a sign of employee loyalty, low turnover these days can also signal fear, hopelessness and stagnation. Employers can head off those negative feelings and maintain morale and energy in the workplace by communicating with empathy and giving employees more control over decisions, experts say.
"Feeling trapped in a job can create a lot of challenges, leading to employee disengagement and burnout," said Dennis Baltzley, global head of leadership development at organizational consultancy Korn Ferry. Channeling that angst into helping the company meet the challenges of the coronavirus pandemic can improve engagement and the bottom line, he said.
'Quits Rate' Plummets
According to the Job Openings and Labor Turnover Summary, a monthly report compiled by the U.S. Bureau of Labor Statistics, employees spent the past few years job hopping at historically high rates as the economy and their confidence in the future soared. Then in March 2020, the quits rate—which is the number of jobs quit that month divided by total employment—dipped below 2 for the first time in five years. It fell further to 1.4 in April, the lowest level since April 2011, when the job market was still recovering from the Great Recession.
Typically, quits outnumber layoffs by a wide margin, according to the federal data. But that trend reversed itself in a big way in March 2020, as states began issuing stay-at-home orders to counter the coronavirus pandemic. That month, 11.5 million employees were laid off while only 2.8 million quit their jobs.
In April 2020, another 7.7 million employees were laid off while just 1.8 million quit voluntarily. Meanwhile, only 3.5 million employees were hired into new jobs in April, a low for the 20-year series.
"Right now, most employees are just looking to hang on to the work they do have, rather than trying to find something better. This is particularly true of people in the retail and hospitality industries, areas that have been hit hardest by the coronavirus-led recession," according to an analysis of the data by Quartz. "The weak job market means more people are stuck in jobs that don't fully take advantage of their talents and are generally less satisfied."
Don't Assume Everyone Is Fine
Even if asked directly, employees afraid of losing their jobs aren't likely to express their unhappiness to supervisors. Baltzley recalled a chief executive who marveled at the high satisfaction scores from employees in a recent pulse survey. "I told him, 'They're not fine, they're just not telling you,' " he said. "People put on a brave face. They're going to be grateful to have a job. They will work hard to keep that job, sometimes in unhealthy ways."
To break through that fear and foster a healthier environment, Baltzley recommended that employers:
- Give employees choices when possible to restore some sense of control. This could include the question of working from home. Employees have a range of feelings about returning to the workplace, with some eager to rejoin colleagues while others dread the thought of increased exposure. "You don't want people to feel it's a requirement if it doesn't have to be. If you give people a choice, you relieve the pressure of feeling trapped."
- Listen and watch carefully to evaluate how employees are feeling, because they're not likely to tell you. "Are people short of patience, uncommunicative, not addressing the big picture? That could be a sign of being overwhelmed. If you're carefully listening, you can usually tell where people are."
- Don't double down on control by monitoring remote workers. "You have a bunch of leaders who never had to manage people remotely. They might instinctively want more meetings, more reports, to be sure employees are working, but that is exactly the opposite of what you should do. You want people trying to figure out how to make things happen without you. If they're problem solving, they're more engaged. Otherwise, you will create a workforce that's waiting for instruction."
- Project empathy, even if employees don't indicate they need it. Leaders can do this by describing what's been difficult or challenging for them during the pandemic. "During a crisis, communication is not about providing information. It's about connection."
- Work hard to maintain the new level of trust that may have developed during the past few months of shared hardship. "This experience has broken down a bunch of barriers. You don't want to lose that."
Many Still in Survival Mode
In normal times, the lack of potential for advancement or promotion could lead to employee resentment. But Kimberly Prescott, a human resources consultant in Columbia, Md., who works with a range of small and mid-sized employers, said it's too soon to worry about that.
Prescott noted that safety is one of the most basic needs in Maslow's five-tier hierarchy of motivation. Until a sense of security and safety is restored, most employees won't have the bandwidth to worry much about their status or feelings of accomplishment.
"I think people are happy to have a job right now, based on what I've been hearing," she said. "Job satisfaction at this point is secondary to survival. People are still kind of holding their breath. We're in survival mode: 'I'm alive. I have a job. I have food to eat.' "
To help restore a sense of security and alleviate stress on their workers, employers should go out of their way to communicate the status of the business and what they are doing to ensure the company's survival. This is especially true for employees who've been furloughed and are waiting to be called back.
"This is the time for overcommunicating," Prescott said. "People are hungry for meaningful communication, especially around next steps and business plans. You cannot communicate too much, even if you're saying the same thing week after week. Even if it's just a survey asking how you're feeling, are you able to come back to work?"
SOURCE: Cleeland, N. (02 July 2020) "As Jobs Disappear, Employees Hang On to What They Have" (Web Blog Post). Retrieved from https://www.shrm.org/resourcesandtools/hr-topics/employee-relations/pages/afraid-to-leave-job-covid.aspx
A new tool for employee temperature checks ensures safety and security of workers
As employers begin to move employees back into the workplace, they have to be mindful of new legal guidance that has come from the CDC and HIPAA. In regards to new legal guidelines set into place, employers and management teams will now have to check employee temperatures. Read this blog post to learn more.
Temperature checks will be mandated at workplaces once employees return to the office, due to legal guidance from the Centers for Disease Control and Prevention, but privacy concerns could heat up among workers concerned for their security.
“It’s now permissible to take employee temperatures, but if employers store it and keep track of it, there’s no exemption from HIPAA and identity laws,” says Dan Clarke, president of IntraEdge — an Arizona-based tech company.
IntraEdge developed a kiosk that privately takes employees’ temperatures, and only shares the results with the employee, keeping any health information concealed from HR. Instead, managers are simply notified if the kiosk gave their employee permission to enter the office, or not, which completely eliminates the potential for HIPAA violations, Clarke says. The kiosk, called Janus, can also prevent sick employees from entering the office if their temperature is too high.
Clarke spoke in a recent interview about how Janus can help employers protect their workforce, while adhering to privacy laws.
How does Janus help prevent the spread of COVID-19?
If we want to limit exposure to COVID-19, we can’t assign someone in the office to take everyone’s temperature; it’s not efficient and it puts more people at risk. Employers need a digital solution, one that puts them in compliance with HIPAA and privacy laws.
Janus uses an accurate thermal camera to take the temperature of the user. Before using it, employees would need to sign up online and provide information to confirm their identity. After that’s done, they’d go to the kiosk and present their identification through their phone. The kiosk will ask them a few questions about how they’re feeling and the camera will take their temperature. The normal temperature range for each employee is personalized based on the individual’s age and medical history. Many people don’t realize our normal temperature increases as we age. If an employee reads at an unhealthy temperature, they’re not allowed inside the office.
How does this help employers stay compliant with HIPAA and other privacy laws?
Employers don’t have access to their worker’s medical history, or the temperatures read by Janus. The kiosk doesn’t display an employee’s temperature on screen. Instead, the employee will receive a text message telling them their temperature and whether they’re allowed inside the office. Printouts are also available for employees who don’t have smartphones.
Is HR or a manager notified when employees aren’t allowed in the office?
Janus doesn’t share with HR what employees’ temperatures were, only if they were given a “yes” or “no” to enter the office. They can receive a text message whenever an employee is given a “no.” This helps employers stay compliant with HIPAA and privacy laws because they never see the full results, and they’re not stored. But it also helps them keep track of their workforce.
It can also be programmed to notify a security officer that someone didn’t pass the temperature check to ensure compliance. We can also program the kiosk to distribute security badges only to employees who pass the temperature check.
Before coronavirus, employees sometimes came to work sick out of fear their colleagues/managers would question their dedication to their job. Do you think this product will help change that after the crisis is over?
I think the crisis is changing the perception of remote work enough that people will be comfortable saying they’re going to work from home when they don’t feel well. Janus can definitely help enforce it, if the employer chooses, but we wanted to ensure it was useful for employers after the crisis is over. It can also be used to clock employees in and out for work and as office security.
SOURCE: Webster, K. (08 June 2020) "A new tool for employee temperature checks ensures safety and security of workers" (Web Blog Post). Retrieved from https://www.employeebenefitadviser.com/news/a-new-tool-for-employee-temperature-checks-ensures-safety-and-security-of-workers
Best tools to support your remote workforce
The coronavirus pandemic has brought many strains onto the workforce, and some are caused by the fact that employees are now having to work from home. Although working from home can come with benefits, it can also create challenges that weren't noticed before. Read this blog post to learn more.
The remote workplace comes with a lot of benefits — including increased productivity and better focus. But it’s also causing challenges to both employees’ mental and physical well-being.
Disruptions from the coronavirus have infiltrated the daily lives of employees. Everything from proper nutrition to child care and financial concerns are major focus points to many.
Many companies are now stepping up their efforts to adapt their benefit offerings to support employees who work from home. Employers are considering options like work-from-home office policies and stipends, ergonomic workplaces at home or mental health and telemedicine checks.
From virtual fitness memberships and snack boxes to tech tools and online wellness resources, here are some of the best tools employers can provide to support their remote workforce.
Free food at home
While almost everyone is working from home, many employees have lost a popular office perk – free food. That’s why Stadium, a New York City-based group lunch delivery company, introduced a new service in early June where employers can have snacks delivered nationwide to any home office. The service, called SnackMagic, lets employees choose individual snacks and beverages that they like within a gift budget set by the employer.
The coronavirus has also exacerbated the challenge of accessing healthy food and proper nutrition for many across the United States. To address those concerns, meal subscription company Freshly created a new service called Freshly for Business to provide healthy and affordable meals for employees working remotely. The program allows employers to offer free or subsidized meal plans consisting of up to 12 meals per week. Employers including PwC and KPMG, among others, are partnering with Freshly, which costs an average of $8 per meal per employee.
Mindfulness and stress management
As a result of these circumstances, Unplug Meditation, a Los Angeles-based drop-in meditation studio and app, is seeing a surge in corporate programs, and has partnered with companies including Disney, Mattel and Google. The app offers everything from virtual meditation and sound bath sessions, to team building, stress management and customized wellness programs.
Chill Anywhere, a mindfulness and meditation app, is built specifically for the workforce, and provides live mindfulness video practices. It can be offered as an employee benefit or part of an organization's Employee Assistance Program. App users can track their mood before and after each session to see how their mindfulness practice impacts their day-to-day lives.
Financial wellness
As the pandemic sends shockwaves through the U.S. labor market with layoffs, pay cuts and furloughs, employers are making efforts to support the financial security and resiliency of their employees.
SmartPath, a financial counseling platform, launched a free online resource called the Money Moves Quiz to help employees build confidence and a secure financial plan by answering 15 questions about their current situation. The questions cover topics such as levels of emergency savings, home ownership or employment status. Based on the answers, SmartPath will provide a clear financial plan tailored to the employee’s needs.
In March, Alegeus, a consumer-directed healthcare solutions company, introduced a new offering called the Employee Care Card, a debit card that enables employers to offer targeted financial support for employees to address their most immediate needs during the pandemic. Employers determine the amount they wish to contribute per employee, as well as the type of eligible expenses they want to allow — from groceries and home office supplies to educational supplies. Unlike cash or gift cards, employers control how the dollars can be spent, preserve unspent dollars and gain real-time insight into employee spending trends.
As head of an HR tech company and mother of two and CEO from another employee benefits firm, felt the effects of this firsthand. That’s why she decided to offer Outschool.com, an online education platform for children ages 3 to 18, as a benefit to her employees. Outschool offers classes on subjects ranging from life skills, arts and music, to math, coding and science.
Screen Sitters, a virtual child care service connecting sitters with families to entertain children via live 1:1 video, is another service offering overextended working parents some relief. Employers can get flexible packages that integrate into their existing benefits programs. All of the company’s sitters are vetted through a 5-point screening process to ensure safety and a hassle-free transaction for the parents. Children get a personalized experience, as the sitter plans sessions ahead of time based on each child’s personal interests.
This summer, a virtual camp experience is what many facilities and families are choosing to keep their kids safe. Anna Birch, a 23-year summer camp veteran has replaced her usual summer adventure camp programs with an online alternative. The new resource, called The Camp Cloud, provides children ages 6 to 17 with the opportunity to make new friends and engage in guided activities led by institutions like science centers, museums, zoos and aquariums, schools and theaters, without need for significant parental assistance.
Team building
Summer is typically a time when companies plan team outings, parties and activities to give employees an opportunity to bond outside the office. But with COVID-19 taking a toll on group activities, many of those events are now cancelled.
HealthKick, a corporate wellness program, provides a personal well-being hub for companies and their employees to participate from home. From using in-home workout services to taking cooking classes over Skype with meal delivery kits, teams can take advantage of many different activities this summer that they can do together from their new work-from-home offices.
Mental health resources
Employee mental health is a workplace crisis, with many employees experiencing increased anxiety and depression during the pandemic. To address care accessibility issues — including in-person sessions and treatment — imposed by COVID-19, many employers are offering employees access to mental health care online.
Healthstat, a provider of virtual employer-sponsored health centers, is offering a virtual mental health solution, Ment4Me, that helps employers improve access to high quality mental health services for employees who are seeking support for treatable mental health conditions. Ment4Me aims to help reduce the stigma that can often be associated with mental illness. It’s also using artificial intelligence to offer the chatbot “Tess,” a provider of on-demand mental health support.
Mental health benefits provide Happify Health has designed a new program for employees and health plan members to remotely access mental health resources to meet the recent surge in demand. Happify Connect is a part of the organization’s selfcare platform and allows employees to connect with mental health care that is more conducive to the current work-from-home environment. The program directs employees to mental health resources, including self-guided tools within the Happify platform, higher-touch care through integrated partners such as online therapy and a mental health provider directory.
Supportive, a mental wellness support platform, offers 24/7 chat-based peer support on any emotional well-being topic ranging from depression, anxiety and loneliness to daily life struggles like parenting, relationship conflicts or stress and burnout. Users answer the question "what's your struggle?" for Supportiv to analyze and auto-match them to a small group of peers who relate. Each group has a live moderator to guide the chat, make sure each user's needs are met, and vet the personalized resources that appear as hyperlinks in real-time. It can be deployed as a dedicated web link, integrated into an EAP, or embedded as a chat window that appears on any existing benefits portal.
Physical well-being
With gym closures disrupting wellness benefit offerings as well as employees’ workout routines, employers are now looking to virtual solutions.
Earlier this spring, Virgin Pulse, a global provider of digital wellness and wellbeing solutions, launched a dedicated COVID-19 hub to provide employees with resources — ranging from webinars to blog posts — on fitness and nutrition. It aims to help employees build and maintain healthy routines by reducing stress, staying active, being productive, eating healthy and sleeping well. The hub is a resource app for Virgin Pulse users, but also gives free access to health and wellbeing content, programs and resources.
BurnAlong is an online video health and wellness platform where employees can take classes from a network of hundreds of instructors across 45 categories ranging from cardio and yoga to stress, chronic conditions and diabetes. They can take classes alone, or invite friends and colleagues to join them live online for social motivation. The platform, which is used by companies, hospitals, insurers and brokers, is partnered with on-site and local gyms, studios, instructors and wellness professionals to help people achieve their health and wellness goals.
An ergonomic workplace
With employees using everything from their kitchen table to their couch as their workplace, working from home sometimes brings bad ergonomic habits and solutions.
Bad ergonomic habits, if left unaddressed, could mean higher healthcare costs for the employer, lower productivity and the increased potential for an employee to sustain a medical condition.
To be mindful of employees’ who don't work out of an office too, some employers are reimbursing them for remote office furniture.
Livongo, a digital health services company, is offering its remote workers reimbursement for ergonomic and job essential furniture. With the whole company being remote during the pandemic, the office furniture reimbursement benefit was extended to all employees to help make their home offices more efficient. Even before the pandemic, Livongo had a strong remote workforce with more than 1/3 of its employees working remotely. The company says taking the time to set up a workplace that is safe, comfortable and limited from distractions is important for employees to help manage their time and well-being.
SOURCE: Nedlund, E. (19 June 2020) "Best tools to support your remote workforce" (Web Blog Post). Retrieved from https://www.employeebenefitadviser.com/list/best-tools-to-support-your-remote-workforce
How COVID-19 could be a financial wellness springboard
Although the coronavirus pandemic has brought many implications to watch during these times, health isn't the only thing. Many businesses could use COVID-19 as a way to monitor their financial wellness. Read this blog post to learn more.
Physical health isn’t the only thing to monitor during the COVID-19 pandemic, according to recent studies, which suggest the fate of businesses could depend on an ability to use financial wellness initiatives to restructure their financial and cultural mindset.
But what is financial wellness, and what can businesses do to cultivate it?
To enjoy financial wellness is to have control over daily and monthly finances, be able to meet financial goals, have enough rainy day money to survive an emergency and be able to splurge a little, according to the Consumer Financial Protection Bureau.
Of course, at this stage in the COVID-19 crisis, it’s all about step one — staying afloat day-to-day — according to Neil Lloyd, who heads Mercer’s US DC and financial wellness research.
But as the workforce gradually returns, there’ll be opportunities for major reinvention, the way Lloyd sees it.
“I think this is a time when you can look back at your benefits and say, ‘Well, given what we just learned, is there a better way to structure benefits that meet the needs of people?’ ” Lloyd said. “Because this is going to be in people’s minds. They’re not going to forget it in six months’ time.”
For some organizations, that might mean introducing an emergency savings account option to cover unexpected events, or providing tools that help staff understand and build their credit scores — widely expected to take a tumble in the coming months.
Why bother with financial wellness?
Even before COVID-19, 67% of employees reported feeling personally stressed, according to PwC’s 2019 employee financial wellness survey, which found 57% had less than $1,000 in emergency savings and 49% struggled to meet their financial obligations each month.
Those kinds of money worries are a bane for productivity, morale and turnover, according to the Retirement Advisor Council, which says the best way to reduce stress in the workforce is to tackle employee’s financial problems at their source.
Likewise, Mercer’s 2020 global talent trends survey of 7,300 senior business executives, HR leaders and employees across nine industries concluded that economics and empathy can and should coexist.
Though an organization’s ability to survive and expand depends on the talent and engagement of its workforce, Mercer found 63% feel at risk of burnout. And though 78% of employees said they want long-term financial planning, only 23% of companies said they provide it.
That means COVID-19 and its aftermath could present an opportunity for human resources departments to step up.
“Employers are also going to have a lot on their minds, so it’s going to be quite tough,” Lloyd said. “But ideally, try and see what you can learn from what we’ve just been through. What were all those stresses and strains that your people had? Maybe survey them and talk to them. Learn from this.”
Financial wellness initiatives only became popular about five years ago, according to Lloyd, who said Mercer’s latest survey suggests a change in the winds. While executives used to focus on the financial returns for each initiative, Lloyd says they’re developing a new understanding that, “If you look after your people well, they will ultimately look after you.”
“When we were talking to clients, what tended to happen quite quickly was, ‘Let me see the return on investment for financial wellness.’ I.e., ‘I put a dollar in here, what do I get back?’ Lloyd said. “People are beginning to not look at it like that.”
How to increase financial wellness
There’s plenty of room for financial wellness initiatives in 2020, according to Mercer, as its survey revealed only 29% of HR leaders have a health and wellbeing strategy in place, even though 61% of employees said they trusted their employer to look after their wellbeing and 48% of executives labeled it a top concern.
Offerings could range from group training sessions or one-on-one consultations to online resources or classes aimed at helping employees budget, save and manage debt, or even buy their first home. They might also help establish emergency funds, automatically enroll staff in retirement plans and open benefits up to all family members.
Mission: Money outlines six steps to establishing a financial wellness program — starting with deciphering the root causes of money woes. For some, it might be credit card or student loan debt, while for others it could be health care or retirement plan savings.
That information, coupled with an organization’s business objectives, is what employers should base their offerings on.
Above all, Lloyd says every initiative should build financial confidence, as opposed to unwittingly tearing it down. That means placing less emphasis on where an employee started and more on celebrating what they’ve achieved.
“It doesn’t help to say to somebody, ‘We did a financial literacy test and you scored 35%,’ when everybody knows 35% is bad. That can actually make somebody feel a lot worse about things,” Lloyd said. “Avoid getting into that situation where people think they’re a failure and want to avoid this topic. Rather, ensure that whatever we do in the financial wellness side is empowering and makes people more confident to keep on engaging with financial issues.”
Crucially, as employee needs, business objectives and markets change, so should financial wellness strategies. “Financial wellness is not something we’ve had 30, 40 years of success with, so you have to be prepared to try something new,” Lloyd said. “There’s a very good chance something’s not going to work, and you change it. That’s the process.”
SOURCE: Lean, R. (30 April 2020) "How COVID-19 could be a financial wellness springboard" (Web Blog Post). Retrieved from https://www.benefitspro.com/2020/04/30/how-covid-19-could-be-a-financial-wellness-springboard/
U.S. Health Care Is in Flux. Here’s What Employers Should Do.
The coronavirus pandemic has brought uncertainty in many areas of day-to-day lives and is now bringing uncertainty into health care. Read this blog post to learn more.
Emergencies naturally draw our attention — and our resources — to the present. The U.S. response to Covid-19 is no exception. Yet the problems exposed by the pandemic point to the urgent need to prepare now for the next waves of this crisis, including new clusters of infection and new crises of debt and scarcity. They also highlight the opportunity to develop a more resilient health system for the future. Employers can and should play a central role in this effort.
For employers, this period of exceptional economic strain has exacerbated the longstanding challenges of managing the health care costs of their employees. The future course of the disease and economy may be uncertain. But businesses that are rigorous in the way they purchase health care benefits, leverage digital health technologies, and partner with hospitals and physicians will be able to better manage an expected roller coaster in health care costs and premiums.
Dealing with Covid-19 itself is expensive: Covered California estimated that the costs to test, treat, and care for Covid-19 patients this year will be between $34 billion and $251 billion; America’s Health Insurance Plans predicts the cost will total $56 billion to $556 billion over a two-year period. Yet the total costs of U.S. health care this year will likely drop due to the postponement or cancellation of regular clinical services and elective procedures due to the virus. According to one estimate, Americans may spend anywhere from $75 billion to $575 billion less than expected on health care this year. Another actuarial firm projects that self-insured employers may see a 4% reduction in their employees’ health costs this year.
Nonetheless, health insurance premiums for employers are expected to rise in 2021. An analysis by Covered California projected that nationally, premiums will increase between 4% and 40% — and possibly more. Recent filings with the District of Columbia’s Department of Insurance, Securities and Banking related to the individual market and small groups for 2021 show that Aetna filed for an average increase of 7.4% for health maintenance organization (HMO) plans and 38% for preferred provider organization (PPO) plans, while UnitedHealth proposed an average increase of 17.4% for its two HMOs and 11.4% for its PPO plans.
What explains this projection of higher premiums in 2021? Will second and third waves of Covid-19 lead to more expensive intensive-care unit and hospital stays? Will patients flood clinics for the hip replacements, cataract operations, and other “non-urgent” services they delayed during the lockdown? Will hospitals try to charge commercial insurers more to compensate for their losses in 2020?
The answer to all these questions is a definite “maybe.” Ironically, the fundamental reason rates are expected to rise is the cost of uncertainty itself. And the situation may only get murkier if the pandemic resurges.
Even if premiums stay as they are, employers may still be unable to afford them amid plummeting revenues. Before Covid-19, premiums for employer-sponsored plans had been consistently outpacing inflation. In 2019, the Kaiser Family Foundation reported that the average annual premium for employer-sponsored health insurance was a whopping $20,576 for a family of four (and $7,188 for an individual) — a 54% increase over the previous 10 years. That dwarfs the average inflation-adjusted increase of 4% in wages in the same 10-year period from 2009 to 2019.
Given these rising costs, employers should look beyond 2021. They should not seek a short-term fix by raising copayments, deductibles, and other out-of-pocket costs for next year. While this strategy may initially reduce spending on health care, studies show that it will disincentivize employees to seek preventative treatment. In fact, families with higher deductibles are less likely to take their children to see the doctor, even when the visit is free. Over time, this leads to worse health outcomes for employees and their families, which also means much higher costs.
Here are three strategies that can help employers weather the inevitable ups and downs of 2021 and beyond and improve employee health:
1. Manage health care benefits like all other purchases.
Business leaders, especially the CEO, need to make it a priority to understand the health care benefits business. Employee health benefits consume more than $15 million annually per 1,000 employees, and employers should treat costs with the same rigor and expertise that they assess other major expenses. Whether it’s through their broker, insurance company, or consultants, businesses should examine these costs closely and understand where they are deviating from benchmarks and why. A car manufacturer should not overpay for care anymore than it overpays for steel.
For example, when employees experience a common ailment like uncomplicated back pain, do their doctors tend to order MRI and back surgery, driving up costs unnecessarily in an overeager fee-for-service model of treatment? Or do they follow more cost-efficient, preventative guidelines that lead with rest and physical therapy?
By challenging providers with these types of questions, large employers such as Walmart and Boeing have redesigned their employee benefits plans to encourage employees to seek second opinions and have even gone so far as to allow them to expense travel to medical centers that offer better care at lower costs. Employers may also find that forming alliances or joining cooperatives can expand the scale of their data, help them identify and exploit opportunities for improving the quality and cost of treating specific conditions, and enhance their purchasing power for health care.
2. Leverage technology.
The Covid-19 pandemic will open unprecedented opportunities for employers to leverage technology that helps employees seek, manage, and receive health care over the internet. During the emergency, public and private insurers lifted provider restrictions on telehealth, and the increasing willingness of both clinicians and patients to use digital technologies is changing the landscape of health care, especially for those who have chronic conditions that require ongoing monitoring. Given that Medicare is likely to sustain these changes, employers should work with their private insurance partners to ensure continued coverage of telehealth for their employees.
Virtual chronic care solutions are also gaining traction. Take people with type 2 diabetes, who now comprise about 10% of all Americans and whose care costs more than $325 million per year. Technologies like a Bluetooth-enabled continuous glucose monitor (CGM) obviate the need for daily finger pricks and glucometer checks for monitoring blood sugars. (Verily, the company I work for, is developing a next-generation CGM with Dexcom.) This technology, when paired with a smartphone app that records meals (a quick photo of the food is sufficient), exercise, and medications, can help individuals understand the impact of their actions on their health. Onduo, a digital health company managed by Verily, combines this technology with telehealth and chat features to connect employees to health coaches and physicians. It offers a virtual diabetes clinic on demand.
Amid a burgeoning marketplace of digital health offerings and innovations, employers should shop and negotiate for health care solutions with the same rigor they shop for their business needs. They should challenge vendors to demonstrate the cost-effectiveness of their programs to produce better health and improve productivity, presenteeism, and quality of life for their employees. They should even consider demanding money-back guarantees like some health systems now provide.
3. Partner with hospitals and physicians.
As health systems struggle with their own financial crises, this is a good time for employers to partner more closely with hospitals and doctors. If the CEOs of businesses have much to learn about health care, perhaps health care has much to learn from these CEOs. Whether it’s lessons in improving operations from a manufacturing plant or ways to deliver better customer service from a retail perspective, employers can offer their own industry-specific expertise to help hospitals and medical facilities practice safer, more efficient, patient-friendly, and cost-effective care. For example, Intel shared its expertise in supply chain and “lean” management to improve clinical care in metropolitan Portland, Oregon. Most hospitals and health systems have a community advisory or governance board. By serving on these committees, employers can begin to understand — and perhaps even improve — the care their employees and their families receive.
Employers’ actions must be decisive precisely because the future is so uncertain. By partnering with the health systems that provide care for their employees, establishing clear expectations for high quality and low-cost care, and leveraging telehealth and virtual care solutions to achieve these goals, businesses can help their employees better weather the ups and downs of Covid-19. In doing so, employers can build a more robust and affordable model for the good of their businesses, the economy, and the health of millions of Americans.
SOURCE: Lee, V. (15 June 2020) "U.S. Health Care Is in Flux. Here’s What Employers Should Do." (Web Blog Post). Retrieved from https://hbr.org/2020/06/u-s-health-care-is-in-flux-heres-what-employers-should-do