Reducing the stigma of mental illness with digital treatment options
With mental health becoming a subject that is more relevant in workplace cultures, employers are realizing that providing resources regarding mental health could benefit employees' health and productivity. One in four people are affected by a mental health disorder during their life, and it's important for employers to provide as many resources for their employees. Read this blog post to learn how providing resources for employees could help long-term.
Mental health has become a global epidemic, and employers are quickly becoming aware of how important it is to provide resources for workers who may be struggling.
“We’ve gone through an evolution from where mental health wasn’t being addressed at all within the workplace to a point today where there is a far higher level of awareness,” says Ken Cahill, CEO of SilverCloud Health, a digital mental health company. “But we have to move from that to providing an actionable plan and a solution within the workplace.”
One in four people will be affected by a mental health disorder during their life, and 450 million people have mental health issues, according to the World Health Organization. The financial drain on the workplace is staggering: mental illness accounts for $194 billion in lost revenue per year due to increased healthcare costs, lost productivity and absenteeism, according to the National Alliance on Mental Illness.
“People aren't being given the toolkits to help them handle the key challenges that are there in life,” Cahill says. “Those [challenges] will leak into the everyday work environment.”
Despite the growing number of people living with mental health disorders, finding accessible and affordable treatment is often a barrier to getting help. Two-thirds of people with mental disorders never seek treatment from health professionals, according to WHO.
“The level of acceptance around mental health is improving, but the system is getting worse — our access to mental health professionals, psychiatrists and others is getting worse,” says Michael Thompson, president and CEO of the National Alliance of Healthcare Purchaser Coalitions.
SilverCloud hopes to ease the burden through their benefits platform, treating mental health needs through online modules, journaling and coaching.
“It’s very much about the full spectrum of care — challenges around work-life balance, resilience, sleep, financial debt, anxiety and depression,” Cahill says. “What we're delivering to the organization is a full end-to-end solution, and everyone can access it.”
SilverCloud uses techniques backed by cognitive behavioral therapy, one of the most common forms of treatment. Users start by taking a short quiz, which identifies a variety of risk factors associated with their mental health and assigns them various program modules 30 to 40 minutes in length. Users also have access to in-person coaches who can personalize and suggest other modules and features, depending on their needs.
Cahill says SilverCloud can be used in conjunction with in-person therapy and other mental health treatments, but 65% of users report a clinically significant improvement in the reduction or severity of their symptoms, in line with person-to-person therapy outcomes. Currently, over 200 healthcare, payor and employee benefits organizations are working with SilverCloud. Express Scripts and Mercer Canada will soon be able to get access to the company’s digital mental health platform as well.
SilverCloud is part of a growing group of digital mental health providers hoping to meet the demands of employees placing a high priority on accessible, tech-based mental health benefits. Benefitfocus includes access to Happify through their BenefitsPlace platform. The mental health app uses gamification to teach mood training. Additionally, Cisco recently partnered with Vida, a chronic care app, to offer teletherapy through its digital coaching platform.
Cahill says the focus on the importance of good mental health will push employers to keep fighting for these critical resources.
“The reason we all hold down a job, work as functioning members of society, hold on to relationships and those kinds of things are the result of good mental health,” he says. “There’s still work to be done, but the strides that have been made are a real sea change from where we were two or three years ago.”
SOURCE: Place, A. (31 January 2020) "Reducing the stigma of mental illness with digital treatment options" (Web Blog Post). Retrieved from https://www.benefitnews.com/news/reducing-the-the-stigma-of-mental-illness-with-digital-treatment-options
Rising cost of healthcare is hurting HSAs
With HSA's providing a way for users to be able to reduce out-of-pocket costs for healthcare, deductibles still continue to rise. Read this blog post to learn more about why continuously raised healthcare costs are hurting current HSA's and HSA's that could be used for retirement.
Employees are increasingly putting money aside for their HSAs, but they’re using almost the entirety of it to cover basic health needs every year instead of saving the money for future expenses, according to Lively’s 2019 HSA Spend Report.
“People are putting money in and taking money out on a very regular basis, as opposed to trying to create some sort of nest egg for down the road,” says Alex Cyriac, CEO and Co-Founder of Lively.
The San Francisco-based HSA provider says 96% of annual contributions were spent on expected expenses and routine visits as opposed to unexpected health events and retirement care. In 2019, the average HSA account holder spent their savings on doctor visits and services (50%), prescription drug costs (10%), dental care (16%), and vision and eyewear (5%).
The rising cost of healthcare is a factor in these savings trends: Americans spent $11,172 per person on healthcare in 2018, including the rising cost of health insurance, which increased 13.2%, according to National Health Expenditure Accounts. For retirees, the figures are shocking: a healthy 65-year-old couple retiring in 2019 is projected to spend $369,000 in today’s dollars on healthcare over their lifetime, according to consulting firm Milliman.
“Because people can't even afford to save, there's going to be a very low likelihood that most Americans are going to be able to afford their healthcare costs in retirement,” says Shobin Uralil, COO and Co-Founder of Lively.
HSAs were intended to be a way for consumers to save and spend for medical expenses tax-free. Additionally, its biggest benefit comes from being able to use funds saved in an HSA in retirement — when earnings are lowest and healthcare is most expensive. However, just 4% of HSA users had invested assets, according to the Employee Benefit Research Institute.
While HSAs have surged in popularity as a way for more Americans to reduce overall out-of-pocket healthcare spending, more education is required to help account holders understand the benefits of saving and investing their annual contributions for the long-term, the Lively report states.
“As deductibles continue to rise, people just don't seem to have an alternative source for being able to fund those expenses, so they are continuing to dip into their HSA.” Cyriac says. “I think this is just reflective of the broader market trend of healthcare costs continuing to rise, and more and more of those costs being disproportionately passed down to the user.”
SOURCE: Nedlund, E. (29 January 2020) "Rising cost of healthcare is hurting HSAs" (Web Blog Post). Retrieved from https://www.employeebenefitadviser.com/news/rising-cost-of-healthcare-is-hurting-hsas
Need a Morale Booster? Therapy Dogs Can Help
Work is stressful by itself, but with added layers of stress from having to process outside emotions and hardships, it becomes difficult to give the best service that is should be offered. Allowing a therapy dog in the workplace can help employees reduce stress, and become calmer throughout the day. Read this blog post to learn more about how therapy dogs in the workplace can be beneficial to the work environment.
The Evergreen Health services facility in Buffalo, N.Y., is buzzing with anticipation several days before Stella arrives. Some staff even seek out Matthew Sydor, the director of housing and retention services at the health care agency, days ahead of time to confirm her arrival. Others have requested a calendar invite from him so they can plan their day around her visit.
The middle-aged golden retriever is a certified therapy dog, and her visits are a hit with employees.
Therapy dogs are common in what Sydor describes as the "helping" fields. Bringing therapy dogs into any workplace, he says, is an opportunity to break up the day for employees and give them something to look forward to at no cost.
"At our agency we work with many people who have gone through traumatic experiences. All work is stressful, but layers of stress are added when you are helping others to process their own emotions and hardships," he explained. "The compounding stress makes it difficult to best serve our patients at a high level. Having a therapy dog in the building helps staff to participate in a self-care activity."
Stella's owner, Krista Vince Garland, Ph.D., is an associate professor of exceptional learning at Buffalo State College. The pair specializes in animal-assisted interventions in educational settings but are receiving an increasing number of requests to visit local workplaces.
"Everyone who visits Stella has the same comments: 'I feel so much better. She's brightened my day,' " Vince Garland said. "Aetna also did a study in 2017 that shows tremendous promise on the benefits of therapy dogs in the workplace. Employee sick days were down, morale was up and interactions among co-workers increased."
Having dogs in the workplace isn't a new concept, but it's a concept that hasn't been widely embraced. Only about 11 percent of companies in the United States allow pets in the office, according to the Society for Human Resource Management Employee Benefits 2019 survey.
Paul LeBlanc is the founder and CEO of Zogics, a Massachusetts-based fitness, cleaning and body care company. S'Bu, a Rhodesian Ridgeback, was LeBlanc's first employee.
"When you look at [Inc. magazine's] list of best places to work, 47 percent of those companies allow dogs in the office," he said. "Studies have shown that petting a dog for five to 10 minutes causes a reduction of blood pressure and the dogs have calming effects on people."
But not all employers are ready to go "all-in" like Zogics. For these workplaces, therapy dogs are a viable alternative. Sydor and Vince Garland share insight into what has made their partnership successful and offer tips any business can use.
Communicate. No one likes a surprise, even if it's a friendly four-legged canine. Talk with staff first to address any questions or concerns. Arrange a quick meet-and-greet to give the dog a chance to get used to the environment before interacting with employees.
"This also gives the administrator a chance to touch the dog and make sure it is clean and well-groomed. Therapy dogs are required to have a bath within 24 hours of any visit," Vince Garland said.
Distributing a fact sheet helps with the introduction of a therapy team. Once a visit is established, send a reminder a day prior.
"I suggest telling your staff why you're bringing therapy dogs in and advertise it as much as possible to employees," Sydor said.
Verify credentials. Ask about the team's training. Certifications are not required of service dogs and emotional support dogs. However, therapy dogs must complete training. Stella is an American Kennel Club (AKC) Good Citizen and has earned certifications through Therapy Dogs International and the SPCA Erie County Paws for Love.
"There's a lot of fake information out there. If someone is shy about sharing that information, that's a clue that more discussion is needed," Vince Garland said.
Sydor added, "We found Krista and Stella through Erie County SPCA's Paws for Love, and it has been a great partnership. They hold liability insurance for any damage that may occur. All dogs are well-trained, and the handlers are consistent with how they conduct their work."
Acknowledge cultural differences. "Care must be taken to respect cultural sensitivities," Vince Garland said. "Some cultures regard dogs as unclean, others view dogs as nuisances, while others believe spirits may appear as animals."
Designate a point of contact. This person handles scheduling visits, interacting with the team, and confirming vaccinations and liability insurance. The ideal individual works well with people and is animal-friendly, according to Vince Garland.
Create a space for the team. Not everyone will embrace dogs. Designating space separate from the main workflow respects the space of those employees who choose not to interact with the dog.
"Evergreen has given us a room for visits," Vince Garland said. "By being out of the flow, we're able to meet with staff who are interested without making others feel uncomfortable."
SOURCE: Navarra, K. (13 January 2020) "Need a Morale Booster? Therapy Dogs Can Help" (Web Blog Post). Retrieved from https://www.shrm.org/resourcesandtools/hr-topics/benefits/pages/need-a-morale-booster-therapy-dogs-can-help.aspx
Starbucks Unveils Mental Health Initiatives for Employees
Did you know: One in Five United States adults experiences mental illness. According to the World Health Organization, work is good for mental health but a negative environment can lead to physical and mental health issues. Starbucks has announced that they have launched an app for its employees to improve their mental health along with their anxiety and stress. Read this blog post to learn more about how Starbucks is creating mental health benefits for their employees.
Starbucks has launched an app to help its employees improve their mental health and deal with anxiety and stress.
The global coffee company also announced it will be retooling its employee assistance program based on feedback from employees and mental health experts. It plans to offer training to its U.S. and Canada store managers on how to support workers who experience a mental health issue, substance-abuse problem or other crisis.
Every year, one in five U.S. adults experience mental illness and one in 25 experience serious mental illness, according to the National Alliance on Mental Health. And more people are killing themselves in the workplace, according to the Washington Post. The number of such suicides increased 11 percent between 2017 and 2018. Employers, the Post reported, "are struggling with how to respond."
Business Insider reported that some Starbucks employees it interviewed about the initiatives said much of their stress comes from the company cutting back on hours and relying on employees to work longer shifts with fewer people and no pay increase.
The World Health Organization points out that while work is good for mental health, a negative environment can lead to physical and mental health problems. Harassment and bullying at work, for example, can have "a substantial adverse impact on mental health," it said. There are things employers can do, though, to promote mental health in the workplace; such actions may also promote productivity.
SHRM Online has collected the following articles on this topic from its archives and other sources.
Starbucks Announcements Its Commitment to Supporting Employees' Mental Health
The company released a statement Jan. 6 about additions to its employee benefits and resources that support mental wellness.
"Our work ahead will continue to be rooted in listening, learning and taking bold actions," it said. In the past, that has included tackling topics such as loneliness, vulnerability "and the power of small acts and conversation to strengthen human connection."
(Starbucks)
Mental Illness and the Workplace
Companies are ramping up their efforts to navigate the mental health epidemic. Suicide rates nationally are climbing, workers' stress and depression levels are rising, and addiction—especially to opioids—continues to bedevil employers. Such conditions are driving up health care costs at double the rate of illnesses overall, according to Aetna Behavioral Health.
Starting workplace conversations about behavioral health is challenging because such conditions often are seen as a personal failing rather than a medical condition.
(SHRM Online)
Research: People Want Their Employers to Talk About Mental Health
Mental health is becoming the next frontier of diversity and inclusion, and employees want their companies to address it. Despite the fact that more than 200 million workdays are lost due to mental health conditions each year—$16.8 billion in employee productivity—mental health remains a taboo subject.
(Harvard Business Review)
Viewpoint: Addressing Mental Health in the Workplace
Companies are reassessing their behavioral health needs and are looking to their health care partners for creative, integrated and holistic solutions. Many are turning to employee assistance programs for help.
(Benefits Pro)
4 Things to Know About Mental Health at Work
Kelly Greenwood graduated summa cum laude from Duke University with degrees in psychology and Spanish. She holds a master's degree in business from Northwestern University's Kellogg School of Management, contributes to Forbes magazine and is editor-at-large for Mental Health at Work, a blog on Thrive Global.
She also is someone who has managed generalized anxiety disorder since she was a young girl. It twice led to debilitating depression. She shared four things she wishes she had known earlier in her life about mental health.
(SHRM Online)
Employers Urged to Find New Ways to Address Workers' Mental Health
An estimated 8 in 10 workers with a mental health condition don't get treatment because of the shame and stigma associated with it, according to the National Alliance on Mental Illness. As a result, the pressure is growing on employers to adopt better strategies for dealing with mental health.
(Kaiser Health News)
Mental Health
Depression, bipolar disorder, anxiety disorders and other mental health impairments can rise to the level of disabilities under the Americans with Disabilities Act that requires employers to make accommodations for workers with such conditions.
This resource center can help employers understand their obligations and address their workers' mental health.
(SHRM Resource Spotlight)
SOURCE: Gurchiek, k. (14 January 2020) "Starbucks Unveils Mental Health Initiatives for Employees" (Web Blog Post). Retrieved from https://www.shrm.org/resourcesandtools/hr-topics/benefits/pages/starbucks-unveils-mental-health-initiatives-for-employees.aspx
New employee retention tool has four legs and goes 'woof'
The term "a dog is a human's best friend" can get thrown around, but what if dogs lead to increased productivity and less stress? Read this blog post to learn how allowing dogs at work can benefit employee productivity.
There are so many reasons to allow dogs in the workplace, from increasing production and morale to decreasing absences.
And while financial institutions have not traditionally offered such an employee benefit, there are plenty of banks and fintechs that are leading the way in the industry.
For example, JPMorgan Chase not only allows dogs into its branches, but it also hands out dog treats. Wells Fargo is another company with a great pet policy. In fact, Wells Fargo has a host of dogs that have been part of various offices throughout the years.
Other companies are going the extra mile, and providing dog parks on-site or dedicated walking areas for their four-legged colleagues. The online small-business lender Kabbage is well known for its laid-back work culture, including casual dress code, beer on tap and a dog-friendly policy.
Perhaps one of the most pet-friendly companies is Redtail Technology, which is named after the founder Brian McLaughlin’s dog. Not only does the company encourage people to bring their dogs to work, it also has a dog park, and a Slack channel for employees to message each other when they’re about to take their dog out for a play.
Still skeptical about this approach? Here are five scientifically backed reasons that allowing dogs into the office can benefit employees.
First, allowing people to bring their pet along with them to work actually helps to decrease stress for not just them, but everyone in the workspace. Washington State University found that petting a dog for just 10 minutes can help to reduce stress.
Playing with or petting a dog can increase the levels of oxytocin, a stress-reducing hormone; and decrease the levels of cortisol, a stress hormone.
A team of researchers at Virginia Commonwealth University carried out a study that compared three groups of employees: those who brought their dogs to work, those who had dogs but left them at home those who didn’t own a dog. The lead of the study, Randolph Barker, said that "the differences in perceived stress between days the dog was present and absent were significant. The employees as a whole had higher job satisfaction than industry norms."
Second, when staff bring their dog to work, they will need regular walks throughout the day, which will encourage people to be active. Being physically active not only gives people the satisfaction that naturally comes with exercise, but it will also increases productivity.
Each time someone exercises, new mitochondria produce more energy known as ATP. This gives people more energy physically and for the brain, which boosts mental output and productivity.
Third, workplaces that allow dogs into their offices usually find that employees are more cooperative with each other, and that they have better working relationships. Dogs increase morale and bring a more fun and positive outlook to office life, which encourages people to be friendlier to each other.
Dogs are a common interest between many different people from all walks of life, so having some common ground can help people to connect. Central Michigan University found that when a dog is in the room with a group of people, they are more likely to trust each other and collaborate together effectively.
Fourth, actively encouraging staff to bring their pet to work will foster a really good relationship between employer and employee. It will help to make employees feel valued and increase the likelihood they'll stay long term at the company.
The more satisfied people feel in their job role, the less likely they are to search for work elsewhere, making employee retention rates higher, according to one study.
Fifth, allowing staff to bring their pet to work increases their job satisfaction and reduces stress, which in turn will mean that they are less likely to become ill and need time off work. This can have an added effect on other employees in the business too. With the positive, stress-reducing nature that dogs bring to an office, people will be less likely to take time off.
With such benefits already working for some financial companies, hopefully others will start to catch up with these pet-friendly policies soon.
SOURCE: Woods, T. (09 January 2020) "New employee retention tool has four legs and goes 'woof'" (Web Blog Post). Retrieved from https://www.benefitnews.com/opinion/pet-friendly-policies-as-employee-retention-tools
Nonprofit launches student debt benefits program for employees
With the cost of college increasing, employers are trying to help employees tackle their student debt. According to the Federal Reserve, student debt has increased to more than $1.6 trillion. Read this blog to learn about how Northern Rivers Family of Services, a New York-based nonprofit, is paying their employee's student debt.
Northern Rivers Family of Services, an Albany, New York-based nonprofit social services organization, has partnered with IonTuition to bring a student loan repayment benefit to the employer’s 1,400 employees.
Northern Rivers decided to take on the student loan problem by offering employees the valuable wellness benefit, which is also a powerful recruitment and retention tool, company representatives said. Indeed, student loan debt has soared to more than $1.6 trillion, according to the Federal Reserve, yet only 8% of employers offer their workers a student loan benefit, according to the Society for Human Resource Management.
“Student loans are a growing concern for today’s workforce,” says Linda Daley, chief human resource officer with Northern Rivers. “Sixty-five percent of our staff holds a bachelor’s degree or higher, and they’re saddled with the burden of student loan debt.”
Some employers that offer student loan repayment programs include Trilogy Health Services, Selective Insurance, Travelers Insurance, Wayfair and New Balance.
Employees with Northern Rivers will have access to a complete suite of student loan repayment tools plus a monthly contribution program, including concierge student loan advising, free accounts for family members, unbiased refinancing, default and delinquency recovery services, and college research tools.
“The repayment program is available for all benefit-eligible employees at Northern Rivers, which is approximately 1,060 of our employees,” Daley says. “With the IonTuition platform, the program was easy to roll out and our employees were immediately equipped with all the tools they need to reach financial wellness.”
Employees must have a minimum of six months with Northern Rivers to sign up for the contribution plan in which the organization will pay $35 a month toward employees’ student loans.
“Attracting and retaining quality talent in the nonprofit space is challenging,” Daley says. “This benefit gives our employees the security that their student loan payments are more manageable. ”
SOURCE: Schiavo, A. (16 December 2019) "Nonprofit launches student debt benefits program for employees" (Web Blog Post). Retrieved from https://www.benefitnews.com/news/nonprofit-launches-student-debt-benefits-program-for-employees
When productivity increases, so do wages
Although productivity is the baseline of wages, deviations do occur. Productivity and pay can diverge for multiple reasons that are not included in the standard economic model. Read this blog post to learn more about pay versus productivity.
“Workers are delivering more, and they’re getting a lot less,” argued former Vice President Joe Biden in a speech at the Brookings Institution this summer. “There’s no correlation now between productivity and wages.”
Senator Elizabeth Warren, a Democratic presidential rival, agrees. Her campaign website states that “wages have largely stagnated,” even though “worker productivity has risen steadily.”
The claim that productivity no longer drives wages is common enough on both the political left as well as the right. Proponents of this view argue that workers aren’t getting what they deserve based on their contributions to employers’ bottom lines.
Income inequality — the gap between the incomes of the rich and everyone else — supposedly demonstrates that the economy’s rewards are flowing, undeservedly, to those at the top. Populists take that conclusion even further, arguing that capitalism is fundamentally broken.
If that is what’s happening, it refutes textbook economics, which argues that wages are determined by productivity — by the amount of revenue workers generate for their employers. If a company paid a worker less than her productivity suggests she should be making, then she would go down the street and get a job that would pay her what she’s worth. Employers compete for workers, ensuring that workers’ wages are in line with their productivity.
This theory leaves out a lot, of course. Pay and productivity can diverge for any number of reasons not included in the standard economic model. Workers may not know how much revenue they create, or what other employment options are available to them. And changing jobs has its own costs, which in the real world gives employers some power over wages.
For critics of the current system, “some power” is a drastic understatement. In their telling, the decline of labor unions; erosion of the minimum wage; rise of non-compete and no-poaching agreements; inadequate enforcement of workplace standards and the like have dramatically reduced the bargaining power of workers. This has allowed businesses to drive down wages to the bare minimum job applicants and current workers will accept, pushing their pay below what their productivity suggests it should be.
Which view is correct? The latest piece of evidence on this question comes from Stanford University economist Edward P. Lazear, who analyzed data from advanced economies and confirms a strong link between pay and productivity.
Like several previous studies, Lazear’s research finds that low-, middle- and high-wage workers all benefit from growth in average productivity. This suggests that improvements in overall economic efficiency help all workers, not just the rich.
But Lazear argues, correctly, that a relevant issue is not whether workers benefit from changes in average productivity. Instead, if you want to know whether workers are being paid for their productivity, you should look at whether changes in the productivity of, say, low-wage workers affect the pay of that specific group.
It is infeasible to measure the productivity of individual workers. (How much revenue per hour of work do I generate for Bloomberg?) So Lazear examines productivity at the industry level, and compares industries that employ highly skilled workers with those that employ lesser-skilled ones.
Using data on the U.S. from 1989 through 2017, Lazear finds that productivity in industries dominated by higher-skilled workers increased by (roughly) 34 percent in that period. The wages of those workers grew by 26 percent. For industries requiring lesser skills, productivity increased by 20 percent, while wages grew by 24 percent.
In other words, pay increased faster than productivity in industries with lesser-skilled workers, and slower than productivity in industries with higher-skilled workers. Another striking implication of this finding is that “productivity inequality” — the gap in productivity between workers — may have grown faster than wage inequality over this period. While wage differences have increased over time, differences in productivity between groups of workers have increased even more.
The upshot: Slower wage growth for lesser-skilled workers is not prima facie evidence that employers have significant power over wages or that productivity doesn’t determine wages. Instead, Lazear concludes that productivity growth for high-skilled workers has increased rapidly enough (actually, more than enough) to account for growing inequality.
What caused this? Lazear points to two familiar explanations. Technological change disproportionately benefits the highly skilled, increasing their wages and productivity. And the globalization-led shift to a services economy has reduced the productivity of goods-producing, lesser-skilled workers.
Lazear also suggests that colleges may have improved more than high schools in their ability to impart skills to graduates. If so, industries dominated by college graduates would be expected to have had faster productivity growth over the last three decades. This would have caused both a wider dispersion in productivity across industries and in wages across groups of workers.
Such research doesn’t settle the debate, of course. Yet it does strengthen my view that wages are heavily influenced by market forces, even if they are not entirely determined by them. While productivity sets the baseline for wages, deviations from that baseline occur.
So contrary to what Biden, Warren and (many) others say, market forces, not power dynamics, are the principal driver of inequality.
This gets at the heart of the moral properties of the market economy. Capitalism produces unequal outcomes: The wages for some grow faster than for others. Those disparities are palatable if they are caused by differences in risk-taking, work effort and skills. They are tolerable if people are getting, in some sense, what they deserve. But if wages aren’t determined by productivity — if hard work doesn’t pay off and if workers aren’t receiving just returns — then something has gone badly wrong with the system.
Fortunately, the system doesn’t seem to be broken. It does need to be fine-tuned, however, with the goal of increasing the productivity of the lesser skilled. And we should be confident that if their productivity increases, so will their wages.
SOURCE: Bloomberg News (03 January 2020) "When productivity increases, so do wages" (Web Blog Post). Retrieved from https://www.employeebenefitadviser.com/articles/when-productivity-increases-so-do-wages
Congress OKs paid family leave for federal workers
First-time landmark benefits are rising to the surface come the new year. In 2020, federal workers will receive paid family leave for the birth or placement of a child. Read this blog to learn what paid family leave for federal workers will look like come the new year.
Congress has given the green light for federal workers to receive 12 weeks of paid leave for the birth or placement of a child. This first-time landmark benefit comes as lawmakers and influential CEOs, continue to advocate for a nationwide parental leave policy.
The Senate approved and sent the 2020 National Defense Authorization Act (NDAA), which includes the leave provision, to President Donald Trump Dec. 17. The House passed the bill Dec. 11. Trump previously said he would sign the bill into law, and Ivanka Trump tweeted Tuesday afternoon that the president would sign the legislation this week.
The NDAA, sweeping defense legislation, provides 12 weeks' paid parental leave for federal employees based on language of a bill sponsored by Rep. Carolyn B. Maloney, D-N.Y. The benefit takes effect Oct. 1, 2020.
The NDAA also includes a "3.1-percent pay raise for our troops [and establishes] the United States Space Force," according to a statement by the White House press secretary. Bipartisan congressional lawmakers allowed for the creation of the Space Force as the sixth branch of the military in exchange for the new parental-leave benefits, according to The New York Times.
Calls for private-sector leave
The new benefit is reserved for federal employees and highlights the fact that the U.S. is the only industrialized country without a nationwide federal parental leave policy or law, according to Maloney.
The congresswoman noted in her opening remarks that the U.S. is one of only two countries that do not provide workers with paid family or medical leave, a statement presidential candidate Andrew Yang made during the November Democratic presidential debates. (It's worth noting that this is not strictly true, according to reporting from Inc.)
"This agreement is not perfect," she said. "The Senate refused to approve paid leave for medical reasons. This provision covers only federal employees. So, it does not cover anyone working in the private sector."
Maloney, who has advocated for such a benefit for many years, added, "We will continue fighting for these Americans in the months and years to come. But despite these drawbacks, this is an amazing accomplishment."
Some state and local governments require paid leave for private-sector employees, but that patchwork of laws serves neither employees nor employers well, according to the Business Roundtable, an association of CEOs of American companies.
Ginni Rometty, chairman, president and CEO of IBM, sent Trump and congressional leaders a letter Dec. 12 on behalf of the council, urging them to enact federal legislation creating paid family and medical leave benefits.
"Legislation should provide uniform standards that apply to all covered employees and that adhere to the federal Family and Medical Leave Act requirements," the letter said. "Doing so would benefit employees needing coverage as well as help businesses challenged by the growing patchwork of competing and inconsistent state plans."
As private companies compete with the federal government for top talent, benefits could be a deciding factor, and studies have shown that employers can boost retention by offering such perks.
SOURCE: Estrada, S. (17 December 2019) "Congress OKs paid family leave for federal workers" (Web Blog Post). Retrieved from https://www.hrdive.com/news/congress-oks-paid-family-leave-for-federal-workers/569286/
DOL updates FLSA regular rate rule
With the New Year right around the corner, it's important to know what rules are being updated. The U.S. Department of Labor has updated the "regular rate of pay" to calculate overtime pay. This standard is used to calculate overtime pay under the Fair Labor Standards Act (FLSA). Read this blog post for more information on this final rule.
The U.S. Department of Labor (DOL) has issued a final rule updating the "regular rate of pay" standard used to calculate overtime pay under the Fair Labor Standards Act (FLSA), according to a notice to be published in the Federal Register Dec. 13.
In the rule, DOL clarifies when certain employer benefits may be excluded when calculating overtime pay for a non-exempt employee, including bona fide meal periods, reimbursements, certain benefit plan contributions, state and local scheduling law payments and more. The rule also clarifies how employers may determine whether a bonus is discretionary or nondiscretionary.
The rule will take effect Jan. 12, 2020.
The rule will likely result in employers taking a closer look at their benefits packages, Susan Harthill, partner at Morgan Lewis, told HR Dive in an emailed statement.
A number of employer advocates that submitted comments on DOL’s Notice of Proposed Rulemaking (NPRM), including the Society for Human Resource Management, supported excluding employee benefits like gym memberships, tuition assistance and adoption and surrogacy services from regular rate calculations. Gym memberships and tuition assistance are generally excludable, according to DOL, but the agency said only some forms of adoption assistance would be excludable and that most surrogacy assistance payments would not be.
Employers also inquired about public transportation and childcare subsidies. In the final rule, DOL said public transportation benefits would not be excludable, noting that the agency "has long acknowledged that employer-provided parking spaces are excludable from the regular rate but commuter subsidies are not." But it did add clarifying language around childcare, saying that while "routinely-provided childcare" must be included in the regular rate, emergency childcare services — if those services are not provided as compensation for hours of employment and are not tied to the quantity or quality of work performed — may be excluded.
DOL also offered additional details about its treatment of tuition reimbursement and education-related benefits. As it stated in the NPRM, the agency said that as long as tuition programs are offered to employees regardless of hours worked or services rendered are "contingent merely on one’s being an employee," such programs qualify as "other similar payments" excludable from the regular rate. This includes payment for an employee's current coursework, online coursework, payment for an employee’s family member’s tuition and certain student-loan repayment plans, DOL said.
HR teams should respond by performing audits of the pay codes for benefits that would be impacted, Tammy McCutchen, shareholder at Littler Mendelson, told HR Dive in an interview: "This is a good time to get your calculations correct." McCutchen suggested that employers conduct audits first before deciding whether to expand benefits options in light of the rule. She added that it's an employer's responsibility to notify payroll providers of any changes to exemptions.
Employers also will need to check state laws and consult with counsel ahead of implementing changes to employees' regular rates, as those laws may differ from DOL's new rule, Harthill said. Moreover, "[t]his is an interpretive rule and it remains to be seen whether courts will defer to DOL's interpretation of the rule or if any resultant exclusions are challenged," she added.
SOURCE: Golden, R. (12 December 2019) "DOL updates FLSA regular rate rule" (Web Blog Post). Retrieved from https://www.hrdive.com/news/dol-updates-flsa-regular-rate-rule/568954/
Employees want year-round benefits instead of holiday parties
Are employees willing to trade holiday celebrations for better benefits? According to research from Reward Gateway, more than half of employees would skip the parties and celebrations for rewards and bonuses. Read the following blog post from Employee Benefit News for more information.
Tis’ the season to head to the holiday party and celebrate with coworkers, but more employees are willing to swap the festivities for better benefits and year-long recognition from their employers.
More than half of employees would skip the holiday party if it meant rewards and recognition throughout the year, according to a new survey by Reward Gateway, an employee engagement platform. Additionally, 58% of recent graduates said they would give up an end-of-year bonus for more frequent rewards.
“Being the holiday season, all parts of the workforce are trying to prioritize their flexibility and collaboration and their shared purpose,” says Robert Hicks, group HR director at Reward Gateway. “Employers could do more, and there is a growing trend of more frequent benefits that align to your purpose, mission and values.”
The office holiday party has long been a mainstay of work culture, and 76% of companies plan to throw a party in 2019, up 11% from last year. Additionally, 24% of companies plan to give performance-based bonuses to select employees, while just 9.6% plan to give bonuses to all employees, according to a survey from recruiting firm Challenger, Gray & Christmas.
Employees are seeking value in a culture of recognition throughout the year instead, and want more consistent collaboration and communication with employers. Going hand-in-hand with that sentiment is financial assistance through their benefits offerings.
“This can come in two core ways, the first being perks that can help you reduce your overall spending.” Hicks says. “Employees are also looking for a really strong recognition culture, and on top of that, adding in financial rewards throughout the year.”
With unemployment at a 50-year low, the quest to attract and retain top talent should push employers to encourage a workplace that doesn’t just celebrate successes once a year.
“Everybody knows it’s a really competitive market place, and your number one response needs to be what can we do to be a really great workplace for people to stay and for people to join,” Hicks says. “Organizations that prioritize listening to their people and delivering continuous rewards and recognition can create an environment where employees are more engaged and excited about where they work all year — not just during the holidays.”
SOURCE: Place, A. (13 December 2019) "Employees want year-round benefits instead of holiday parties" (Web Blog Post). Retrieved from https://www.benefitnews.com/news/employees-want-year-round-benefits-instead-of-holiday-parties