When Should Managers Call HR?
When one thinks of contacting the HR department, it's often associated with filing a complaint or discussing a workplace issue that is in need of a resolution. There are often more reasons as to why the HR department needs to be contacted. Read this blog post to learn more.
Employers expect supervisors to resolve some issues on their own and to report other things to human resources—or possibly to in-house counsel—rather than to resolve them independently.
But do you know which is which? For example, you probably know that you should report to HR all complaints of unlawful discrimination, harassment or retaliation, even if:
- The employee requests that the complaint be kept confidential.
- The employee implores the supervisor not to consult with HR.
- The complaint appears to lack merit.
But in other instances, the line is less clear. For example, if an employee is frequently late, it's your job to resolve the issue by confronting the employee about his lateness and handling it according to established company policies. But what happens if the chronically tardy employee responds by saying that he has been late because of chemotherapy appointments? That's the kind of information you need to report to HR so a determination can be made about whether a work accommodation is appropriate.
Here are some other clarifications of when to report in suspect categories:
WAGE COMPLAINTS
An employee complaint about not being paid as much as he deserves usually is an employee relations issue, not a legal issue. But when an employee complains that the employer has failed to pay him for time worked or has made improper deductions from his pay, savvy supervisors will see legal red flags. For nonexempt employees, improper deductions may include things like not paying for short breaks. For exempt employees, improper deductions may include deductions inconsistent with the salary basis requirement of the overtime regulations of the Fair Labor Standards Act (FLSA), such as not paying an exempt employee for a holiday when the employer is closed.
By immediately reporting a wage complaint to HR, you let the organization determine whether the complaint has merit. If no money is owed or no improper deductions made, HR can correct—or at least try to correct—the employee's misunderstanding. On the other hand, if there was a mistake, HR can correct it before the employee files a complaint with an administrative agency or court. This should go a long way toward minimizing the employer's exposure to liquidated damages for willful violations of the FLSA, and it also may mitigate an employer's liability under state wage and hour laws, whose requirements and penalties are often more stringent than federal law.
Remember, you must report even minor wage claims. A single employee's small wage loss may signal a systemic problem affecting other employees—in other words, a class action waiting to be born.
ALLEGATIONS OF WRONGDOING BY OTHERS
More and more employees are "blowing the whistle" on alleged wrongs that may not directly affect their terms and conditions of employment—alleged corporate fraud, for example. Managers should report immediately complaints of criminal or fraudulent activity, or violations of statutes such as the Sarbanes-Oxley Act. You also should report alleged violations of core employer policies that may have material legal and business consequences, such as conflict of interest policies, business ethics standards or codes of conduct.
DISCLOSURE OF MEDICAL INFORMATION
Any disclosure of a serious health condition or a physical or mental impairment by a job applicant or employee should be reported to HR—even if the applicant or employee doesn't specifically seek an accommodation. During interviews, you may ask applicants whether they can perform the essential functions of the job for which they have applied—but you may not pursue any medical inquires before making a conditional offer of employment. Likewise, where a current employee's performance or behavior is below standard, managers need to focus on the deficiencies—and not inquire or speculate as to any suspected medical reason that may underlie them.
But what if an applicant says that he cannot perform a particular function because of clinical depression, or an employee acknowledges her performance deficiencies but says that lethargy resulting from her heart condition has caused them? In these cases, even though there was no direct request, the disclosure puts the employer on notice that the applicant or employee may need an accommodation. Accordingly, the employer—that is, HR and not you—may need to begin the interactive process to determine whether a reasonable accommodation is needed.
ACCOMMODATION OR LEAVE REQUESTS
An applicant or employee need not use the legal words "Americans with Disabilities Act (ADA) accommodation" or "Family and Medical Leave Act (FMLA)" to trigger statutory rights. The key is whether a reasonable supervisor would recognize the individual's communication as a request for an accommodation or a leave of absence. With regard to accommodations, for example, you should report requests for help, support, job changes, etc. if the employee—contemporaneously or previously—has disclosed the existence of a serious health condition or impairment.
As for leave, report requests for "time off" for medical or other potential FMLA situations, even if the employee does not utter "FMLA." Even if the employee clearly is not eligible for FMLA leave, you need to report a request for time off because a leave could be a reasonable accommodation under the ADA regardless of FMLA eligibility.
EVIDENCE OF UNION ACTIVITY
If 30 percent of eligible employees in an appropriate bargaining unit sign union authorization cards, the union can petition the National Labor Relations Board for an election. Even if an employer wins the election, the victory can be very costly. The key to avoiding elections is early detection of and rapid response to union activity. But employers often begin their counteroffensive only after the union has obtained the 30 percent showing of interest. Sometimes, this is because supervisors fail to report to HR what they may see as "isolated" signs of union support. A bundle of isolated, minor occurrences may amount to evidence of a serious union campaign.
Direct signs of union activity would include an employee handing out a union flier in the parking lot or wearing a pro-union T-shirt. Indirect warning signs would include unusual off-site gatherings of employees—at barbecues, bowling alleys and bars. You also need to be aware of the restrictions on your behavior under the National Labor Relations Act. Supervisors cannot:
- Spy on employees to see who may be engaging in union activity.
- Promise employees benefits for refraining from union activity.
- Interrogate employees as to whether they or others are engaging in union activity.
- Threaten or take adverse action against employees for engaging in union activity.
While you cannot spy, you can report what you see in plain view. And while you cannot interrogate employees about their union sympathies, you can report what is volunteered or what you inadvertently overhear.
GOVERNMENT COMMUNICATIONS
Inform HR immediately if you receive any communication from a government agency, official or entity, including everything ranging from a charge of discrimination filed with the EEOC or other agency to an on-site visit from a U.S. Department of Labor investigator asking to review certain files in connection with alleged overtime pay violations of the FLSA. It's not your duty to decide whether and to what degree to cooperate. Sometimes, government officials ask for more than they are entitled to have. And even where they have a legal right to the requested information, the manner in which the employer communicates can determine the legal outcome and damages that may flow from it. If an official contacts you by phone, be polite and say, "Our organization/company will cooperate with your request; however, I do not have the authority to respond. Let me give you the name and telephone number of the HR professional with whom you should speak. I also am going to contact HR right now."
LAWYER COMMUNICATIONS
Report immediately—and don't respond—to any subpoenas or letters from lawyers who do not represent the employer. In case of "friendly calls" from lawyers who are "just curious" about a few things, don't provide any information. There is no duty to cooperate with an attorney on a fishing expedition. Instead, say something like this: "I do not have authority to talk with you. Please give me your name and number and I will forward them to HR."
SIGNS OF WORKPLACE VIOLENCE.
Not all workplace violence is preventable. But sometimes there are warning signs that supervisors need to report to HR and/or security immediately, including:
- Discussions of or particular fascination with perpetrators or victims of violence.
- Talk of weapons that seems abnormal in frequency or content.
- Statements about hearing voices or receiving signals.
- Threats of suicide.
SOURCE: Segal, J. (21 July 2020) "When Should Managers Call HR?" (Web Blog Post). Retrieved from https://www.shrm.org/resourcesandtools/hr-topics/people-managers/pages/when-should-managers-call-hr.aspx
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
How to Prosper When HR Is Understaffed
The HR department often has many things on its plate when the company as a whole has a lack of staff, but what happens when the HR department has a lack of staff that may be caused due to many situations? Read this blog post to learn more.
One of the hardest parts about working in HR is helping a company's managers succeed when the company is understaffed. But what about when the HR department is understaffed, perhaps due to summer vacations, unfilled positions, or team members working fewer hours as they wrestle with child care or illness during the COVID‑19 pandemic?
HR leaders, whether managing a small or large team, can find the weight of a company's needs overwhelming when their department is short-staffed. But HR experts say there are a range of strategies to help address this situation.
"When an HR team is short-staffed, one of the best things to do is try to understand the goals of the company during this time," said Melodie Bond-Hillman, senior manager of HR and administration at XYPRO Technology Corp. in Simi Valley, Calif. She has had many cohorts reach out and express concern that their jobs have expanded out of scope during the coronavirus outbreak as they attempt to handle a range of new duties amid staff shortages. "They need to try and figure out how long term the staffing issue might be to know how to strategically plan," Bond-Hillman said.
Conversely, it's important not to over-promise when seeking staffing solutions for the department in such an unpredictable environment, said Buck Rogers, a vice president at Keystone Partners, a Raleigh, N.C., executive coaching and outplacement firm. "Don't set your team up for a fall," he said. "You need to keep their spirits up as much as possible, but giving them false hope can make them less likely to trust you in the future."
Rogers recommended against giving the HR team exact dates on when operations will return to normal, because no one can say for sure. Instead, he suggested being supportive—but not unrealistic.
Consider Investing in Automation
One positive step an HR leader can take during a period of uncertainty is to look for opportunities to automate required processes to save time, Bond-Hillman said.
"An important question to research is, how well is your HR system set up? Is it driving a lot of your process so you can automate when possible and give employees a strong range of self-service access?" she asked. "Do you have apps so workers can get their benefit cards and policy questions easily answered without your team being called on to step in too often? From getting their pay stubs to making 401(k) changes, the process needs to give employees a chance to help themselves. These are areas HR may get lazy at when times are easier, but it makes a difference" when times are tougher, as they are today, she said.
Even with shortcuts in place, there are other steps that will help the team operate more effectively. One is to provide new opportunities for team members to broaden their contributions, perhaps by giving responsibilities to HR professionals who are ready for a new challenge.
"This is a chance for them to help you out," Bond-Hillman said. But you can also help HR team members advance their careers or become specialists. "Give them the opportunity to come through for the team and further their career."
And despite potential revenue shortfalls due to the faltering economy, now isn't the time to reduce training. After all, if team members are going to be able to assist you more, they'll need the training to succeed, Bond-Hillman said.
"Yes, there's a feeling you don't have time, but if you don't make the time, it will potentially be a disaster in executing the work," she said. "Many HR people struggle because not everyone is cross-trained."
Seek Inexpensive Support
Seeking part-time help from a temp or college intern is another popular option this summer, said Heather Deyrieux, SHRM-SCP, HR manager for Sarasota County, Fla., and president of the HR Florida State Council, a Society for Human Resource Management affiliate. "We've had an intern just for the first couple of weeks of the summer, and she has been very helpful," Deyrieux said. "You can even look for volunteers—there can be many of those, especially if it's remote work."
Keeping morale up also is important and may be achieved by making sure everyone in the HR department sees team leaders rolling up their sleeves and doing tasks that may have been handled by others before the pandemic. It's also wise for those leaders to keep their office doors open and be available early and late to help answer questions and address issues, Bond-Hillman said. "A team has to be just that–a team."
Debora Roland, a Los Angeles-based vice president of HR at CareerArc, said seeking opportunities to allow the team to recharge is critical. "Your team, however big it may be, is working tirelessly during these times, and showing appreciation can go a long way," she said. "One way to do this is to give team members time off when it's needed. We're all in such high-stress times, and providing days off to recuperate and reset can make a world of a difference."
If providing time off isn't possible given the workload, showing appreciation can help. "Give a gift certificate to their favorite restaurant or something else they like," Deyrieux said. "This way you show appreciation, but you also show them that you pay attention to their interests. People need to know they're not just another employee."
6 Ways to Support an Understaffed HR Team
- Identify the company's primary goals during the pandemic and share it with the team.
- Ease the team's hours through automation or help from a temp, an intern or a volunteer.
- Be in the trenches with team members by taking on menial tasks and arriving early and/or staying late.
- Show appreciation, even if just in a small gift.
- Give additional responsibility that could lead to a promotion.
- Provide training so your team members feel they're in a good position to take on new responsibilities.
SOURCE: Butterman, E. (09 July 2020) "How to Prosper When HR Is Understaffed" (Web Blog Post). Retrieved from https://www.shrm.org/resourcesandtools/hr-topics/organizational-and-employee-development/pages/how-to-prosper-when-hr-is-understaffed.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
3 tips for a successful virtual internship program
The coronavirus pandemic has created many disruptions for the workforce and many workplaces. Another disruption that has been caused has been a disruption in career development that is gained through internship programs. Read this blog post to learn more.
The COVID-19 pandemic has disrupted all manner of talent development and acquisition activities, including internship programs.
Talent acquisition software firm Yello found in an April survey of college students that more than one-third (35%) of those who had accepted internship offers had seen their internships canceled, while 24% said their internships would be virtual. A separate April poll of employers by the National Association of Colleges and Employers found 22% of employers revoked offers to interns but that generally, "employers are adapting their summer 2020 internship programs by moving as much programming to a virtual space as possible."
Indeed, a number of larger employers have announced in recent months an intent to move internships to virtual status, similar to other roles. Microsoft, which was set to host 4,000 interns this summer, announced its shift to a virtual program in April. Kathleen Hogan, the company's executive vice president and chief people officer, previously said that students would be encouraged to "co-create their summer experience" while the program would also help shape the company's broader virtual employee experience.
Below are three ways employers can enhance their virtual internships.
#1: Choose accessible tech tools
In the scramble to move operations remote, employers have likely settled on solutions for video chat, team communication, presentations and other organizational functions. But it's important that these tools are available and accessible to interns, Bo Goliber, Head of Philanthropy at marketing agency Fingerpaint, told HR Dive in an email.
"We have some tools that work best for smaller, internal meetings, and others that we use for our clients," said Goliber, who is the creator and manager of Fingerpaint's internship program. "Our interns have access to anything our full-time staff would be using."
Shared software can enable interns to work in company systems using their own computers. That's the approach taken by Fannie Mae this summer: The mortgage financing company's nearly 140 interns use programs like Microsoft Teams, Whiteboard and Cisco Webex, Teresa Green, vice president of talent acquisition programs, told HR Dive in an interview. To keep in touch with team members, Fannie Mae's interns also have access to Yammer, a social networking service, as well as a dedicated Microsoft Teams site.
#2: Ensure equity
Even before the pandemic, employers considered a variety of factors, including manager reviews, when assessing interns' performances. In a virtual environment, managers at Fannie Mae work with interns to develop summer work plans that outline an intern's tasks and target skills to be developed and later used as the basis for evaluations, Green said. The company is also collecting feedback from other team members on their interactions with interns.
At Fingerpaint, both managers and interns fill out evaluation forms with questions that focus on areas including communication, presentation, performance and overall skills, Goliber said. The company schedules additional check-ins with teams, managers and the internships facilitators at each of its individual offices.
"Our expectations for both interns and managers remain high, and we ensure proper training to navigate through any possible challenges that may arise from being virtual," Goliber added.
The issue of compensation has been one of concern for recent graduates as they endure the pandemic. Previous research cited in a 2019 analysis by researchers at the Stanford University Institute for Economic Policy Research showed that college graduates who started their working lives during a recession earned less for at least 10 to 15 years than those who graduated during more prosperous years. As COVID-19 impacts interns, some companies have publicly stated their intent to pay interns through the pandemic, sometimes regardless of delayed start dates.
Neither Fingerpaint nor Fannie Mae are changing the ways their interns are compensated this year, Goliber and Green said. In fact, Fannie Mae is also continuing to offer payments to interns for summer housing and commuting costs that have been offered in previous years. "We still honored that, because they made some of those investments already and we didn't want to put them at a disadvantage," Green added.
Fingerpaint has not wavered from the compensation promised to interns in the company's offer letters sent back in February, Goliber said: "Because the capabilities and expectations of our interns did not change, we believe the interns should be paid for their talent and work, no matter where they are physically performing it."
#3: Keep traditions and culture alive
Experience has been a key point of focus for HR departments as employees remain socially distanced, and Fannie Mae has extended this focus to internships by creating "business mentors," a new internal role, according to Green. Business mentors work with interns on building relationships, connecting them with other employees and identifying mentorship opportunities.
The initiative is in part meant to provide a replacement for the lack of "casual collisions," or chance interactions, interns might otherwise have with other employees in a normal office setting, Green said. Fannie Mae interns have connections with their managers, "but we knew they needed more than that," she added. "We needed to create another way to engage with them and show them other areas across the company."
Virtual meetings have replaced coffee runs and lunches for many employers, but interns should have the opportunity to participate as well, Goliber said, which is why Fingerpaint designates times for virtual meetings that allow interns to connect. "We want to ensure everyone feels seen and heard — not only as an intern team, but also as individuals," she added.
Employers should also plan to keep annual traditions alive, however small. Fannie Mae interns will still receive t-shirts, Green said, but they also have the opportunity to participate in virtual community service events. The company confirmed to HR Dive that its interns will participate in a virtual event with the nonprofit Love for the Elderly, collecting homemade cards and mailing them to global older adult communities.
SOURCE: Golden, R. (30 June 2020) "3 tips for a successful virtual internship program" (Web Blog Post). Retrieved from https://www.hrdive.com/news/3-tips-for-a-successful-virtual-internship-program/580803/
Rethink Work-from-Home Employee Perks
Working from home has become a new normal for many employers and employees. With that being said, it may be time to rethink employee perks that expand flexibility and customize work schedules. Read this blog post to learn more.
As working from home stretches into the summer and beyond at many companies, some firms are adopting interesting, innovative incentives to maintain engagement and productivity among telecommuting employees.
Most common among such perks is the expanded flexibility for personal time off and customized work schedules. But many employers consider those options to be table stakes and are raising the ante. Perks related to food and drink, camaraderie, dress code and new technology are being introduced as HR rethinks and adjusts company culture.
"Pre-COVID, working from home was considered a top employee perk," said Cheryl Fields Tyler, CEO of San Francisco Bay-area firm Blue Beyond Consulting. "Now, it's practically considered an entitlement. And with executives [seeing] how effective their home-working employees have been during this situation, it's likely to stick around even after the recovery."
At her firm, "our teamwork has really stepped up. People are supporting each other more and finding new ways to handle responsibilities to get through this, which will be the lasting benefit of this 'change'."
At IBM, CEO Arvind Krishna created and shared a special eight-point pledge that went viral as a model for other C-suites to follow, putting a "human touch" on his entire workforce.
"With employees and companies making such strides in work-from-home execution, there's going to be a massive rethinking of just how you build culture," Fields Tyler said.
Informality Catches On
Many companies are creating clever ways to connect remote employees during and after the workday ends, usually with fun in mind.
Tampa HR consultant Michelle May Griffin, SHRM-CP, has clients who have created a virtual coffee klatsch once or twice a week, designed with an impromptu gathering-in-the-breakroom feel. "Supervisors aren't invited," she said. "Staff can come and go. It's very informal. People can eat lunch or have a cup of coffee and just talk about anything they wish."
At Centurion, a health care company based in Vienna, Va., HR created a voluntary lunch-time video meeting for employees on Zoom to talk about things other than work, said Jennifer Tyrrell, SHRM-SCP, senior director of HR.
"We did one that was called 'Get Up and Move' based on fitness videos so employees could be active, but that didn't draw a huge crowd," she joked. "Others had better participation, such as 'Just Social: Brown Bag Lunch Buddies' for remote workers to take a break and have virtual lunch to catch up with co-workers, and end-of-day Friday happy hours, including one where we played Pictionary."
Griffin shared another story of a small client. On one Friday afternoon, HR reached out to all employees and took drink orders. It then set up a virtual happy hour on Zoom where employees used their drinks—that the company personally delivered to their homes—to toast another great week.
"The company did a good job, packing them in baskets with other goodies," Griffin said.
As for food, some larger companies are offering stipends for daily lunch pickups or delivery, which has become an unanticipated expense for remote employees "now that they aren't able to take advantage of full cafeterias at work every day," said Chris Hoyt, president of CareerXroads, a membership-based talent community of more than 150 companies.
Zoom Fatigue
Virtual meetings have become so common at most companies that "there is more and more talk of blocking out meetings on multiple days each week to reduce stress and prevent 'Zoom fatigue,'" Hoyt said. "For some, there are entire days where either no meetings are called, or at least none that involve a video log-in. That's a well-being perk."
As for home offices, tech equipment stipends can make work and life easier. Hoyt said one organization gave its remote employees full access to a virtual ergonomic assessment that could help determine what equipment they would need to work most productively and funded those purchases.
At Iona, a social services group in Washington, D.C., employees were provided with office furniture and computer technology delivered to their homes, with set up-help provided, said Stacey Berk, a managing consultant with Expand HR Consulting in Maryland. "They bent over backwards to help their employees," she said.
At some companies, encouragement to take a summer vacation is a well-received perk. "Having spent so much time over the past few months working from home, [employees] are pivoting to summer rentals in remote places instead of theme parks or family reunions," Berk said. "Some employers are allowing staff to extend that time away if they split their work time, and may offer to pay for Wi-Fi connections, additional temporary office resources and supermarket gift cards for these types of vacations so that they can productively work in this capacity."
Wellness Well-Done
Berk sees a trend where clients are providing wellness "relief" to their workers by having group stress-relieving exercises, guest virtual speakers or even comic relief, such as themed summer dress-up days. Hoyt agrees that wellness has become an emerging front for many HR leaders.
"Some have been pushing for the ability to incorporate ideas and strategies for years and now are realizing that the pandemic [is the final catalyst] to get initiatives off the ground and running," he said.
"Some company fitness centers are offering virtual workouts much like commercial gyms do," Hoyt added. "A few employers' in-house trainers are getting creative with programs for people who may not have equipment at home but can do workouts with whatever equipment they might have around."
Personalized mental-health care program offerings also are gaining popularity, Hoyt said, such as LyraHealth and Headspace. Both focus on mindfulness and meditation for stress, anxiety, sleep, attention and fitness and enable participants to track their progress. Other popular programs include MeQuilibrium, a well-being and performance platform that helps employees identify and manage stress; and Sleepio, a digital sleep-improvement program featuring cognitive behavioral therapy techniques.
Gifted and Talented
At BHI Insurance in Newark, Del., which boasts 28 employees, HR Director Maria Clyde, SHRM-SCP, offered everyone a list of electronics to choose from as a thank-you gift for adapting well to working from home. She budgeted $40 to $60 per gift.
"We thought that was fitting since everyone who is working remotely is looking to make their lives (and their kids' lives) easier," Clyde said. "I've also seen companies providing headphones and streaming services like Netflix or Disney+ for the kids. People are getting really creative!"
Charitably conscious, Hoyt said some companies are matching or double-matching employee donations to local organizations or for anything related to front-line workers and PPE creation and distribution.
Other benefits that companies can define as perks, Berk said, are a relaxed summer dress standard and the ability to work outdoors, which shows up as an employee's background in virtual meetings. "By not having to wear a blouse or dress shirt, think of the money employees are saving in dry cleaning because they can dress casually," she said. "It's not a lot of savings, but it helps."
Giving employees a greater voice can be considered a perk for some employees. Organizations that previously conducted one employee survey a year—or even every couple of years—are now conducting them more frequently, Berk said. "This gives employees more of a chance to be heard and to have a voice in some policy decision-making, which is one perk you cannot put a price tag on."
Tyrrell said Centurion has conducted more employee surveys recently and found that 90 percent of employees expressed confidence in how the C-suite has been dealing with the crisis, while at-home distractions ranked second lowest among employee challenges.
Many companies are creating incentives for work-from-home employees to voluntarily return to the office. Campus Advantage, an owner and manager of off-campus university student housing, has 70 employees assigned to its Austin, Texas, headquarters.
"Many workers are still afraid to come back," said Angela L. Shaw, SHRM-SCP, vice president of HR. "Our office has a mojo committee that creates fun office events, and we've offered those in the office breakfasts, Taco Tuesdays and yoga classes. On average, we'll have about five employees come in. The others are happy to continue working from home."
Perks on the Chopping Block
Many companies are planning for the next wave of the coronavirus, one that is expected to hit them hard financially during the second half of 2020 and beyond, Berk said. Traditional employee perks likely will be impacted, at least for the short term.
"Expect perks like traditional staff-wide wellness benefits, such as gym memberships, discount programs and celebratory gatherings, will be cut or eliminated and replaced with more modest offerings," Berk said. "Companies are quickly adjusting forecasting and budgeting for the coming year based on the realities of the pandemic. The reimagined office layout and sanitation will be at the forefront for HR and executives, and you could see companies reducing employee benefits, eliminating increases, bonuses, education stipends and executive perks. With the post-pandemic workforce, they have to account for a big in-office sanitation budget and potential reduced profits."
SOURCE: Bergeron, P. (01 July 2020) "Rethink Work-from-Home Employee Perks" (Web Blog Post). Retrieved from https://www.shrm.org/resourcesandtools/hr-topics/employee-relations/pages/rethink-work-from-home-employee-perks.aspx
Viewpoint: 12 Tips for Return-to-Work Communications
While employers begin to move their employees back into their offices, communication between team members may not be as strong as they were before working remotely. Read this blog post for helpful tips on communicating when returned to work.
While the move to working from home due to the COVID-19 pandemic happened quickly, the return to work will be slower and more complicated.
Employers that haven't made movement back to workspaces and office buildings should think carefully about the implications of the new six-feet-apart world. How will you handle an employee who refuses to wear a mask when required? When will you open the kitchens and make coffee and water available? How many people will you allow in a restroom at a time? Do people have to walk clockwise around the space? Where do you put hand sanitizer stations? Setting aside all of the logistics, how do and will employees feel?
Connect with Employees
Like any other workplace change, making sure employees are aware and understand this new world will be equally as important as the actual changes themselves. Training, education and effective communication are key to returning employees to the workplace.
Below are a number of tips to keep in mind as you communicate return-to-workplace situations:
- Develop a clear and detailed safe work plan, reviewing any policies that need to be updated.
- Write in plain, easy-to-understand language.
- Use images and diagrams where appropriate.
- Outline what building management is doing, how the company is supporting this effort and clear expectations for employees.
- Partner with legal counsel. They can help you steer clear of perceptions of discrimination and other potential employee relations or legal issues.
- Get input from your senior leaders. They should be knowledgeable and included well before you communicate to employees.
- Train your managers and supervisors on the safe workplan and what is expected of them. They are the front line of employee communications.
- Use different media to supplement a written plan. Hold a webinar and record it. Create a video, leverage your online employee portal, or do a podcast.
- Make good use of signs throughout the office to help with key behaviors, including directions to walk down aisles in one direction or to designate one stairwell for walking up and another for walking down.
- Be clear where employees should go with questions.
- Start communicating before workers are allowed (or expected) to return to the workplace, and keep communicating to address new issues and concerns as they arise.
- Explain that the situation is fluid and manage expectations by noting that when new information becomes available the plan will be updated. Communicate those key changes with leadership and employees.
Careful Not to Overdo It
Especially now, employees want to understand what you are doing to keep them safe and to believe that you care. But you don't want to overdo it, either. Whether it's due to a lack of trust or excess worry, some organizations are holding more meetings than usual to "check-in," which employees can find invasive and intrusive.
If "eyes on your employees" was your primary form of performance evaluation, you might be feeling unsettled in this new work-from-home arrangement. In most situations, you've likely hired responsible, talented people who want to, and will, do good jobs under any circumstance. Trust they will, and reward them when they do.
Tip: Let them dictate the check-in frequency. Be willing to tailor your approach to the communication needs of the individuals or groups. Then, over time, survey your employees and ask them how it's working, especially the frequency and content of communications.
Wherever you are along this journey, don't forget employees' needs have shifted and will likely continue to change. Be flexible and willing to adjust your communication approach constantly. Look for that Goldilocks communication approach—not too much, not too little, but just right.
SOURCE: Foster, D. (26 June 2020) "Viewpoint: 12 Tips for Return-to-Work Communications" (Web Blog Post). Retrieved from https://www.shrm.org/resourcesandtools/hr-topics/benefits/pages/12-tips-for-return-to-work-communications.aspx
How employers and the economy win with remote work
Employers have been highly affected by the situations that the coronavirus pandemic has brought upon them, but so has the economy. The coronavirus has seemed to bring in a dark cloud over most situations, but now it can be looked at as helping both employers and the economy with the remote working situations. Read this blog post to learn more.
As high profile employers such as Twitter and Slack announce that they will allow employees to work from home indefinitely, other organizations have also noticed the advantages of a remote work model.
Aside from increased productivity and improved mental health for employees, employers can save $11,000 per employee on office costs and even reduce their carbon emissions, says Moe Vela, chief transparency officer at TransparentBusiness, a company that provides a remote workforce management platform.
When it comes to remote work, ”everyone wins across the board,” he says. “Remote work should be viewed no differently than a healthcare insurance package, dental insurance, paid time off, sick leave, or family leave.”
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Vela shared his thoughts on why remote work is the new normal and how employers can use technology to ensure that the experience for their employees is seamless.
How does remote work benefit employers and employees?
Employers benefit tremendously. On average, an employer saves $11,000 per year per employee in a remote workforce model. They need less commercial office space, so their bottom line actually improves because they can cut down on their office expenses. If you have 500 people in an office setting, that's 500 people you need supplies, equipment and infrastructure for — those costs get dramatically reduced or go away completely.
The other benefit to the employer is that productivity goes up in a remote workforce model. There is less absenteeism, workers are happier and also healthier because you're not confined in an office space spreading germs.
Your work life balance is improved dramatically by a remote workforce model for employees. On average, an employee gets two to three hours of their day back into their life because they don't have to commute. That's two to three hours you can spend with your family, that you can engage in self care, that you can run your errands, whatever it is you choose to do.
What advantages does remote work have outside of work?
One beneficiary in a remote workforce model is the economy. When those employees get those two to three hours back, guess what they're doing: they're spending money that was not being put into the economy before.
Another beneficiary is the environment. During this pandemic, there are around 17% less carbon emissions being emitted into the atmosphere and the environment. Climate change is impacted and our environment is a winner in a remote workforce model.
How can employers ensure a seamless remote work experience?
There are three fundamental technologies on the marketplace that every employer should immediately start using. Number one, video conferencing. We're all using it, it works just fine, you’ve got a lot of options in the marketplace from Skype to Zoom, to Google. Number two, file sharing. You have all kinds of file sharing software and services out there in the marketplace. Number three, remote workforce management and coordination software. All you have to do is implement them, and the risk is mitigated almost to nothing.
How can an employee approach management about working from home permanently?
Don't be afraid to ask your employer. Communicate your request very succinctly and very clearly. Let your boss know that you've thought this through. Prove to them that you have the self-discipline, that you have the loyalty, that you're trustworthy, and that you have the environment at home to be effective at working remotely. Use the fact that you've already been doing it as an affirmation, to attest to the fact that it can be done seamlessly and productively.
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