New direct primary care rules are a tough pill for HSAs
For many Americans, direct primary care has taken control of medical costs, which has cut through many frustrating options and has created a peach of mind when it comes to both health and its costs. Read this blog post to learn more
As an employee benefits attorney and compliance consultant, last summer’s executive order on “improving price and quality transparency in American healthcare to put patients first” piqued my interest. In particular, I honed on in section 6(b), aimed at treating expenses related to direct primary care arrangements as eligible medical expenses.
As someone dealing with a complicated medical history, digging into the order and digesting the resultant proposed IRS rule was more than my job – it was and is part of my life.
Several years ago, I decided to give direct primary care a try. For about $100 a month, I gained direct access to and the undivided attention of a physician who knows me and my unique medical needs. I pay a flat, upfront fee and my doctor coordinates and manages my treatment, which isn’t always smooth sailing for someone dealing with a complex connective tissue disorder. My primary care physician serves as the coach and quarterback of my medical care, directing tests, meds, and visits to various specialists like rheumatologists or neurologists. If I have a common cold or infection, she’s readily available to prescribe treatment and set my mind at ease.
Since arriving on the scene in the 2000s, direct primary care has grown in popularity and availability. In the age of skyrocketing monthly premiums and a multitude of confusing options, more Americans are flocking to direct primary care to supplement their existing coverage. Some employers are even looking at it to drive down costs.
Now, direct primary care only covers, well, primary care, so I’ve paired it with a high-deductible healthcare plan and a health savings account to pay for my many additional medical expenses. I’m not alone: more than 21 million Americans are following the same path.
However, rather than making direct primary care more accessible, the proposed regulations actually make it virtually impossible for all of us with HSAs. Remember, by law, to qualify for an HSA, individuals must be covered by a high deductible health insurance plan. The rationale for this is consumers with more on the line are more responsible in controlling their health care costs and thus rewarded with the tax-advantaged benefits of an HSA.
Here’s the problem: the proposed regulations define direct primary care as a form of insurance – one that is not a high-deductible health plan and would therefore disqualify me from having access to an HSA.
Regulators point out that direct primary care arrangements provide various services like checkups, vaccinations, urgent care, lab tests, and diagnostics before the high deductible has been satisfied. According to the preamble to the proposed regulations, “an individual generally is not eligible to contribute to an HSA if that individual is covered by a direct primary care arrangement.”
Keep in mind, 32 states consider direct primary care a medical service rather than a health plan and exempt it from insurance regulation. Even the Department of Health and Human Services shares that view, noting in a March 12, 2012, final exchange rule that “direct primary care medical homes are not insurance.” In addition, the proposed rule itself includes some contradictory language and implications when it comes to defining direct primary care relating to other factors.
By its very nature, direct primary care is a contract between patient and physician without billing a third party. In cutting out the insurance companies, it seems obvious that direct primary care is not a competing insurance plan, but instead, a valuable service that can accompany existing coverage.
Furthermore, there is no clear justification for painting direct primary care as disqualifying medical insurance for those with HSAs. The IRS has more than enough flexibility and discretion to determine that direct primary care does not count as insurance. Regulators could do so while still treating direct primary care as a tax-deductible medical expense, which seems to be the intention of the proposed rule in the first place.
For millions of Americans, direct primary care has been a godsend in taking control of medical care, cutting through frustrating options, and gaining peace of mind when it comes to both health and healthcare costs. In short, direct primary care is everything primary care should be and was supposed to be. It’s an option that individuals should be permitted to access to complement (not compete with) high deductible health insurance plans and HSAs.
Although the comment period for the proposed regulations is now over, I am hopeful with a few tweaks and small changes they can better align with the stated purpose of the executive order, empowering patients to choose the healthcare that is best for them. If not, the new rules would likely be a hard pill to swallow for the entire direct primary care community.
SOURCE: Berman, J. (26 August 2020) "New direct primary care rules are a tough pill for HSAs" (Web Blog Post). Retrieved from https://www.employeebenefitadviser.com/opinion/new-direct-primary-care-rules-are-a-tough-pill-for-hsas
Meal program provides healthy lunches to remote workers
The coronavirus pandemic has placed many disruptions in the day-to-day lives of employees, which has caused both mental and physical challenges. Research has shown that more people are now snacking or eating more now, due to the quarantine brought upon many. Read this blog post to learn more.
Disruptions from the coronavirus have infiltrated the daily lives of employees, causing challenges to both our mental and physical well-being. Focusing on proper nutrition is on the back burner for many.
Twenty-seven percent of people reported snacking more during coronavirus, and 15% said they are eating more often than usual, according to a study by the International Food Information Council. Forty-two percent have been relying more on pre-packaged foods than in the previous month, despite believing they are a less healthy option.
“The quality of fuel we put in our body ultimately controls the output,” says Michael Wystrach, CEO of Freshly, a meal subscription service. “So how well our brain functions, how our emotions and hormones are released, how productive we are, it really does start with diet.”
The coronavirus has exacerbated the challenge of accessing healthy food for many across the United States. While there has been a skyrocketing demand for groceries and grocery delivery services during the pandemic, 37 million Americans are considered “food insecure,” meaning they lack access to affordable and nutritious food options.
To address those concerns, Freshly created a new meal service called Freshly for Business to provide healthy and affordable meals for employees working remotely. The program allows employers to offer free or subsidized meal plans consisting of up to 12 meals per week. Employers including PwC and KPMG, among others, are partnering with Freshly, which costs an average of $8 per meal per employee.
“We used our platform to solve the needs of customers who are saying, we have a lot of employees working at home who are working hard but are strained and have a lot of challenges on their plates,” Wystrach says. “Employers wanted to provide them a benefit of healthy food by signing up a few dozen to thousands of employees very quickly.”
Lack of proper nutrition can have devastating and expensive consequences: In the U.S., 40% of adults are obese, and 90% of overweight individuals have prediabetes or Type 2 diabetes, a condition often caused by poor diet. According to the American Diabetes Association, the cost of medical expenditures and lost productivity due to diagnosed diabetes was $327.2 billion in 2017, the most recent data available.
“Type 2 diabetes is the fastest growing disease in America, and it’s principally caused by poor diet. It takes a huge toll on employers and employees,” Wystrach says. “One of the challenges now is the traditional lunch hour is gone and convenience is the pinnacle. But we make poor decisions when we rely on convenience with our food.”
Providing food in the workplace is a much desired benefit, with 73% of employees saying they want healthy cafeteria and snack options at work, according to a survey by Quantum Workplace and Limeade. However, just 32% provided free snacks and food, and only 17% had an onsite cafeteria available for workers, according to the Society for Human Resource Management.
As employers begin considering their return-to-work strategies and how they will make their offices safe and their benefits supportive of the health and well-being of their employees, providing meal options should be a major consideration, Wystrach says.
“Especially as we think about social distancing, the less you’re sending your employees out, the safer everyone is,” he says. “Employers will also be thinking about healthcare costs post-COVID. How do they keep overall healthcare costs down? It’s really in everyone’s benefit to provide benefits that promote health and wellness.”
Meal offerings and proper nutrition are a win-win for employers and their workers, Wystrach says.
“Health and happiness ultimately creates a more productive employee,” he says. “When you’re trying to find a win-win for everyone, it drives productivity, it creates happy employees, and it reduces cost over time. There will continue to be a focus on benefits that provide that.”
SOURCE: Place, A. (12 May 2020) "Meal program provides healthy lunches to remote workers" (Web Blog Post). Retrieved from https://www.employeebenefitadviser.com/news/meal-program-provides-healthy-lunches-to-remote-workers
Top 4 HR trends to watch this year
How can HR professionals better engage employees, improve an organization's brand, and maximize productivity and profitability? Their success will rely on HR departments staying nimble and leveraging technological advances to help reshape workplace practices. Here are four HR trends to watch this year:
HR professionals can no longer rest on their laurels. They are now looking to implement innovative strategies to better engage employees, improve the company’s brand both internally and externally, maximize productivity and increase the organization’s profitability.
So how can HR professionals go about making this happen? The success of HR will largely be based on staying nimble, evolving their organization’s policies and leveraging technological advances to ultimately reshape their workplace practices.
With that in mind, here are the top HR trends that will take center stage:
The gig economy and the importance of flexibility. The gig economy, which is comprised of individuals with short-term or temporary engagements with a company, is substantially important to employers. Here, workers are seeking increased flexibility and control over their work environments. Since many questions remain unanswered regarding worker classification issues and the application of existing laws in the gig economy, look for the Department of Labor to issue an opinion letter or guidance in 2019 detailing how a company may compliantly work within the gig economy and not run afoul of existing independent contractors.
Flexibility also is important for all employees — not just for the gig economy. While telecommuting and remote positions are not new, they are being emphasized again to better engage employees and increase retention metrics.
The tech effect on future of HR. The strategic and consistent use of workforce data analytics to predict and improve a company’s performance has exploded over the last several years, with additional momentum expected in 2019. While most HR professionals rely on metrics for basic recruiting and turnover rates, more in-depth analytics and trend spotting has become the norm.
Once trends are identified in, for example, turnover rates, an HR professional should have the tools to dive into the data and analyze root causes, such as the need for manager training, review of compensation strategies or a change in the company’s culture. Using predictive analytics in the HR space is helping companies make better informed, dynamic and wiser decisions based on historical data, as well as placing HR on the level of other data-driven company departments, such as finance and marketing.
The collection of this enormous amount of data also poses challenges and potential risks to companies, including negative perceptions among employees about how their data is being used, employee privacy laws and potential security breaches. Strong and comprehensive security policies, protocols and controls are necessary to ensure employers are keeping their employees’ data safe. In 2019, a steady flow of communications to employees regarding advanced security and usage policies is key to prevent data misuse or misunderstanding regarding how information is collected and used.
Artificial intelligence also will continue to be a significant focus driving improvement in the HR arena. Determining which data to collect, analyze and protect will provide opportunities for AI to assume a larger role in HR. Also, in some large organizations, AI already is being used for more than just automating repetitive HR tasks, such as onboarding new employees. The future of AI for most companies will include creating more personalized employee experiences as well as supporting critical decisions. From analyzing performance data to eliminating biases when screening candidates, AI will continue to be a pivotal HR tool.
Strategies for successful recruitment. Running an effective talent pipeline should be the objective of all hiring endeavors. Pipelining is consistently gaining traction as a recruitment tool for new employees. The concept employs marketing concepts to ensure that companies have a diverse group of strong recruits waiting to be hired. Pipelining reduces time to hire and leads to better quality candidates.
Health, wellness and adequate employee training. Another area of importance is multi-faceted wellness programs, which focus on an employee’s total well-being, from nutrition to financial wellness. These programs often include a comprehensive employee assistance program, training and activities during worktime. The training can focus on anything from physical health to development of employees’ knowledge base and technology-focused education. A greater emphasis also is being placed on workplace communication coaching, such as collaboration and negotiation, which are critical to success in the workplace.
Continued training and heightened prevention of sexual harassment and discrimination will be another trend this year. Organizations big and small must ensure that compliant policies are in place and employees are trained on the policies. Several states including California, New York, Connecticut and Maine already mandate that private employers must provide harassment training to workers, and the number of states requiring this training is expected to increase in the coming years.
SOURCE: Seltzer, M. (03 January 2020) "Top 4 HR trends to watch this year" (Web Blog Post). Retrieved from https://www.benefitnews.com/opinion/top-4-hr-trends-to-watch-this-year
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
Why employers should consider adding volunteer time off benefits
Employers are being pushed to become savvier with social responsibility causes and their benefit offerings with the strong job market. This is giving rise to volunteer time off benefits. Read this blog post from Employee Benefits News for more on why employers should consider adding volunteer time off benefits.
The strong job market is pushing employers to become more savvy about socially responsible causes. This is giving rise to volunteer time off benefits as one popular strategy for employers seeking unique ways to attract and retain talent.
Indeed, 65% of companies offered paid time volunteer programs in 2018, according to data from the organization Chief Executives for Corporate Purpose, which looks to help companies transform their social strategy. That figure represents a 4% rise from 2017.
Organizations that offer employees paid days off to volunteer their time and support the nonprofit causes they care about are going to be more attractive to job seekers.
“Offering VTO as a benefit for employees is one of the best ways to engage employees with their local communities through volunteering and donations,” says Jeff Fraley, vice president of corporate engagement at United Way of the National Capital Area, an organization that provides relief of social problems affecting the community. “It encourages employees to participate in social good and helps to foster meaningful relationships within a community and the company itself.”
About 75% of millennials expect their employer to participate in social good, either with donations or through volunteering, according to a Glassdoor survey. Additionally, 51% of workers expect their employers to allocate work time and resources for their employees to volunteer for social causes.
United Way took a look at VTO benefits across the country in an effort to better understand these programs from an employer/employee perspective. The survey looked at the demographics of 49 large U.S. companies that offer VTO in order to get a sense of the types of workplaces offering this benefit. What it found was that the majority of companies that offer VTO are headquartered in New York, and in or around Silicon Valley.
Additionally, of the 49 companies studied, 12 were in the professional services industry, 12 were in the information technology industry, and nine companies were in the financial services and insurance industries. The survey also uncovered that the maximum number of volunteer hours offered per year to each employee is 20 hours, which amounts to about two and a half days of volunteer time off.
If the company with the largest revenue headquartered in each state implemented one day of VTO, the projection of total volunteer hours in the U.S. would be over 75 million hours, or nine million days, according to United Way. It would cost companies, on average, $27.4 million to implement an annual eight hour VTO policy.
“VTO is just one option if you're looking to expand your impact in the community,” Fraley says. “An employer can also sponsor a nonprofit, match employee donations, or other philanthropic initiatives. What’s important is to think about some sort of incorporation of corporate social responsibility as we're seeing that it's an increasingly important criterion of employers for millennials.”
SOURCE: Schiavo, A. (2 December 2019) "Why employers should consider adding volunteer time off benefits" (Web Blog Post). Retrieved from https://www.benefitnews.com/news/why-employers-should-consider-adding-volunteer-time-off-benefits
6 steps to enhance your recruiting strategy
According to recent data from PwC, more and more potential employees are turning down job offers because of bad recruitment experiences. Often, when job candidates have a poor experience while applying for a job, they share the details of their encounter with friends, family and social media. Read this blog post for six steps employers can use to enhance their recruitment strategy.
Employers may be contributing to their organization’s bad reputation without even knowing it during the recruiting process
A strong labor market is presenting employees with more options, allowing them to weigh potential employers against each other, and eliminating the need to accept the first offer they get. Unique and inventive recruiting strategies are vital in attracting the right talent to your organization, but more potential employees are turning down job offers because of bad recruiting experiences, according to data from PwC.
Employers can develop some bad habits when it comes to recruiting, like dragging out the process and even ghosting candidates. When potential employees have a poor experience applying for a job with a company, they are going to share the details of that encounter with friends, family and the world at large thanks to social media.
“Job seekers today expect the hiring process to be streamlined, efficient and customized to their personal preferences, with effortless technology and sincere human interactions,” says Bhushan Sethi, a workforce strategy leader at PwC.
However, very few organizations are providing this experience, according to the PwC survey of 10,000 job seekers. Not only can a bad recruiting experience drive candidates away, it can also create lasting damage to an organization’s reputation as an employer.
“Leaders have an opportunity to gain an edge in the battle for talent by delivering a superior recruiting experience to every candidate, even those who don’t receive an offer,” Sethi says.
But there are ways to make a candidate’s recruiting experience more positive, even if they don’t ultimately get an offer. Here are six steps organizations can take to deliver a “first-rate” recruiting experience to potential candidates.
Find a balance between tech and human interaction
The human interactions candidates experience during the recruitment process makes a stronger impression than any digital experience, the survey shows. “Candidates want positive, direct human interaction throughout the recruiting process, whether that’s in person, over the phone or via email,” Sethi says. “Two-thirds of candidates said personalized initial outreach makes them more likely to apply for a position.”
Technology does have an important role to play in the recruiting process. However, recruiting technology is typically designed with the enterprise, not the candidate, in mind, Sethi says. Employers should look to utilize technology that streamlines routine tasks or makes the hiring process easier for job applicants. About 44% of those surveyed by PwC say they’re open to using automation and technology options for routine touchpoints and to get information during the recruiting process. Another 65% said they would like if an organization had an application dashboard so they could track their progress.
Communicate often and keep the process quick
More than half of job seekers (56%) said they would discourage someone else from applying for a job with a company where they had a bad recruiting experience, according to PwC data. A majority of job seekers (92%) said they’ve experienced poor recruiting practices at some point in their career. Candidates pointed out the two most frustrating behaviors by recruiters: dragging out the process by more than a month and recruiters who withdraw communication with no explanation.
“These practices are rampant: 61% of candidates said they’ve simply stopped hearing from an organization during the hiring process,” Sethi says. “And 67% gave up pursuing a role because the recruiting process took too long.”
Ask for social media details
About 50% of job seekers said they’d be willing to share their social media data with potential employers if it helps to determine a better job and organizational fit. Checking out a potential employee’s social media allows HR to understand more about the candidate. But candidates are only willing to share their social media data if the right privacy measures are in place. Recruiters can gain candidate’s trust by being transparent. About 78% of those surveyed by PwC said they expect the recruiting process to be clear on how personal data is used. About 77% of candidates said they wouldn’t apply for a job if they felt their privacy and information wasn’t protected.
Highlight the rewards potential employees most desire
Upskilling, personal flexibility and inclusion are three key aspects of workplace culture that have become more desirable among candidates than salary, according to PWC. Additionally, candidates are willing to give up 11.7% of their salary for more flexibility and training.
Give candidates a way to experience the company’s culture first hand
Today’s candidates are looking for more than a job, the PwC survey notes. They want an employee experience that provides a sense of purpose and pride.
“Culture is so meaningful that 33% of C-suite-level candidates said they’d take a pay cut to work for a mission-driven company that aligns with their ideals,” Sethi says.
It can be challenging for recruiters to provide an accurate sense of a company’s culture. Recruiters can help candidates experience this firsthand by holding networking and other social events.
Always be mindful of your reputation
When candidates have a bad recruiting experience it does more damage than recruiters realize. “It can cause lasting reputational harm and even hurt your chances of hiring the workers who are hardest to find,” Sethi says.
Almost half of candidates (49%) working in high-demand sectors like tech, banking and energy say they would be more likely to turn down a job due to a bad recruiting experience. Of those surveyed by PwC 71% say working for a company with a good reputation as an employer is more important than working for a well-known customer brand.
“That’s good news for small brands jockeying for talent with big-name competitors,” Sethi says. “You can gain an edge by cultivating and promoting a strong, positive reputation. It’s also a call to action for bigger brands: you can’t rely on name alone to attract talent.”
SOURCE: Schiavo, A. (9 December 2019) "6 steps to enhance your recruiting strategy" (Web Blog Post). Retrieved from 6 steps to enhance your recruiting strategy
Key factors in choosing your benefits during open enrollment
Employers are now realizing that in order to attract and retain talent, they have to provide the best benefits. But, how do employees select the right benefits out of all the available options? Read the following blog post from Employee Benefit News for a few key factors to consider when choosing your benefits during open enrollment.
Even if you are a veteran in choosing employer-sponsored benefits, the landscape is shifting. Over the past years, we’ve seen changes to mental health counseling stipends, extended maternity/paternity leave and family building. Companies across industries are realizing that in order to attract and retain talent, they need to provide best in class benefits that save employers unforeseen costs in the long run, and shows employees that their employers are invested in their wellbeing — in and out of the office.
With all these available options and only a short window to select what’s right for you, here’s what should you look out for during open enrollment.
Which benefits matter to me?
The beauty of a diverse workforce is that employees may represent various walks of life. However, this means that not all benefits make sense for every person. Perhaps your boss is prioritizing childcare for his toddler while your colleague is looking to refinance student loans. Whatever your life circumstance, ask yourself, “Which benefits are most pertinent to my life and life goals in the coming year?”
For instance, fertility benefits may not be immediately attractive at first glance, even if you’re actively thinking about starting a family. But 1 in 8 couples will be impacted by infertility and treatment without coverage can be wildly expensive. It’s important to make sure you’re thinking critically and getting all the necessary information when browsing for your benefits. Rule of thumb: if this could impact you in the coming year, even if you’re not 100% sure, opt-in for coverage.
What’s actually covered?
During open enrollment, be sure to ask your benefits team about how robust each offering is and what’s included. A particular benefit may look like it has a lot to offer, but after further investigation, you may uncover restrictions, unforeseen out of pocket costs and other obstacles that may make it harder for you to utilize the benefit.
With fertility benefits, many conventional carriers offer coverage with a dollar maximum, meaning you’d max out on coverage before completing a full IVF cycle. Plus, there are additional costs outside of the basic IVF procedure, like diagnostic testing, medications, and genetic testing which may come with a hefty price tag you’d have to pay for. Without adequate coverage, many people have to make cost-based decisions, forgoing the technology they need to reach a successful outcome.
As an alternative, Progyny’s coverage is bundled, meaning your entire treatment event is covered and you do not have to worry about what is or is not included, or fear running out of coverage mid-way through. Many vendors have similar disruptive solutions to ensure they’re not leaving their members high and dry during difficult times.
When sifting through options, be sure you’re asking what’s covered and not covered under your plan. A lot of benefits may seem expansive, but make sure you’re getting the most out of the coverage that’s available to you. Ask: Are the best clinics in your area included in your plan as “in-network”? Do you have to meet medical necessity requirements before being allowed to access your benefits?
Which benefits are supported?
Once you’ve opted in for benefits during open enrollment, how do you access your benefit? How do you move forward with treatment? Does your benefit provide access to the doctors in your area? Since many of these offerings are complex and without proper onboarding, how can you be expected to understand the next steps?
With the growing emphasis on mental health and concierge member experience, companies like Progyny try to eliminate some of the member’s burden and create an easy to use benefit model that provides member support. For example, our dedicated Patient Care Advocates — a concierge-style fertility coach — helps members navigate the clinical and emotional aspects of your fertility treatment, making a difficult process a bit easier.
Another important factor to consider when shopping for benefits is access to care where you live — are the doctors that your insurance covers close by and easy to get to? When choosing your benefits, look out for any information about access to support. The goal of a benefit is to make your life easier, not leave you feeling confused and stressed in times of need.
What do I do if I’m unhappy with the benefits offered during open enrollment?
Often times, employers are unaware of what an employee wants until it’s brought to their attention. If you are unhappy with the benefits offered, raise the issue with your HR team! You are your own best advocate and change begins with you.
Not sure where to start? If you are comfortable, speak with your colleagues. Seek out a company resource group to see if others have similar needs. This way you can help form a plan or a way to approach HR. Once you have an idea of what you need, talk to HR to explain why the proposed benefit would be pertinent to you and your colleagues. Employers understand that the key to keeping good talent is making sure they’re happy.
Open enrollment can be overwhelming but take advantage of the resources you have. Ask questions, do your research, and discuss the options with experts in your office. With an arsenal of helpful information at your disposal, open enrollment should be stress-free and get you excited for all of the incredible employer-sponsored benefits in your future.
SOURCE: Ajmani, K. (25 November 2019) "Key factors in choosing your benefits during open enrollment" (Web Blog Post). Retrieved from https://www.benefitnews.com/opinion/how-to-choose-benefits-during-open-enrollment
Know your people, know your data: Keys to measuring employee engagement
According to research, over half of employees believe that health insurance is important in terms of their job satisfaction. Read the following blog post for ways employers can measure employee engagement.
Offering a total compensation and benefits package that fits employee needs drives morale, motivation and performance in the workplace.
Simply put, people who are happy and healthy are more productive. When an organization offers benefits that appeal to employees (and workers know how to use these benefits) employers should see an increase in total productivity.
On the other hand, if a company is off the mark with the total compensation package, or simply hasn’t communicated the benefits to people correctly, it will either see unchanged productivity or a decline. Organizations struggling to find improvement in productivity should look at their employee benefits offerings for answers.
Providing effective group health insurance and well-being programs is a good way to reduce the amount of sick leave worker's take. If employees promptly get healthcare when they’re ill, they’re more likely to be healthier overall. If an organization doesn’t offer appropriate health benefits, the result can be presenteeism.
Additionally, the cost of presenteeism multiplies when sick staff are contagious. One sick person refusing to take a day off can snowball into multiple people arriving ill to work on subsequent days. When illnesses reach critical mass and it’s harder for people to recover from things like the flu or a cold, organizations may find themselves short-staffed when employees finally pay to see a doctor.
Job satisfaction and morale are also linked to employee benefits. Research shows more than half of employees believe that health insurance is important in terms of their job satisfaction — even more crucial if staff live in an area where medical services are expensive.
Strategies to measure benefits engagement. HR staff have multiple ways of measuring how certain workplace functions are performing. Here are some effective methods organizations can use to measure benefits engagement.
Staff surveys. Questionnaires that seek to understand what benefits your staff know they have, and how they’ll use them.
Pulse surveys. Asking staff short, frequent questions about a benefits platform.
Focus groups. Gathering cross-functional groups of staff members together to have a facilitated discussion about benefits.
Exit surveys. Include questions about benefits and satisfaction levels during exit surveys, and then investigate what their next employer might be offering to have lured them away.
If organizations are not regularly questioning how well their benefits plan is performing, they may be missing an opportunity to get key insights into how employees feel about their packages.
Offering employee benefits isn’t just to support an organization’s staff, it should also support an organization’s long-term sustainability. Employee engagement is one key measure. The challenge for organizations is ensuring not only that they include benefits that will be relevant to staff, but also that they properly educate them in what those benefits are.
The less staff are educated on what benefits exist and how they can use them, the less likely they are to engage with them. Not having an appropriate communication strategy can often set benefits plan performance behind.
Working with analytics and claims data can indicate when specific benefits aren’t being used. Knowing what causes the lack of engagement requires a bit of discussion and investigation, but finding sustainable solutions is completely dependent on understanding whether the issue is the benefits themselves, or the communication to staff.
SOURCE: Rider, S. (1 November 2019) "Know your people, know your data: Keys to measuring employee engagement" (Web Blog Post). Retrieved from https://www.benefitnews.com/opinion/using-data-to-measure-employee-engagement
A benefits wishlist for millennial employees
Did you know: 63 percent of millennials would struggle to cover an unexpected expense of $500. With millennials becoming the new core of today's workforce, many employers are tailoring their job postings, descriptions and benefits to correspond with the millennial wish list. Read the following article to learn more.
Millennials are the new core workforce. Their concept of work is different than the standards set by previous generations. They bring bold, new approaches of what work should be, how and where it should be performed, and what the rewards for work should be.
While this has made some employers uncomfortable, millennials are not likely to change their ways. Employers must reassess their concepts to bring out the best of the unique millennial personality.
When I look at the U.S. workforce, I see a dramatic shift in the attitudes, personalities and attributes of millennials, which makes up the majority of the workforce. Millennials bring many positive attributes to the table, including a preference for flat management structures, multiple degrees, technological skills, energy and self-confidence. They also have high expectations for themselves, prefer to work in teams, are able to multitask and seek out challenges.
However, millennials have the highest levels of stress and depression of any generation. About 20% of millennial workers have suffered work-related depression. Millennials want their own living space, but they’re less likely to become homeowners because of student loan debt. Only 6% of millennials feel they're making enough to cover basic needs, according to an Economic Innovation Group national survey of millennials. As a result, 63% of millennials would struggle to cover an unexpected $500 expense. This generation wants to live within their means, but they’ve never been taught how — they need and want to be educated on how to achieve financial independence.
Think about your corporate strategy for attracting millennials. Here are just a few of the ways companies are tailoring their job postings, descriptions and benefits to correspond with the millennial wish list.
Working with meaning. Millennials want to have meaning in their work. Past generations may have worked simply because they needed to pay the bills. Millennials want to get paid too, but they also want to know that their employer is doing more than making and selling products or services. They aspire to social causes and want to know why the organization exists and how they can personally participate and contribute in that culture.
Continued personal growth and career advancement. Millennials want to be coached and have work-life balance. They want management feedback, even if it’s negative. Regular pay increases and promotions are important to them too. It shows that you’re invested in their career path and value their contributions.
Flexible hours and the ability to work remotely. They want flexible hours and the option to work from a location of their choice. This flexibility also contributes to their desire for no added workplace stress. Technology has made it possible to connect 24/7 from anywhere on any device. If you have yet to adapt your culture to accept this new norm, you’ll likely be missing out on this generation of candidates.
Technology. Millennials are smart-device people. Who better to move your organization forward than the individuals who grew up knowing how to download and use an app, or create a widget that solves a problem? They think technology-first and is required for any organization looking to remain competitive.
Financial wellness. A robust financial wellness program that includes self-directed education, competitions, games and rewards will pique millennial interest. Products and services like financial coaching, cashflow tracking, early wage access and credit resources that address their financial challenges will keep them engaged. Above all, a financial wellness program must be tailored to each individual employee to achieve maximum participation and behavioral change.
Employers must be vigilant in order to keep the best and brightest talent. They should also be proactive in managing their employees on a personal level, especially millennials. Otherwise, they are likely to be disengaged and move on — and that will cost money.
As managers and leaders of the organization, it is your responsibility to ensure that millennials understand their future in the company and to communicate that they don’t have to go somewhere else to advance. Employers and leaders have a responsibility to provide millennials with a desirable place to land, and a culture that encourages them to thrive. Don’t give millennials reasons to leave your organization. We need to support them, engage them, reward them and give them reasons to stay.
SOURCE: Kilby, D. (6 November 2019) "A benefits wishlist for millennial employees" (Web Blog Post). Retrieved from https://www.benefitnews.com/opinion/what-employee-benefits-do-millennials-want
Subway’s new program helps workers get degrees
What voluntary benefits does your organization offer? Subway is now offering a program that gives workers access to career readiness and high school diploma programs. Read the following blog post to learn more about this new benefit.
Subway is making it easier for employees to get high school and college degrees.
The sandwich franchise is launching a new education benefit for employees in 331 restaurants in central Florida. The program, which began piloting last month, gives workers access to a career readiness and high school diploma program.
“I think something like this really does bring value and improves the lives of [our] employees,” says Michael Robling, an operations specialist at Subway for North America.
Subway’s program includes a career readiness boot camp and high school degree program offered through Penn Foster. Robling says the company has partnerships with several universities to help employees get college degrees at a discount. The company also offers scholarships for employees through the Frederick A. DeLuca Foundation, a private foundation created by one of Subway's co-founders.
“This is definitely just a start,” Robling says.
This move comes after Mexican-inspired restaurant chain Chipotle began offering free college degrees to its 80,000 employees from 75 business and technology degree programs. Employees at Chipotle can earn their associates or bachelor degrees online from the University of Arizona, Bellevue University, Brandman University, Southern New Hampshire University and Wilmington University.
More than half of employers offer a tuition assistance benefit to employees, according to data from the Society for Human Resource Management. Indeed, companies including Disney, Walmart and Discover, Chick-fil-A, Hulu, Lowe’s, McDonald’s and Taco Bell all also announced education benefits last year.
Robling says he thinks more employers will begin to invest in benefits that help workers achieve higher education goals. Employees at Subway are appreciative of the opportunity and it may help the company retain workers long-term, he adds.
“If the franchise owner is looking out for me, I’m going to be happier at work,” he says. “That’s one of the big positives of this program.”
SOURCE: Hroncich, C. (11 November 2019) "Subway’s new program helps workers get degrees" (Web Blog Post). Retrieved from https://www.benefitnews.com/news/education-assistance-for-college-and-high-school-diplomas