How to Build a Motivated Workforce

Getting an engaged workforce requires employers to focus on nurturing motivation.m Employers need to nurture motivation in order to build an engaged workforce. Continue reading to learn more.


There’s a lot of buzz and conversation happening around the importance of employee engagement to a successful organization. But I believe that engagement is an overused or at least misused term. Engagement, to me, isn’t a process but rather an end-state where your employees are “all in.”

Engaged employees work hard on today’s priorities, and when they believe what they do matters and know that you’re invested in them, they will stay with your business for the long term and help you solve the challenges of tomorrow. But getting to this state of engagement requires focusing on nurturing motivation.

Simply put, motivated workers are more productive and efficient, and stretch themselves to do more. When employees are motivated, they get their work done faster and with greater levels of collaboration, creativity and commitment. A motivated workforce goes above and beyond to do what is in the best interest of the organization and, ultimately, the bottom line. So, what are ways you can truly motivate employees?

Set Clear Expectations and Goals, and Communicate Frequently

It’s a strange truth, but many employees simply don’t know what is expected of them at work. Workers are more motivated and engaged when they are given clear objectives, understand how they will be evaluated, and see how their efforts contribute to the bigger picture. Isn’t that what we all want anyway; to contribute to and be a part of something bigger than ourselves? When HR teams help create this clarity for our employees, they experience a greater “purposefulness” or “meaningfulness”  which in turn contributes to motivation. So how do you ensure organizational alignment and foster this sense of meaningfulness?

One critical step that HR leaders can take is working with managers to increase the frequency of communication around performance and goals. When employees work with their managers to set goals and then check in on progress on an ongoing basis rather than treating them as ‘set and forget,’ it can help improve employee motivation, elevate performance and benefit organizations overall. By increasing the frequency of conversations between managers and employees around progress towards goals, HR teams can take a huge step towards creating an effective performance management program for today’s workforce.

This ongoing endeavor isn’t easy.  There are time and commitment involved, and it only works when managers and employees are both invested in open and ongoing dialog about goals and expectations. But the more often managers talk to their employees, the more motivation and performance increases within the workforce. Even quick, informal check-ins, or “managing in the moment” to address priorities or give feedback boosts an employee’s sense that someone is invested in them, and drives motivation.

Spend Time Talking About Career Development

Motivation is tied to a future outlook. One critical way to boost motivation is to move away from ineffective, backward-looking annual performance reviews, and start coaching your managers around having more frequent conversations with their employees that focus on career development. By focusing on development, these conversations become more constructive, forward-looking, and connected to both personal and business objectives. Now you’ve motivated an employee because you’re actually talking about their future and showing you are invested in them!

Implementing performance management processes that are rooted in continuous conversations that center on coaching and career development is vastly more effective for motivating the modern workforce. Focusing on ”performance development” rather than “performance review” shifts the conversation around the process to a more forward-looking, positive and employee-focused stance. This can have a huge impact from an employee motivation perspective, rather than feeling like their managers are micromanaging them or questioning their work, workers feel invested in and motivated to get to the next level in their career, which translates to increases in employee performance.

Provide Timely and Relevant Feedback

Almost half of employees receive feedback from their managers only a few times a year or less. Not only do employees want clear expectations to be established, they also want to know how these are mapping to their larger career goals. Managers need to provide feedback in a timely manner to promote career development. Feedback can be tricky to deliver, and many don’t like delivering or receiving it. So managers need to normalize the feedback by making sure it is timely and is relevant to the employee and their work.

There are many approaches to delivering feedback, but delivering all feedback all the time isn’t the right answer. Managers need to be thoughtful about evaluating all the feedback they receive about their employees and select those items that are most relevant to the employee and those items that they are ready to hear, all in a timely manner to assist the employee in their career.

So, for many reasons, a quarterly review cadence, vs. an annual review, enables managers to align employees’ individual career goals with the organization’s top priorities, ensuring the employee has a sense of purpose and business goals are met.

This is what motivating your workforce is all about. There is no silver bullet to motivate your workforce, however, HR leaders and managers can make a big impact by having frequent and continuous conversations with employees that focus on career development, communicating clear expectations and providing timely feedback. It’s an ongoing process and won’t happen overnight, but by focusing on motivation, both employees and organization at large are better positioned for success.

SOURCE: Strohfus, D (27 August 2018) "How to Build a Motivated Workforce" (Web Blog Post). Retrieved from http://hrexecutive.com/how-to-build-a-motivated-workforce/


How to evaluate an applicant tracking system

With unemployment rates at a 17-year low, competition for talent is fierce. Applicant tracking systems (ATS) are supposed to fix any inefficiencies in your recruiting process that would otherwise be overlooked. Continue reading for more information.


Unemployment is at 3.9%, a 17-year low. Competition for talent is fierce, especially when you’re trying to hire sellers, mid-level managers, professional staff and skilled labor. When hiring gets this tough, inefficiencies in your recruiting process that could otherwise be ignored will become code red emergencies.

Applicant tracking systems (ATS) are supposed to fix those problems. Some do; many don’t. To tell the difference, HR professionals must do their research. Here are the three most important questions to ask before you invest in an ATS.

1. Will the ATS help or hurt my employment brand? If you’re not an employee at Google or Apple, you’ve probably daydreamed about having your own nap pod in Silicon Valley or being toted around in an automated car. You know the amazing benefits and the free-spirited culture at these organizations. That’s employment brand. Granted, not every organization can hope for Google-level brand awareness, but every company — for better or worse — has a brand of their own, made up of every interaction and detail of the recruiting and hiring process.

See also: LinkedIn voice messaging aims to connect HR with job seekers

You should know that most ATS are made by software engineers, not recruiters. The downside there is that most systems don’t deliver a candidate experience designed to convey an impression of what it would be like to work for your company. If your ATS isn’t helping bolster your employment brand, it’s not working hard enough.

To ensure that candidates can get a feel for your company culture before they even submit an application, you’ll want to find an ATS that can offer fully-branded career pages that match your website. This means having the same colors, fonts, brand messaging and imaging will be crucial to your employment brand. And this is only the beginning. Your ideal ATS should allow you to integrate with major job boards and social media platforms (branding 101: Hang out with the cool kids), allow for one click application submission through mobile devices and keep the application process all in one browser No one wants their employment brand to be “clunky” and “unfriendly”.

2. Will the ATS help speed up the process or will it slow us down? Recruiters and hiring managers either love or hate their ATS. There’s not much middle ground. That’s because they often have to invent ingenious workarounds to use the system, which drives them crazy because it’s time wasted.

When searching for the right ATS system, make sure that it can provide customizable email templates for hiring teams during the recruiting process. It’s important to remember that the system should allow you to send those emails in bulk to potential candidates. You need to be able to set reminders and schedule alerts for users to follow up with candidates or completed tasks. This ensures that you’re saving time and no candidate gets lost in the ether.

Know that dashboards are a great way to get a bird’s eye view on the recruiting process but they’re not the end all. Plenty of HCM providers will have flashy demos and dashboards that seem to work flawlessly, but after implementation you’ll be left with a clunky and glitchy product.

See also: 7 Ways Employers Can Support Older Workers And Job Seekers

To avoid that outcome, ask these questions during your search: Can we see the step-by-step process for reviewing applications, approving candidates, and moving them through interviews? Look beyond the demo screens. You want to see how the system really works, step by step. Can we import and export candidate information? How are potential candidates scored?

3. Does the ATS offer compliance and reporting capabilities? This one’s a biggie. Recruiting and hiring compliance is complex, and so reporting and analytics is a must-have. You need to be able to drive recruiting and hiring decisions in real-time with powerful analytics rather than sloppy excel sheets and poorly filed assessment papers. An ATS will allow you to quickly view the metrics that matter to you, see where your best candidates are coming from, find bottlenecks and catch missed opportunities. With clear and easy to use reporting features that captures all pre-hire compliance data in one place, you’ll never have to worry about fines or tarnishing your reputation.

Of course, there’s plenty more you could ask. Implementation, data security, mobile capabilities and ongoing service and support are all tires worth kicking. But this initial list of questions is a great place to start. Finding and hiring top talent requires lightning-fast action and decisions. When you’re shopping for an ATS, however, it pays to slow down long enough to get the facts.

SOURCE: Neese, Bill (12 September 2018) "How to evaluate an applicant tracking system" (Web Blog Post). Retrieved from https://www.benefitnews.com/opinion/how-to-evaluate-an-applicant-tracking-system


Covered Establishments in All States Must Now Submit OSHA Electronic Reports

HIGHLIGHTS

·      The electronic reporting rule now applies to all affected establishments, including establishments in states with OSHA-approved plans.

·      It does not matter whether the state has ratified the electronic reporting requirements.

·      The OSHA ITA is currently available and accepting reports on OSHA 300A forms with 2017 data.

IMPORTANT DATES

December 31, 2017

Due date for first OSHA electronic reports through ITA (submit 2016 data)

July 1, 2018

Due date for second OSHA electronic reports through ITA (submit 2017 data)

OVERVIEW

On April 30, 2018, the Occupational Safety and Health Administration (OSHA) announced it will require all establishments affected by the electronic reporting rule to submit their 2017 data to OSHA by July 1, 2018.

This announcement clarifies the requirement for establishments in states with an OSHA-approved plan. These establishments must submit electronic reports, regardless of whether the state has ratified or incorporated the electronic reporting rule into its OSHA state plan.

ACTION STEPS

Establishments in all states, including those with an OSHA-approved state plan, should prepare to submit electronic reports by July 1, 2018. Affected establishments can accomplish this by:

  • Becoming familiar with the requirements in the electronic reporting rule; and
  • Transitioning their OSHA records to an electronic format approved by the Injury Tracking Application (ITA)

OSHA Electronic Reporting

OSHA’s electronic reporting rule was issued in 2016. The rule requires establishments to report data from their injury and illness records to OSHA electronically if they:

  • Are already required to create and maintain OSHA injury and illness records and have 250 or more employees;
  • Have between 20 and 249 employees and belong to a high-risk industry; or
  • Receive a specific request from OSHA to create, maintain and submit electronic records, even if they would otherwise be exempt from OSHA recordkeeping requirements.

The electronic reporting rule applies to establishments, not employers. An employer may have several worksites or establishments. In these situations, some establishments may be affected while others are not.

To determine whether an establishment is affected, employers must determine each establishment’s peak employment during the calendar year. During this determination, employers must count every individual that worked at that establishment, regardless of whether he or she worked full-time, part-time, or was a temporary or seasonal worker.

OSHA-approved State Plans

The final rule required OSHA-approved state plans to adopt the electronic rule or “substantially identical” requirements within six months of the final rule’s publication date.

This means that OSHA-approved state plans have the authority to adopt reporting requirements that go above and beyond what is required by the federal rule. For this reason, establishments located in OSHA-approved state plan jurisdictions should consult with their local OSHA offices to make sure they are satisfying all electronic reporting requirements.

The OSHA-approved state plans shown on this map have not yet adopted the requirement to submit injury and illness reports electronically.

As a result, establishments in these states were not required to submit their 2016 data through the reporting website in 2017. However, OSHA has now clarified that they must submit their 2017 data in 2018.

All Employers
California

Maryland

Minnesota

South Carolina

Utah

Washington

Wyoming

Public Employers
Illinois

Maine

New Jersey

New York


Risk Insights - Understanding Total Cost of Risk

Risk exists everywhere in business. One of the biggest mistakes that companies make is assuming that the cost of risk only involves their insurance premiums paid, retained losses and administrative costs. However, the total cost of risk encompasses much more than that.

While a risk management program can be an effective method for controlling risk, the resources used by the program may not be addressing all the risks faced by the business. One way to discover all of the risks facing your business—including the ones that might not be seen, considered or addressed in your risk management program—is to examine the total cost of risk (TCOR).

TCOR is the total cost of the items that businesses are responsible for, such as insurance premiums, retained losses in the form of deductibles and uninsured losses, indirect costs of claims and administrative costs, and other factors that can include the following:

  • Transaction costs
  • Loss of reputation
  • Loss of market share
  • Overtime
  • Additional training
  • Product loss
  • Production decrease
  • Claims reporting and investigation
  • Fines

Over time, an idea of an organization’s TCOR can provide a form of measurement for assessing how its risk-related costs are changing, relative to the overall growth rate of the business.

Why is Knowledge of TCOR Important?

If your business is only focusing on insurance premiums as your way of quantifying risk, you may be missing costs that you have more control over. For example, premiums may be the least controllable costs, as insurance rates are determined by outside forces such as weather-related events, the stock market, interest rates and the insurance marketplace.

Furthermore, the benefit of decreasing premiums is negated if an organization sees an increase in indirect costs of claims and administrative costs. True cost reduction is most impacted by lowering indirect costs, which can cost more than the actual claim itself. TCOR helps identify those costs.


Understanding your TCOR and your ranking helps identify areas where your organization can save money.


How Does TCOR Work?

TCOR is measured per $1,000 of revenue. By measuring TCOR against revenue, you can measure the progress that your safety and risk management programs make in reducing internal costs throughout the years.

Benefits of Knowing Your TCOR

When business owners accurately measure TCOR, they tend to possess the motivation to invest into a more effective risk management effort, which can provide a significant rate of return. Many business owners use TCOR to realize the following benefits:

  • Increased productivity, profitability and efficiency
  • Reduced costs across the entire business, not just reduced insurance premiums

A better idea of any inconsistencies in the organization’s risk management approach

Tips for Utilizing TCOR

Consider the following tips when evaluating TCOR for your organization:

  • Use a basic framework to break down costs into component categories such as insurance premiums, service provider costs, risk transfer costs and safety department expenses.
  • Identify existing costs for each risk category, expressed as a percentage of overall company revenues.
  • Establish targets for each category for future years.
  • Remember that it’s not just about premiums. TCOR also includes self-insured losses, internal administrative fees and outside vendor fees.
  • Work on one area of TCOR at a time. This helps expose weaknesses in other areas of your risk management program and helps identify problem areas that need attention.
  • Consider all components of TCOR proportionally, and examine how they’re operating in conjunction with each other. If losses are low and premiums are high, there may be a need to reduce annual premiums and retain more predictable losses.
  • Be patient. Don’t expect immediate cost savings. Be prepared to invest in risk management tools that can deliver financial benefits over time.

Contact Hierl Insurance Inc. for a TCOR evaluation and resources that can help you lower your TCOR and improve your bottom line.


Managing Robots in the Work Force

Many companies are turning to artificial intelligence (AI) for assistance, as offices are becoming more decentralized. Continue reading to learn how employers can manage robots in the workforce.


As the gig economy increases its influence, offices become more decentralized. Sometimes, whether to save money or finesse consistency, companies turn to artificial intelligence, or AI, for assistance. While robots have been employed to operate machinery or sort objects for years now, they are increasingly working white-collar jobs too.

The New York Times reports, these new algorithms are especially talented at spotting patterns, which helps companies do everything from picking stocks to designing clothing, and even diagnosing cancer. Experts doubt that the workforce will ever become fully automated, however, they are confident that many positions will become at least partially automated soon. For example, a robot might be able to discern increasingly popular t-shirt styles, but only a human can judge the feeling of the fabric between fingers, and the way the drape and color will fit a specific body.

Paradoxically to some, many companies find hope in this trend. They see artificial technologies not as job replacements but as job enhancers, as they often give employees more time to strengthen intuitive instinct and relationship-building techniques.

Plus, through their sophisticated search capabilities, AI can often save HR Departments hours on job fulfillment. A recent article in Human Resource Executive pushed this even further, stating, The impact will not be so much on the number of jobs, but rather on the actual content of jobs themselves… people will collaborate with increasingly intelligent machines to do more complex and higher-value work.What this means precisely is still unfolding, however many are excited about the possibility of reinventing fields, increasing project-based work, and perhaps even redefining the idea of “work” itself.

SOURCE: Olson, B (2 September 2018) "Managing Robots in the Work Force" (Web Blog Post). Retrieved from http://blog.ubabenefits.com/managing-robots-in-the-work-force


Eliminate Electronic Distractions from the Workplace

It is a generally accepted fact that the use of cellphones and other electronic devices while driving present a distraction that greatly increases the chance for an accident. Unfortunately, what too many people fail to take into consideration is how distracting these devices can be in other situations.

In an industry of moving machinery and equipment, manufacturing workers are especially susceptible to workplace injury. They need to be alert at all times, as even the smallest slip-up can cause an accident. Not only can an inattentive worker injure themselves but their carelessness can also endanger others. In this type of work environment it is easy to see the importance of minimizing the potential distractions faced by your employees.

Cellphones

Whether it’s talking or texting, cellphone use takes the employees focus off their task. While handheld use compounds the problem, even using a hands-free device does not allow for full concentration. Studies indicate that the act of talking on the phone is distracting regardless of whether the user is physically holding the device or not. It is the conversation itself that takes an employee’s focus off their work and surroundings.

While some employees may need to use a work cellphone as part of their job, it is best to place restrictions on when and where those phones can be used. Personal cellphones should not be allowed on the manufacturing floor at all, as even the momentary distraction of a call or message alert can potentially lead to an accident. Employees should not have phones on their person during work hours unless they are on a break from their duties and are in a designated break area.

Attentive, focused employees are essential to creating a safe work environment. To reduce the chance for employee injury, it is important to keep the workplace free of distractions, such as cellphones and mp3 players.

Mp3 and Other Music Players

There are a variety of audio cues that alert workers to what is happening around them. Unfortunately, when an employee’s hearing is impaired by music, a shout from a coworker, an odd sound from a malfunctioning machine or the backup alarm on a truck or forklift can be easily missed. Besides limiting the worker’s ability to hear what is going on around them, there is also the potential distraction of operating the device. When adjusting volume or switching songs, not only is the employee’s hearing impaired, but they are also visually engaged with the device. This greatly decreases the worker’s awareness of his or her surroundings.

Potential Hearing Loss

In a manufacturing setting it is not uncommon for there to be high noise levels that require proper ear protection to prevent hearing loss. The use of cellphones, hands-free devices and headphones can interfere with an employee’s proper use of protective equipment. Even though such devices may cover the ear, most are not meant to provide hearing protection.

In fact, in noisy situations, devices that administer sound directly into the ear increase dangerous levels of noise exposure as employees turn up volume levels to drown out background noise. The combination of these noise exposures greatly increases the rate of hearing loss, which in turn increases the chance for occupational hearing loss claims.

Electronics Usage Policy

Attentive, focused employees are essential to creating a safe work environment, which is why it is important to eliminate possible distractions. Prohibiting employee use of personal electronic devices can aid in reducing workplace accidents. To clearly state your company’s rules on when and where usage is restricted, institute an electronics usage policy. Once instituted, train your employees in the policy requirements and make sure restrictions are diligently enforced.


Construction Risk Advisor: September 2018

Industry Overspending $177 Billion Per Year

The average time construction professionals in the U.S. spend on avoidable issues like conflict resolution, rework and looking for project data costs the industry over $177 billion annually, according to a new report.

The participants surveyed for the report said they spend 65 percent of their time on “optimal” activities like communicating with stakeholders and optimizing resources that keep projects on track. They spend the remaining 35 percent of their time on “nonoptimal” tasks like hunting down project information, resolving conflicts and dealing with mistakes that require rework. That amounts to almost two full working days lost per person each week.

Some of the reasons for the nonoptimal costs include poor communication, constrained access to data, incorrect data and the lack of an easy way to share data with stakeholders. Another possible reason is that more than 80 percent of the survey’s respondents said they don’t use mobile devices to collaborate and access project data, despite the fact that mobile devices could help them work more efficiently.

Newsletter Provided by: Hierl's Property & Casualty Experts

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States Say Contractors Must Guarantee Wages

Maryland’s General Contractor Liability for Unpaid Wages Act becomes effective on Oct. 1, making private contractors for prime construction projects in the state financially responsible for unpaid wages of subcontractor employees. And unless the reason for nonpayment is related to a legitimate dispute, general contractors could be held responsible for up to three times the amount owed, plus attorney fees.

California and Oregon also enacted similar laws earlier this year. In California, general contractors are now liable for the unpaid wages of any employee who furnishes labor to or through them, plus unpaid benefits and interest.

Oregon’s wage protection law creates liability for the general contractor only if the worker’s subcontractor employer has not yet been paid in full.

Mitigating The Risk

In order to reduce the risk of general contractors having to pay their subcontractors’ employee wages, some industry experts are recommending that subcontractors provide their own payment bonds.

Opponents of the recent laws argue that it could be difficult for subcontractors on rocky financial ground to meet bond underwriting requirements. And since large projects could require several new bonds per job, overall project costs could increase significantly. Plus, if subcontractors don’t pay up, prime contractors will have to pay twice for the same labor.


The DOL Audit: Understanding the spectrum of risk

Avoiding Department of Labor (DOL) audits are the best way to survive them but audits can happen. Read on to learn more about the spectrum of risks.


Risk is discussed in many contexts in the retirement plan industry. It comes up as a sales tactic; as good counsel from trusted advisors preaching procedural prudence; or, often, in the form of intimidating industry vernacular like fiduciary liability, fidelity bond or the big, bad Department of Labor.

This DOL paranoia is an underlying motivation that drives the risk conversation with distributors and retirement plan sponsors. Naturally, the question of probability comes up: What is the likelihood the DOL will audit my plan? The answer is low, but it can happen.

When evaluating retirement plans in terms of risk, it’s best viewed as a spectrum. Generally, risk falls into three principal areas of concern.

Lawsuit risk: The likelihood of a fiduciary-based lawsuit for most plan sponsors is very low. However, if this does arise, it will be unpleasant and expensive, both financially and in terms of reputation.

Administrative breach: Upon inspection, most plans will have some kind of operational defect. Typically, these are either an administrative, fiduciary or a document-level defect. If left uncorrected, they are potentially disqualifying. The good news is the IRS has corrective methods in place for the most common errors. Generally, these are relatively inexpensive to correct but will cost clients a little time and money, and likely some aggravation.

DOL/IRS audit risk: It’s usually the administrative breach discussed above that leads to the DOL/IRS investigation or audit. These agencies are not interested in disqualifying plans; they are more interested in correcting them and protecting the participants from misdeeds (intentional or not).

When a DOL audit does happen, it tends to occur because someone invited investigation. This could be the result of a disgruntled former employee, a standard IRS audit that somehow spiraled into a full DOL investigation or a variety of other reasons. So, what can employers and their service providers do to avoid an audit?

The IRS and DOL don’t publish an official list of items that could lead to an investigation, but it’s a good idea to look at your plan’s most recent IRS Form 5500 filings to decrease the likelihood of an audit. This is publicly available information that can signal to government agencies that something might be wrong and they should take a closer look. Some of the more common red flags include:

  • Line items that are left blank when the instructions require an answer
  • Inconsistencies in the data disclosed on the Form 5500 schedules
  • A large drop in the number of participants from one year to the next
  • A large dollar amount in the “Other” asset line on the Schedule H
  • Having an insufficient level for the plan’s required Fidelity Bond
  • Consistently late deposits or deferrals and hard-to-value or non-marketable investments (including self-directed brokerage accounts or employer stock) could be counted as red flags as well.

Plan sponsors should make sure that 5500s are completed with the same care and attention to detail used when filling out IRS 1040, and ensure the plan is being governed properly and in compliance with ERISA. This can be a challenge even for the most well-intentioned plan sponsors, given the complexity of the task and the fact that most employers don’t have the expertise in-house.

Calling in a specialist

But you don’t need to navigate these waters on your own. Instead, you might consider the “Prudent Man” rule, which implies that when expertise is required yet absent, a prudent person outsources the needed expertise. There is a wealth of talented retirement plan specialists and advisors available to help guide you through the audit process or, better yet, steer clear of it altogether.

When considering whether to employ one of these specialists, you will need to evaluate their experience, expertise and training, as well as if they provide services to help the plan sponsor keep the DOL (and the IRS) out of their offices. Some commonly available services include:

  • 5500 reviews to help plan sponsors avoid potential audit triggers
  • Coaching services to help plan sponsors identify and eliminate some of those difficult-to-value assets like employer stock or self-directed brokerage accounts
  • Service provider evaluations to help plan sponsors identify those who will work as a plan fiduciary and put the appropriate guardrails in place on an automated basis

In conclusion, the best way to survive a potential DOL investigation or IRS audit is to avoid one altogether. Committing to best practices for running the plan may mean outsourcing a great deal of the work to specialist retirement plan providers and advisors. Plan sponsors would be wise to consider working with service providers who operate as plan fiduciaries themselves. In this way, you’re more likely to avoid problems and achieve better plan results, leading to better outcomes for everyone.

SOURCE: Grantz, J (7 June 2018) "The DOL Audit: Understanding the spectrum of risk" (Web Blog Post). Retrieved from https://www.benefitnews.com/opinion/dol-audit-understanding-the-spectrum-of-risk?feed=00000152-18a5-d58e-ad5a-99fd31fe0000


Cyber Risks & Liabilities: September/October 2018

In this Issue

Who’s to Blame if a Security Breach Affects Your Organization?

A recent survey found that 70 percent of consumers expect businesses to take responsibility in the event of a data breach. But who within your organization should take the heat?

Acronyms All Businesses Need to Know

As cyber security evolves, it’s easy to become overwhelmed with all the terms and acronyms used. This article lists some of the most common acronyms in cyber security.

Increase in Attacks Against 911 Call Centers Highlight Need for New System

There have been 184 cyber attacks on public safety agencies and local governments since 2016, and 42 of those attacks targeted 911 call centers

Who’s to Blame if a Security Breach Affects Your Organization?

If a security breach affects your organization, your main focus may be to solve the problem as quickly as you can, not point the finger in blame. But your customers want to know why it happened and who was responsible, even if the breach occurred because of their own lax security measures (e.g., sharing passwords or opening suspicious emails). In fact, a recent survey found that 70 percent of consumers expect businesses to take responsibility in the event of a data breach. But who within your organization should take the heat?

The CEO

If an organization doesn’t budget enough for security solutions, the fault will likely be placed on whoever makes the financial decisions, stemming from the CEO. In fact, 29 percent of IT decision-makers who took part in a recent VMware survey thought that the CEO should be held responsible in the event of a large-scale data breach.

The CISO

If a data breach occurs even after your company adequately budgets for cyber security solutions, 21 percent of IT security professionals surveyed would still hold your CISO accountable in the event of a data breach.

IT Personnel

According to a 2014 report, 95 percent of cyber security incidents are due to human error. That’s why personnel who manage IT security on a regular basis are easy targets for blame.

Other Employees

While accountability may start with the CEO and board of directors, everyone in your organization should take responsibility for cyber security. Even if you have the most modern cyber security technology, its return on investment will be nonexistent without full employee participation

Increase in Attacks Against 911 Call Centers Highlight Need for New System

There have been 184 cyber attacks on public safety agencies and local governments since 2016, and 42 of those attacks targeted 911 call centers, according to cyber security firm SecuLore Solutions.

Over half of the attacks involved ransomware, in which hackers used a virus to control the emergency systems and hold them hostage for payment. Most of the remaining attacks were denial-of-service attacks, which involved a flood of fake calls that prevented call centers from addressing valid emergency calls.

Due to the vulnerabilities in the current 911 system and the fact that it doesn’t address the ways people communicate in the modern world—such as through texts—the emergency response industry is encouraging state and local governments to adopt a system called Next Generation 911.

The Next Generation 911 system will have advanced security and be able to seamlessly move incoming calls to other centers when needed. The new system also gives callers the choice of calling from a phone line or sending data through approved telecommunications carriers and internet service providers.

Next Generation 911 is expensive, however, and governments have been slow to adopt it. Plus, its increased connectivity also opens new potential means of attack, according to industry experts. Sophisticated defense systems run by in-house cyber security teams will be vital as the emergency response industry adopts any new technology.

Acronyms All Businesses Need to Know

Newsletter Provided by: Hierl's Property & Casualty Experts

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Seeing beyond size in vision care networks

There are many other factors to consider when it comes to deciding which vision care network best fits the needs of your employees. Read this blog post to learn more.


Most people believe that “size matters” in regards to provider networks, but in the world of vision care there are other important factors to consider when deciding which network matches the needs of employees. Network members usually see their vision provider for routine services just once per year. When an employer changes vision administrators, employee in-network utilization is more than 90% regardless of the new network size. Why? Employees are not concerned about changing providers to access in-network benefits. Plus, the new vision provider network will always provide access to multiple providers wherever the employee lives and works.

But what about the quality of the vision care network? To properly assess this measurement of competing networks, employers and benefit advisers need to ask several different questions.

Determine the network’s quality
The quality of the network is vital. Start asking these questions: How are vision care providers credentialed? Do they follow the National Committee for Quality Assurance (NCQA) guidelines developed to improve healthcare quality? Are there provider audit programs provided on an ongoing basis? Is the vision care provider re-credentialed and how often? How frequently are reviews conducted of the Office of Inspector General and Medicare and Medicaid disbarment lists?

Establish the network’s effectiveness
Once you know you have a quality network, now you must ask how effective the network is. How diverse is the network? Are there ample ophthalmologists, optometrists and optical retailers we can access? Are some private practitioners? You want to make sure that a solid provider mix is available to give employees options when choosing a vision care provider.

It’s critical to know what languages are spoken within the employee population as well as the providers who care for them. If you have a large population who speak a certain language you want to make sure your network gives them access to people who can truly understand them and with whom they feel comfortable.

Finally, look at the hours of operations. With schedules being busier now than ever before, people need flexibility when it comes to visiting hours. Do they offer evening hours? Weekend hours? This is particularly important for single parents who work during the week and need the flexibility to visit an eye care professional with his or her child after work.

Having a diverse, quality vision care provider network with convenient access helps keep employees happy, healthy and in-network.

Other factors to consider
One of the other factors to be cognizant of is network ownership. Today, many managed vision care companies are involved in not only providing coverage for vision care but also in delivering it. This means the vision benefits company you’re considering may own optical laboratories, frame companies or retail locations, which can pose conflicts of interest between you, your employees and the managed vision care company. Their need to produce profits can lead to undo pressure on your employees to purchase expensive and potentially unnecessary lens types, materials and options. Coupled with direct to consumer advertising and the expansion of brands, eyeglasses have become even more expensive.

This leads to another factor for consideration. Does the potential vision benefit administrator provide meaningful information to help your employees make informed decisions about what they really need, when it comes to the myriad of options available for frames, lenses and lens options?

Network matching
Start by remembering two things when matching networks. First, if you’ve changed vision carriers in the past, you selected a network that was not identical to your previous one. Vision networks never match each other. Some have higher proportions of independent providers and lower percentages of large retailer chains. Second, the infrequency with which the vision benefit is available to be used mitigates the impact of changing providers. People don’t have the same attachment to their eye care professional as they do with their physician.

Beyond quality and effectiveness is the important factor of access. The vision industry has grown to a point where there are often many more providers than would ever be necessary to provide convenient access for your membership. The reality is that two networks may be equally sized in an area and yet there may be little overlap, making the selection of the best network with the lowest overall cost a better strategic direction than simply selecting the one with the highest provider match.

The vision industry has long demonstrated that employees are willing to select new providers, especially when costs are more competitive, and services are more convenient.

SOURCE: Moroff, C (22 August 2018) "Seeing beyond size in vision care networks" (Web Blog Post). Retrieved from https://www.employeebenefitadviser.com/opinion/seeing-beyond-size-in-vision-care-networks?feed=00000152-a2fb-d118-ab57-b3ff6e310000