Financial stress hurts emotional, physical well-being of workers

Did you know that your emotional and physical well-being can take a hit when you are under financial stress?  Here is an interesting article from Employee Benefits Advisors about the correlation between financial stress and mental and physical health by Amanda Eisenberg.

Americans aren’t able to save for their financial goals, and that stress is affecting their emotional and physical well-being.

A new study by Guardian Life Insurance found that financial outlook is the most significant driver of working Americans’ overall well-being, constituting 40% of the insurance company’s Workforce Well-Being Index, and money is cited as the No. 1 source of stress for a majority of workers.

“Even among people working full-time with benefits, many still do not have access to adequate insurance coverage or retirement plans,” says Dave Mahder, vice president and chief marketing officer of Guardian’s Group and Worksite Markets business. “And few take advantage of the health and wellness programs available through their employers, which often contain a much broader menu of resources than workers realize.”

Millennials are one of the subsets of employees who do participate in benefits that can help alleviate financial stress, the survey found.

“Millennials want marketing to them,” says Gene Lanzoni, assistant vice president of thought leadership for Guardian Life. “It’s not enough these days to say, “This is someone like you,” to do with your benefit selection. That’s what the challenge is for millennials. It’s not enough of an engaging process for them.”

Half of millennials surveyed in Guardian Life’s “Fourth Annual Guardian Workplace Benefits Study” said they don’t have disability insurance, while a third have yet to sign up for a retirement plan.

They are not the only group of employees struggling to purchase voluntary benefits like disability and life insurance; single working parents are also feeling the heat.

One in three single working parents does not have a retirement plan, compared to 20% of the 1,439 workers surveyed. Similarly, one in four workers doesn’t have life insurance, and one in three workers doesn’t have disability insurance, according to the survey.

“Many of those working parents are struggling to balance work and personal life, and they may not be able to afford some of the protection products,” says Lanzoni. “Some of that discretionary income might not go toward paying a voluntary disability plan.”

To offset expenses, Americans are increasingly turning to debt, whether through loans or credit cards, to temporarily relieve their financial burdens.

Four in 10 Americans have car loans, 32% of workers are carrying a mortgage, 17% have student loans and 12% have home improvement debt, according to the study. Overall, 75% of Americans are carrying debt.

Non-mortgage debt — particularly auto and education loans — contributes to lower financial wellness; those carrying the most total debt, including mortgages and rent, report considerably lower overall well-being, according to Guardian Life’s report.

Employers can also help alleviate the burden by providing education to employees, among other services, says Lanzoni.

The survey found that employer-sponsored voluntary insurance products and college tuition or loan repayment programs help with financial wellness, as well as employee assistance programs that can identify financial, emotional and physical issues that lead to stress.

See the original article Here.

Source:

Eisenberg A. (2017 March 13). Financial stress hurts emotional, physical well-being of workers [Web blog post]. Retrieved from address https://www.employeebenefitadviser.com/news/financial-stress-hurts-emotional-physical-well-being-of-workers?feed=00000152-1387-d1cc-a5fa-7fffaf8f0000


Digital approach to millennials can boost retirement savings participation

Do you need help boosting involvement in your retirement program? Take a look at this great article from Benefits Pro about how digital media can be the perfect vehicle for increase enrollment in your retirement program by Marlene Satter.

Retirement plan providers need a new approach—literally—when it comes to engaging millennials: going digital.

According to a blog post from Corporate Insight, millennials use, or seek to use, technology and mobile platforms to manage as many aspects of their lives as possible. But when it comes to retirement plans, many can’t.

While millennials are not only much more likely to value mobile access to their 401(k)s than their parents are, plan providers haven’t been as enthusiastic.

A Corporate Insight survey found that 57 percent of millennials consider the ability to manage their retirement plan account via a mobile app “very important” or “extremely important,” versus just 26 percent of baby boomers, but only 10 of the 19 leading retirement plan providers Corporate Insight tracks offer any kind of transaction capabilities via their iPhone apps.q

And that, considering millennials’ preferences, is a failure.

Although it’s considerably better than it was only four years ago, when only two out of 17 firms provided such service, the post says, “the industry has yet to reach the standard set by other financial industry verticals, like banking and brokerage, where mobile transaction functionality is the new normal.”

It’s true that many retirement plan providers have recently introduced mobile apps, but those apps have only limited capabilities compared with the functionalities millennials are looking for.

Then there’s the little matter of advice and education. Thanks to the Great Recession, millennials have a low risk tolerance and tend to stick to very conservative investments.

In addition, they “highly value advice and are not receiving enough of it,” the post says. With millennials the most likely of all generations to seek some degree of professional advice, at 89 percent compared with 78 percent of boomers, only 58 percent say they have been offered this assistance.

Of course, even among those offered advice, just 59 percent have actually taken advantage of it—possibly because they perceive it as expensive and don’t realize that the plan sponsor may be footing the bill instead of the employee.

Better communicating the menu of options available to employees could correct misperceptions, as well as alert employees unaware of the option to its availability.

Millennials are also more open to managed accounts, and those who have them are likely to say they’re satisfied or very satisfied with them.

Fintech firms offering low-cost robo options could boost the participation of young people in their retirement accounts, and as a means of customization they could be key to improving the results of defined contribution retirement accounts in helping employees prepare for retirement.

See the original article Here.

Source:

Satter M. (2017 March 24). Digital approach to millennials can boost retirement savings participation [Web blog post]. Retrieved from address http://www.benefitspro.com/2017/03/24/digital-approach-to-millennials-can-boost-retireme?ref=hp-news


Compliance Recap March 2017

Make sure to stay up-to-date with the most recent changes to the ACA, thanks to our partners at United Benefit Advisors (UBA).

In March, the employee benefits world watched as the House Speaker unveiled a proposal to replace parts of the Patient Protection and Affordable Care Act (ACA) with the American Health Care Act (AHCA). The AHCA bill was withdrawn from consideration by the full House on March 24 because it appeared that there would not be enough votes to pass the AHCA.

On March 13, 2017, the U.S. Senate approved Seema Verma as the new administrator of the Centers for Medicare & Medicaid Services (CMS), which spends more than a $1 trillion annually on health care programs.

The IRS updated its Q&As to address whether family members of an employee who declines employer-sponsored coverage would be eligible for a premium tax credit for Marketplace coverage. The IRS updated its Publication 969 regarding health savings accounts and other tax-favored health plans. The IRS released its Information Letter regarding the treatment of cafeteria plan forfeitures. The Department of Labor (DOL) released an advisory opinion on whether an association's administrative services program was an ERISA employee welfare benefit plan or a multiple employer welfare arrangement (MEWA).

UBA Updates

UBA released one new resource in March: Important News Regarding the Employer-Tax Exclusion for Health Insurance

UBA updated existing guidance:

IRS Updates Guidance on Premium Tax Credit Eligibility When Employer-Sponsored Health Plan Coverage is Offered to an Employee's Spouse and Children

The IRS updated its Questions and Answers on the Premium Tax Credit. Specifically, Q&A 15 addresses a situation in which an employer offers minimum value, affordable coverage to an employee, the employee's spouse, and the employee's children. The plan only allows the spouse and dependent to enroll if the employee enrolls. The employee declines to enroll.

The IRS determined that all three family members are not eligible for a premium tax credit for Marketplace coverage because they could have enrolled in the employer-sponsored coverage through the employee's coverage and the coverage would have been minimum value and affordable.

IRS Updates Its Publication 969

The Internal Revenue Service (IRS) updated its Publication 969 Health Savings Accounts and Other Tax-Favored Health Plans for use in preparing 2016 tax returns. The publication describes HSAs, MSAs, FSAs, and HRAs, including eligibility requirements, contribution limits, and distribution information.

IRS Releases Information Letter

IRS released Information Letter Number 2016-0077, in which it explains how an employer may dispose of a flexible benefit plan's unused funds when an employer ceases business operations and terminates a plan and when a participant forfeits funds to an ongoing plan.

The plan documents will determine how an employer may dispose of unused funds when a cafeteria plan terminates. Unused funds will not revert to the U.S. Treasury.

The IRS explained that the Internal Revenue Code (IRC) Section 125 rules apply to funds forfeited by a participant in an ongoing plan. Per IRC Section 125, the participants' forfeited funds may be:

  • Retained by the employer maintaining the plan,
  • Used to defray plan expenses, or
  • Returned to current participants and allocated on a reasonable and uniform basis (but not based on claims experience).

Finally, the IRS explained that when an employee terminates employment, IRC Section 125 prohibits the plan from reimbursing health care expenses incurred after the employee terminates employment and no longer participates in the plan.

DOL Issues Advisory Opinion

On January 13, 2017, the Department of Labor (DOL) issued Advisory Opinion 2017-01A. The DOL determined that an association's administrative services program for its members' employee benefits plan is not an ERISA employee welfare benefit plan and not a multiple employer welfare arrangement (MEWA).

As background, the association is comprised of large employers that sponsor self-insured benefit plans through administrative services only (ASO) agreements with insurance companies. The association has a member-owned and member-funded cooperative that analyzes health care spending, utilization, and outcomes; however, the association does not and will not provide insurance services to its members; determine benefit levels, administer plans, benefits, or claims; facilitate payment of ASO fees to insurers; or file or process claims.

The DOL determined that the program is not an ERISA employee welfare benefit plan because it has no employee participants and it does not offer or provide benefits to employees or their dependents.

The DOL determined that the program is not a MEWA because it is not an arrangement established or maintained to provide welfare benefits to employees of two or more employers. Further, the DOL determined that the program does not operate as a MEWA because no component of the program underwrites or guarantees welfare benefits, provides welfare benefits through group insurance contracts covering more than one employer, pools welfare benefit risk among participating employers, or provides similar insurance or risk spreading functions.

Question of the Month

Q. What obligations does an employer have when it receives returned Form 1095-Bs marked as undeliverable by the U.S. postal service?

A. Under IRS guidance, the employer fulfills its responsibility to furnish the statement to an individual if it mails the statement to the recipient's last known permanent address (unless the recipient affirmatively consented to receive the statement in electronic format).

Practically speaking, the employer should keep the mailing which shows that the employer sent the statement to the recipient's last known permanent address and that the statement was returned undeliverable. That way, the employer has proof that it mailed the statement to the recipient's last known permanent address.

To download the full recap click Here.

 


Employee financial health connects to physical health

Did you know that there is a direct correlation between financial and physical health? This article from Benefits Pro is a great read explaining the link between an employee's financial and physical health by Caroline Marwitz.

LAS VEGAS -- Are poor physical health and poor financial health connected? The benefits industry is making the link, if you consider how many deals between health-related benefits companies and retirement providers have occurred lately.

Obviously, the poor, at least in America, have a more fragile state of health than the more affluent. And as we age, the potential for unplanned health events to hurt us financially increases -- and that's important for retirement advisors and plan sponsors to remember. But what about your typical employees who are neither poor nor elderly?

A study in the journal Psychological Science looked at worker attitudes and actions to find out whether poor physical health and poor financial health might be linked, and how.

The researchers studied employees who were given an employer-sponsored health exam and were told they needed to change certain behaviors to improve their health. Which employees made the changes and who blew them off?

The researchers accounted for external factors such as different levels of income and physical health, and differences in demographics. Yet the results were still startling:

“Employees who saved for the future by contributing to a 401(k) showed improvements in their abnormal blood-test results and health behaviors approximately 27% more often than noncontributors did,” the researchers concluded in Healthy, Wealthy, and Wise: Retirement Planning Predicts Employee Health Improvements.

The employees who made the behavior changes to better their physical health were also the ones who were taking action to better their financial health.

Employee attitudes about the future and how much control they have over it affect whether they take care of their physical health and their financial health. That sense of control, or conversely, that feeling of no control, and thus, no investment in long-term results, is one reason why some employees might not participate in retirement plans, and, maybe, wellness and well-being programs.

What if, along with the retirement health-care cost calculators many retirement plan providers offer, there was a fatalism calculator too? That way you could see right away each person’s sense of control or feelings of inevitability about their future and help them more efficiently.

Because if someone is more fatalistic, telling them about their 401(k) match or pension options isn’t going to make them enroll in a retirement plan. Scaring them with statistics about the high costs of health care in retirement isn’t going to do the trick either. Instead, consider the following points for such employees:

  • They can be helped to see that the future is a lot more unpredictable (and complex) than they realize, both negatively and positively.
  • They can be helped to realize that even the smallest actions they undertake can have a big impact in the long term.
  • They can be helped to understand that seemingly unobtainable goals can be broken down into steps and tackled bit by bit.

Look behind employee behavior for the unexamined biases and long-held assumptions that are causing it. If they can see that it’s not who they are that determines their future but what they do, it's a start.

See the original article Here.

Source:

Marwitz C. (2017 March 19). Employee financial health connects to physical health [Web blog post]. Retrieved from address http://www.benefitspro.com/2017/03/19/employee-financial-health-connects-to-physical-hea?ref=hp-top-stories


3 things managers can’t say after FMLA requests

Do you know which question you can ask any employee requesting FMLA leave?  Look at this great article from HR Morning about what employers can and cannot say to an employee on FMLA leave Christian Schappel

You know when employees request FMLA leave, those conversations have to stick to the facts about what the workers need and why. The problem is, a lot of managers don’t know that — and here’s proof some of their stray comments can cost you dearly in court. 

Three employers are currently fighting expensive FMLA interference lawsuits because their managers didn’t stick to the facts when subordinates requested leave.

Don’t say it!

The real kick in the pants: Two of the lawsuits were filed by employees who’d received all of the FMLA leave they requested — and the courts said the interference claims were still valid. How’s that even possible? Keep reading to learn about the latest litigation trend in the FMLA world.

Here’s what happened in each case (don’t worry, we’ve cut to the chase in all of them) — beginning with the words/phrases managers must avoid when a worker requests leave:

No. 1: ‘We expect you to be here’

James Hefti, a tool designer, was in hot water with his company, Brunk Industries, a metal stamping company.

Reason: Let’s just say he called a lot of people at work “my b____.”

After he ignored multiple warnings from management to stop using obscenities at work, the company planned to fire him. But it didn’t pull the trigger immediately.

Then, just prior to his termination, Hefti requested FMLA leave to care for his son, who was suffering from various mental health problems.

His manager, upon hearing of Hefti’s request, told him Brunk paid for his insurance and thus expected him to be at work.

When Hefti was fired a few days later, he sued for FMLA interference.

The company tried to get the suit thrown out, claiming his conduct and ignorance of repeated warnings gave it grounds to terminate him. But it didn’t win.

The court said the manager’s interactions with Hefti did raise the question of whether he was fired for requesting FMLA leave, so the judge sent the case to trial.

Cite: Hefti v. Brunk Industries

No. 2: ‘It’s inconsiderate’

Lisa Kimes, a public safety officer for the University of Scranton’s Department of Public Safety, requested FMLA leave to care for her son, who had diabetes.

Kimes was granted all the time off she requested. But in a meeting with her supervisor she was told that since the department was short staffed it was “inconsiderate” of her to take time off.

When her relationship with the department soured, she sued claiming FMLA interference.

The department tried to get her suit tossed before it went to trial. It had a seemingly reasonable argument: She got all of the leave she requested, so it couldn’t have interfered with her FMLA rights.

But Kimes argued that her supervisor’s comments prevented her from requesting more FMLA leave – thus the interference lawsuit.

The court sided with Kimes. It said she had a strong argument, so the judge sent her case to trial as well.

Suit: Kimes v. University of Scranton

No. 3: ‘I’m mad’

Judy Gordon was an officer with U.S. Capitol Police when she requested intermittent FMLA leave for periods of incapacitating depression following her husband’s suicide.

But before Gordon used any FMLA leave, a captain in the police department told her that an upper-level manager had said he was “mad” about FMLA requests in general, and he’d vowed to “find a problem” with Gordon’s request.

Then later, when she actually went to take leave, her manager became irate, denied her request and demanded a doctor’s note. He later relented and granted the request.

In fact, she was granted all the leave she requested.

Still, she filed an FMLA interference suit. And, again, the employer fought to get it thrown out before a trial on the grounds that Gordon had no claim because all of her leave requests were granted.

But this case was sent to trial, too. The judge said her superiors’ conduct could have a “reasonable tendency” to interfere with her FMLA rights by deterring her from exercising them — i.e., the comments made to her could’ve persuaded her not to request additional leave time to which she was entitled.

Suit: Gordon v. United States Capitol Police

Just the facts, please

Based on a thorough read-through of the court documents, each of these employers appeared to have a pretty good chance of winning summary judgment and getting the lawsuits thrown out before an expensive trial — that is, if it weren’t for the managers’ stray comments in each.

These cases have created two important teaching points for HR:

  1. Courts are allowing FMLA interference claims to be made if it appears an employee may have been coaxed into not requesting leave he or she was entitled to, and
  2. You never know when a stray remark will come back to bite you.

The best way to stay safe: Re-emphasize that managers must stick to the facts when employees request FMLA leave, as well as keep their opinions and other observations to themselves.

See the original article Here.

Source:

Schappel C. (2017 March 17). 3 things managers can't say after FMLA requests [Web blog post]. Retrieved from address http://www.hrmorning.com/3-things-you-cant-say-after-fmla-requests/


Is industry coming around to robo-advisor concept?

Have you ever thought about the future of employee benefits advisors? Take a look at this interesting article from Benefits Pro about the growth of robotic employee benefits advisors by Caroline Marwitz

LAS VEGAS -- Some advisors see robo-advisors as a competing force.

At the NAPA 401(k) Summit, you might expect some hostility to the concept. After all, the market for algorithm-based, non-human decision-making robo-advisors is expected to grow.

Business Insider’s research service, BI Intelligence, forecasts that by 2020, robo-advisors will manage $8 trillion in assets.

But the questions for two executives at two robo-advisor firms during a technology panel demonstrated more curiosity than hostility. Betterment for Business's Cynthia Loh and blooom’s (yes, three Os) Chris Costello fielded them and got in some marketing in the process.

The questions ranged from whether advisors can get data and metrics about results (yes), how good is the security and encryption of participant information (as good as a bank’s), whether rebalancing is participant-driven (no), whether there was a process to update employee risk tolerance and other information over time, as it changes (yes), to whether these robo-advisors partner with advisors to offer compensation (Betterment: yes, we have a separate arm of the business for that; blooom: ten dollars per participant doesn’t make a partnership conducive, though advisors can offer this service to differentiate themselves to plan sponsors).

The common wisdom is that robo-advisors, at least in the retirement industry, are aimed at people with fewer assets.

However, in the wider investment industry, the BI Intelligence research report noted: “Consumers across all asset classes are receptive to robo-advisors — including the wealthy. 49% of this group would consider investing some of their assets using a robo-advisor.”

For blooom, its market is not intended to be the wealthy, CEO and cofounder, Chris Costello, said, but rather “the people who don’t understand stuff.”

“All the way up the food chain, people are messing up their 401k plans,” Costello said. “We are targeting a segment of market most advisors aren’t targeting, most are well below 250,000 dollars.”

The stereotypical user of a robo-advisor is, of course, a millennial. But now, said Betterment’ for Business GM Cynthia Loh, “Everyone expects technology.” Even the clients have changed, she said. Where in the past it might be a tech company, within the last year companies of other kinds have come on board -- medical, legal, and financial services firms.

Taking aim at the traditional, minimalist way many employers offer information on retirement plans, Costello noted that there are always going to be employees who like to study their options and do their homework. “But that is not most Americans. Most Americans need this to be done for them. When I had wealthy clients, I didn’t tell them to go home and study up. We did the work for them. This brings the services that wealthy people have been getting for decades.”

Still, Loh added, Betterment embraces both the technology and the human side.  “We recognize there’s always going to be a place for human advice.”

Because ultimately it comes back to the human side, not the technology side. Of course, the technology behind the algorithms is important. But something as warm and fuzzy as the participant questionnaire is also crucial.

In fact, recent guidance on robo-advisors from the Securities and Exchange Commission concerns itself with a robo-advisor’s questionnaire.  Which makes sense, as it’s the information the algorithms use to make their decisions and the basis of their advice. Garbage in, garbage out. And the ability, which both firms offer, to consult with a human advisor, whether it might be by phone or by chat, is also important, at least to what we know about what plan participants want.

And the Department of Labor’s fiduciary rule has made many in the retirement industry feel that knowing as much as possible about a participant or client is key to successfully helping them as well as being in compliance.

See the original article Here.

Source:

Marwitz Caroline (2017 March 19). Is industry coming around to robo-advisor concept [Web blog post]. Retrieved from address http://www.benefitspro.com/2017/03/19/is-industry-coming-around-to-robo-advisor-concept?ref=hp-top-stories


What Employers Need to Know About Communication

What's the key communication platform for employee benefits communication?

"It is not a one size fits all approach, each group needs to take a look at their population and decide what is best for them."  -Tonya Bahr, Hierl Employee Benefit Advisor.

  • Emails are efficient for targeting professional staff, especially companies that have companywide email addresses.
  • Letters or texts are the best way to communicate with field or labor employees.
  • A popular way to communicate is by meeting, whether it be a webinar or seminar. Often, companies will mandate that their employees attend informational sessions discussing benefits offered. This allows our clients to efficiently communicate a consistent message out to employees to help understand their benefits.

 

Ding ding ding, round 1! Paper VS Digital communications

Okay, not really because it's not a competition!

"An online approach works really well for employees but it is also very important for the spouses to be engaged as well. We typically follow up the meetings with a deliverable the employee can bring home to their spouse. This not only allows the spouse to learn more about the benefits available to them, but it also reinforces what was covered in the meeting for the employee." -Tonya Bahr

tonya bahr 

To download the full article click Here.


The benefits of financial wellness counseling

Are your employees being properly educated on the benefits on their financial well-being? If not take a look at this article from Benefits Pro about the value of educating your employees in financial wellness by Jack Craver

Money Management International, a nonprofit credit counseling organization, is touting the results of a recent survey it conducted as evidence that employers can significantly reduce stress among their employees by offering them financial counseling resources.

MMI announced recently 86 percent of the 150 employees it provided financial counseling to at an Oregon-based nonprofit health agency say they have less stress related to money as a result of the counseling.

In addition, most of the employees at Samaritan Health Services say the counseling led to them achieving certain financial goals, such as reducing debt (60 percent), setting aside more money for retirement (38 percent), boosting their credit score (30 percent) or buying a home (8 percent).

"At MMI, we know that financial coaching, counseling, and education work, but seeing the incredible, positive impact this program has made on the financial outlook of these clients is simply amazing,” says Julie Griffith, Mapping Your Future account manager, in a statement accompanying the study’s release.

Other research has shown employers are increasingly viewing financial counseling as a key component of wellness initiatives due to the significant psychological and emotional toll money-related anxiety takes on employees.

In addition to causing depression, sleep deprivation and all sorts of health problems that reduce an employee’s productivity, financial stress often distracts employees from their work. A survey last year showed that 37 percent of U.S. employees report spending time on the job thinking about or dealing with personal finances.

The awakening to the importance of financial wellness coincides with a number of studies which shed light on young Americans’ lack of savings. One study found a solid majority of Americans have less than $500 in savings. Another found that the U.S. personal savings rate was just 5.7 percent, roughly half of what it was 50 years ago.

See the original article Here.

Source:

Craver J. (2017 March 08). The benefits of financial wellness counseling [Web blog post]. Retrieved from address http://www.benefitspro.com/2017/03/08/the-benefits-of-financial-wellness-counseling


Caregiving Benefits Can Sharpen Your Competitive Edge

Interesting article from the Society of Human Resources about the benefits of leveraging caregiving benefits in your employee benefits program by Hank Jackson

Whether caring for an aging parent, welcoming a newborn child or handling family medical situations, life events can create some of the most stressful and demanding challenges in our personal and work lives. For those without employer-provided paid leave, the burden is even heavier. People often need extended periods of time off to cover responsibilities at home, but many are forced to rely on the federal floor of unpaid leave guaranteed by the Family and Medical Leave Act.

High costs are cited as the biggest barrier to paid leave, but now, more than ever, companies risk losing great talent to rivals with more robust policies—here and abroad. In addition, employers struggle with a growing patchwork of state and local leave laws that hinder innovation and add compliance costs. This is why SHRM is advocating for public policies that would provide relief to employers while guaranteeing paid leave and expanded flexibility options for full-time and part-time employees. The issue of paid leave is a hot one—featured during the presidential campaign and poised to be a focus of congressional consideration in 2017.

Last year, more than two dozen large U.S. employers—including American Express, Deloitte, Ernst and Young, Campbell’s, First Data and Etsy—announced they would significantly strengthen paid family leave benefits. Their approaches vary, ranging from extending the time employees can take paid leave to broadening categories of eligible individuals and covered situations. But in all instances, a powerful business case was behind the decision. They believe it is a winning strategy and are promoting it widely to stakeholders and shareholders.

A carefully analyzed and applied family leave benefit can be a differentiator in today’s hyper-competitive talent marketplace. Even medium-sized and small enterprises can offer budget- and family-friendly policies, such as flexible schedules. The important thing is to develop a workplace where an employee’s work-life needs are valued and supported, balanced with the right benefits, rewards and adaptability across an employee’s life cycle.

Paid parental leave and other work-flexible programs are not only about competing or compliance. They are about doing the right thing for the organization and the employee. As HR professionals, it’s up to us to help our organizations grow a culture where both employees and employers win. This is part of the compact to create the 21st Century workplace employees of all ages want—innovative, fair and competitive with other businesses.

See the original article Here.

Source:

Jackson H. (2017 March 09). Caregiving benefits can sharpen your competitive edge [Web blog post]. Retrieved from address https://blog.shrm.org/blog/caregiving-benefits-can-sharpen-your-competitive-edge


Why employers should rethink their benefits strategies

Has your employee benefits program grown old and stale? Take a look at the great article from Employee Benefits Advisors about the benefits of upgrading your employee benefits to match your employees needs by Chris Bruce

Historically, employee benefits have been viewed as a routine piece of the HR process. However, the mentality of employees today has shifted, especially among the growing population of millennial employees. Today’s workforce expects more from their employers than the traditional healthcare and retirement options, in terms of both specific benefit offerings and communications about those offerings.

For companies, it’s critical they address the evolving needs of their workforce. With unemployment rates plunging to their lowest levels since before the financial crisis, the search for talent is heating up, and organizations need to work harder than ever to retain top talent in a competitive job market. To do this, I see three steps that organizations need to take when rethinking their benefits strategy and engaging with employees: embrace a proactive rather than reactive benefits strategy, think digital when it comes to employee communications and consider the next generation of employee benefits as a way to differentiate from the competition.

1. Reconsider your benefits evaluation process

The benefits process at most companies is reactive — executives and HR only look to evaluate current offerings when insurance contracts expire or a problem emerges. When the evaluation does happen, the two factors that often concern employers the most are product and price. Employers often gravitate toward well-known insurers that offer the schemes that appear familiar. However, this can often lead companies to choose providers who fall short on innovation and overall customer experience for employees.

This approach needs to be flipped on its head. Companies should be proactive in determining which benefit schemes best meet the needs of their workforce. The first step is going straight to the source: talk to employees. Employers can’t know what benefits would be most appealing to their employee base unless they ask. By turning the evaluation process to employees first, companies can better tailor new benefits to meet the needs of their workers, and also identify existing benefits that might be outdated or irrelevant, therefore saving resources on wasted offerings.

Data and analytics also are playing an increasing role across the HR function, and benefits is no exception. By leveraging technology solutions that allow HR to track benefits usage and engagement, teams can better determine what is resonating with employees and where benefits can be cut back or where they should be ramped up.

2. Put down the brochure and think digital engagement

Employee education is another area of benefits that can often perplex companies. According to a recent survey from Aflac, half of employees only spend 30 minutes or less making benefit selections during the open enrollment period each year. This means employers have a short window of time to educate employees and make sure they are armed with the right information to feel confident in their benefits selection.

To do this effectively, HR needs to move past flat communication like brochures, handouts and lengthy employee packets and look for ways to meet employees where they live — online. By testing out innovations that create a rich experience, while still being simple and intuitive, employers can grab the attention of their workforce and make sure key information is communicated. For example, exploring opportunities to create cross-device experiences for employees so they can interact on-the-go, including augmented reality applications or digital interactive magazines. Additionally, for large corporations, hosting a virtual benefits fair can provide a forum for employees to ask questions in a dynamic setting.

3. Embrace the next-generation of benefits

As organizations become more savvy and nimble, personalization will have a huge impact in encouraging employee engagement and driving satisfaction among today’s increasingly diverse workforce. We have already started to see some companies embrace this new approach to benefits, adding out-of-the-box items to normal offerings — from debt consolidation services and wearable health tracking technology to genome testing and wedding concierge services.

The fact is, the days of “status-quo” benefits are gone, and employees today want benefit options that match their current life circumstances. To best engage employees, organizations need to be proactive in evaluating benefits regularly and using analytics to track usage, identify opportunities to implement digital communication elements and look for ways to introduce new benefits to meet the needs of their employee base. By following these steps, organizations can gain a competitive edge when it comes to attracting and retaining top talent.

See the original article Here.

Source:

Bruce C. (2017 March 10). Why employers should rethink their benefits strategies [Web blog post]. Retrieved from address http://www.employeebenefitadviser.com/opinion/3-steps-employers-can-take-to-rethink-benefits-strategy?feed=00000152-1377-d1cc-a5fa-7fff0c920000