by jeffp | Jun 7, 2017 | Employee Benefits
Recognizing an employee’s talent and rewarding them is a simple way to increase motivation. American Express recently conducted a survey on 300 SME (small-medium enterprises). They found that 89% of workers have received some form of incentive from their company. While most employees have received some form of incentive, about 33% percent of employee participants feel that it makes them work harder. This is interesting to note considering that 37% of employers who don’t currently use rewards believe that starting a reward system would increase their employees level of production.
While rewarding employees can serve many functions, about 34% of employers feel that adding a incentive program will result in higher retention rates. This seems to makes sense, since 46% of employees feel “really valued” after receiving an incentive. Since 44% percent of employees feel rewards are a way of employers noticing their dedication, it may be worth the investment of companies to think about adding such a system
Companies choose various way in which to reward their team members. 38% of companies choose to only provide an incentive to their high performing employees. While 23% provide rewards to all their employees. It seems that a lot of companies have a harder time investing money into their talent unless it is high profitable for them to do so. But, its interesting to consider that 21% of employers choose to reward their long term employees.
Brendan Walsh, Executive Vice President, recently said “Small to medium-sized businesses have put strategies in place to grow product and service in innovations”. Companies are looking for ways to increase their level of production through various avenues. It’s difficult to judge a reward system in “hard” numbers. Feedback from employees can be a valuable resource to calculate the cost benefit of a reward system.
One often overlooked aspect of incentives is how they are delivered. Looking an employee straight in the eye and saying “thank you” is critical. Simply adding money to a pay check without some form of recognition defeats the purpose.
Of course, incentives are only one part of attracting and keeping employees. We are always searching for new information on employee benefits. If you have any questions about your current employee benefit program, please feel free to contact us. We can answer any questions and help with the expansion of any employee benefit package.
by jeffp | Mar 31, 2017 | Employee Benefits
Both left and right have suggested concepts for paid family leave. This is an outcome of the fact that most Americans support some form of federally mandated family-leave law.
It may be surprising for business owners and managers to hear that the U.S. is the only developed country that doesn’t offer guaranteed time off for parents and other caregivers.
But there is a shift taking place. New York passed a generous state-backed family program in 2016. It allows for 12 weeks of paid time off for new parents. It also allows for time off for anyone who needs to care for a family member with a serious medical condition.
Minnesota, Rhode Island, & California all have established family-leave policies.
Big companies are joining the fray. From Cambell’s to American Express they are introducing or expanding their paid-leave programs. These include offering more time off and allowing for more ways to qualify for coverage.
While the trend is increasing, universal mandatory family leave is a way’s off. Congress is not unified on what should be included in a program or whether one should exist at all…
Yet younger workers are particularly interested in family leave options. Employers are taking notice. Employers are realizing this is a significant way to compete and offer unique benefits.
One challenge facing businesses is that benefit plans are often built around older concepts of family care. These assume that women will take on most of the child care duties early on. Yet fathers have become much more involved.
One concern is whether the company’s culture is fully supportive of the paid leave options they offer. Some paid leave laws don’t include job protection. Employees feel pressured to return to work earlier than they otherwise would prefer because their career depends on it.
One progressive program is offered by Earnst& Young which has more than 230,000 employees world-wide. It is expanding parental leave to cover 16 weeks for new mothers & fathers. This includes time for birth, of course. But it also includes surrogacy, adoption, or legal guardianship as well. Their program is robust and considered to be a trendsetter. The point? To be the most attractive potential employer.
Small companies are not as disadvantaged as you might imagine. Often times a small business can be more flexible with their workforce vs. larger companies. Small companies can also be more responsive.
Small Business Options and Challenges
Small businesses tend to be lean operations. Having a team member leave is challenging. Offering paid time off for 16 weeks at a time may feel impossible.
Yet the key is in finding flexible options that can be appealing to workers while being affordable for the employer. This could include flex time as well as working from home.
Why is it important to be flexible? Because the median cost of replacing a worker is roughly 21% of their annual salary. With that in mind, finding flexible leave options becomes more affordable.
If the employer works with employees to plan, workloads can often be divided. Likewise projects can be scheduled around an individual’s absence. By carefully evaluating options, a small business can often find a path that can absorb the impact of leave.
If you are thinking about a flexible leave program, the best first action is to talk with your benefits adviser who can help you explore your options.
by jeffp | Mar 10, 2017 | Employee Benefits
Have you thought about a workplace wellness program? They can be extremely helpful in creating a happy & healthy workforce. They can also result in decreasing sick days while creating significant gains in productivity.
One important aspect of a good wellness program is helping employees learn how to make healthy and balanced eating decisions. Helping team members make sensible food choices can have a big influence on the effectiveness of a wellness program.
One important thing is to help your employees understand that any such program is voluntary. In fact, it is critical to listen to employees closely to help determine if a healthy eating program would be a good fit for your office. Surveys and conversations can help uncover team concerns. They can also help to uncover “evangelists” who’ll keep co-workers excited about the program.
Some general guidelines include:
- Know your employees – find out what has and hasn’t worked for them in the past.
- Work with your team to develop a plan the entire team can be excited about.
- Determine how long the plan will go and what support will be included.
- Pay employees a little extra to help organize the program and keep it going.
As for topics, there are many you can leverage to build an excellent program…
- Pros & cons of going vegan
- How to eat healthy when on business trips
- Understanding the basics of healthy eating
- Stretching healthy dinners into healthy lunches the next day
- Understanding the impact of things like salt, sugar, fats, and cholesterol
- How stress management impacts eating habits
The list is nearly endless!
You should also ask your insurance professional if integrating a healthy eating / wellness program could have a positive effect on your group health insurance rates…
And for more thoughts on creating a program, here’s a great resource out of Canada.
by jeffp | Jan 27, 2017 | Employee Benefits
To remain competitive in a tightening employment market, companies are increasing the amount of PTO (paid time off) given to workers. This is especially true for parental leave. Another major adjustment becoming popular is a change how paid leave is structured. We’ll start with that first.
Companies are realizing they have to innovate to be competitive employers. They are finding that paid leave is more attractive when compared to other pay and benefit options.
One program that’s become popular is PTO banks. These incorporate holiday, sick days, and earned time off into one united account. A survey of companies performed by WorldatWork in 2002 showed that 28% of respondents were leveraging PTO banks. As of 2015, the number had shot up to 43%.
More traditional PTO approaches separate vacation, sick, and paid holidays into separate accounting. They are still more widespread but they are in decline.
One advantage for the PTO bank approach is that plans are easier to administrate. Another advantage is that they help reduce absenteeism. And 69% of companies with PTO banks report that they are critical in attracting new employees.
One negative aspect of PTO banks is that they have to be allocated as a liability on the company’s financial reports.
It’s best to consider a PTO bank in situations where the company has a culture that encourages employees to feel like they have more agency and control over their circumstances.
But the big benefit that has everyone talking lately is Paid Parental Leave. More than 18% of companies surveyed have indicated they are offering more family friendly leave options that surpass the mandates in the FMLA. (Family Medical Leave Act.)
For companies that offer advanced paid leave options, 16% report that they offer 6 weeks. Another 16% report they offer 12 weeks.
Here’s one example. As of 2017, American Express is leading the way by offering a full 20 weeks of paid parental leave for mothers and fathers. They are also offering 6 to 8 weeks of extra paid time off for women who give birth and require medical leave.
Employers can set requirements so that employees must meet requirements before they can utilize this benefit. The most generous programs require tenure of 12 months or more before employees can use the benefit.
So should you implement a robust Parental Leave Program?
- Can your business afford it?
- Will employees support it?
- Will all managers from the top down fully embrace the policy?
And as with PTO Banks, the real question is how will this help your company beat out your competitors for talent. Will offering extended parental leave give you an edge?
And even if you can’t afford to offer PTO Banks or 4 months of paid parental leave, look for creative alternatives! Think about ways you can help new parents with their work / life balance. For example, more flexible hours or telecommuting options.
And if you want to review all of your benefit options, be sure to check with us for ideas. We’ll help you find creative ways to show your employees that you care.
by jeffp | Jan 1, 2017 | Employee Benefits
Life expectancy is increasing, Social Security benefits are shrinking, and a recent study shows that 54 percent of Americans have too little saved to ensure an adequate income stream after they collect their last paycheck. Given these facts, you’d expect more of your workers’ New Year’s resolutions to focus on retirement—but that’s not the case.
According to the New Year’s Resolutions Survey from Allianz Life Insurance Company, 44 percent of respondents plan to put their focus on health and wellness this year. Only 29 percent were pledging to improve their financial security in 2016, followed by 13 percent who were going to make changes to their career or employment and 9 percent who were determined to enhance their education.
If you’re not currently offering benefits to help your employees meet this highly popular goal, you may want to do so as soon as possible. According to the Society for Human Resource Management’s (SHRM) Strategic Benefits Survey, 69 percent of companies offer some type of wellness program, resource or service to their workers. Among them, 40 percent increased their investment in employee wellness initiatives in 2015.
Their employees responded favorably; 52 percent reported that employee participation in wellness initiatives had increased over the prior year, in part due to the incentives or rewards they offered including:
- Reduced healthcare premiums (45 percent)
- Gift cards (37 percent)
- Company gift items (25 percent)
- Recognition (20 percent)
- Time off from work (7 percent)
- Bonus or cash (7 percent)
- Contributions to HSA/HRA (3 percent)
Assisting your employees with their health-related resolutions (such as to exercise more, lose weight or lower their blood pressure) can help you attract better job candidates and retain your best workers. Twenty-four percent of employee participants in the SHRM survey said workplace wellness programs were a “very important” contributor to job satisfaction.
But that’s not all; wellness initiatives are also good for your bottom line. Seventy-seven percent of employers said the initiatives had been “somewhat” or “very effective” in decreasing their company’s cost of healthcare. Eighty-two percent said the initiatives were “very effective” or “somewhat” effective in improving the physical health of their company’s workers—an important factor in productivity.
If you need a few suggestions to integrate into your own workplace wellness initiative, consider the following—some of which won’t cost you a dime:
- Walking meetings
- Onsite fitness classes
- Onsite preventative screenings
- Onsite fitness and weight loss tracking
- Departmental and interdepartmental weight loss competitions
- Walking or “Steps per Day” challenges
- Reimbursement for gym membership
- Stress management assistance
- Goal-setting assistance
- Support groups
- Healthy vending machine alternatives
- Mandatory vacation
- Group participation in community running and cycling events
If you’re ready to get started with a workplace wellness program, we can help. Contact us for further suggestions, currently available benefits and more.
by jeffp | Dec 6, 2016 | Employee Benefits
While the current political landscape suggests changes may be looming for the Affordable Care Act, it is important to ensure you are aware of the law in its current state and what penalty risks you may face.
The most complicated component of the ACA for most companies is the Shared Responsibility requirement. It requires people to secure a minimum level of health care protection and they also require companies with more than 50 full-time employees to offer their workers budget friendly health insurance options.
Companies who presently fail to offer coverage considered acceptable under the ACA can face fines of $2,000 per full-time worker.
Companies with high labor costs and minimal profit margins are typically the most exposed to potential ACA penalties. This includes businesses involved in logistics, hospitality, and retail spaces. (Due to rule changes, many formerly part-time employees were reclassified as full-time in 2014.)
Because these industries tend to offer lower wages, an employer’s group health plan may be considered “unaffordable” which would then trigger ACA penalties for the employer should the workers receive additional subsidies to buy protection via the public health care exchange.
If you meet the trigger size and are required to offer minimum, affordable coverage… but at least one worker purchases through a public exchange instead… you can be penalized.
Likewise, if you offer minimum required coverage to all workers but it isn’t economical, making it so the worker can’t afford the cost of protection… you can be penalized if only one staff member purchases through a public exchange.
The key to managing the impact of ACA penalties is to change your plan designs and premium choices to maximize worker participation in the plans.
Naturally understanding the in’s & outs of these complexities is reason enough to rely on the help of someone with health plan benefits experience to ensure you’re crafting the right plan for the right outcome.
And as the law evolves, having someone familiar with the changing landscape will help you maximize the benefits you offer to your employees while helping you mitigate any exposer you might have to fees & penalties.
If you are concerned about changes to the law, your risk exposure, or simply making certain you are offering the right plan for your team, be sure to reach out to your benefits specialist right away.
