Summer Blog Series (Part 2):

Paid Time Off - Eliminating Administrative Burdens Through PTO Automation

As we mentioned in our first post in this four part series on Paid Time Off, statistically speaking, PTO is the most highly utilized employee benefit. Makes sense, right? For this very same reason, management of PTO can also be a real burden for an already swamped HR department, most especially if PTO is still being managed in a manual, non-automated fashion.

The reason for this is simple: employees don’t do a good job of keeping track of the time they’ve taken. This seems to be true even when the accrued amount is posted on each paystub ;) The problem compounds when there are multiple "paid time off" accounts such as vacation days, sick days, bereavement days, etc.

Five Key Factors to Measuring Wellness ROI

As we discussed in our last post, those tasked with the job of overseeing company wellness programs often find it difficult to quantify the success of those programs in a definable way. The problems facing HR departments when tasked with establishing the ROI on wellness are many, from program structures that don’t provide enough trackable data, to the difficulties of measuring intangible successes in terms of money, to the simple fact of limited time, resources, and manpower. These issues are often compounded by unrealistic expectations and a desire for quick results.

Why Is Wellness ROI So Difficult To Measure? 

When making policy decisions around wellness initiatives, companies often find it difficult to quantify the success of these programs in a definable way. There are many reasons wellness ROI is difficult to measure. Because of the sheer number of variables to be considered, there is no simple, standard formula into which HR departments can plug a set of numbers to get an answer to the ROI question. Any calculations in this area require considerable critical thought.

Pitfalls of Program Design and Company Culture

One of the problems facing HR departments is the inaccessibility of several baseline elements that must be tracked accurately in order to calculate their programs' ROI. Poor original structuring of wellness initiatives compounds the problem. If the wellness program is not structured in such a way that there is accountability for employees involving concrete, measurable tracking of progress, it will be virtually impossible to calculate ROI with any degree of success.

Effective Wellness Programs Focus on Screenings and Immunizatons Over Behavior Modification 

Many workplace wellness programs focus, rather unwisely, on altering unhealthy employee lifestyles. Examples of such programs include weight-loss contests and smoking cessation campaigns, just to name a few.

While these efforts are certainly admirable, anyone who has tried to lose weight or quit smoking will tell you that changing ingrained behaviors and habits is extremely difficult – even when there are significant incentives involved. To us, it seems that the focus on lifestyle and behavioral changes as a starting point misses the mark.

Rather, we recommend that employers almost always start with age appropriate screenings and immunizations. This approach is a simple and effective way to care for employees and prevent and/or treat developing conditions. And because most of the recommended screenings and immunizations are covered at 100% by most health plans, there’s less pushback from a participation standpoint.

Summer Blog Series (Part 1):

Paid Time Off - Why PTO Is Such a Critical Benefit

Ask any seasoned HR individual about the most frequently asked question of them, especially around this time of year, and most will tell you that it’s some version of an inquiry regarding vacation, holidays, sick days and leave policies; in other words, paid time off (PTO).

So as the July 4th holiday approaches, this seems like an appropriate time for us to introduce a four part series on PTO, the most highly utilized of all employee benefits.

In this, the first post in the series, we’ll focus on why PTO is such a critical benefit to both employee and employer. The second part of our series will focus on the latest in PTO automation and why it no longer has to be such an administrative burden. The third part of our series will focus on frequently asked questions about PTO policies and procedures, and in the fourth and final part in our series, we’ll discuss some recent and notable trends in PTO and well as some new and novel approaches to the concept of time off.

SCOTUS Gay Marriage Decision: How Will It Impact Employee Benefits?  

How will the recent Supreme Court ruling legalizing same-sex marriage affect employee benefits? The short answer is that it will streamline the administration of benefits packages, but may complicate things in the near term as employers adapt to the new rules.

The Supreme Court, in a 5-4 ruling, has effectively made same-sex marriage the law of the land in all 50 states. While political and legal wrangling remains where this new right may conflict with religious belief, same-sex marrige have effectively become, in the eyes of the law, the same as what may consider "traditional marriage". Marriage Equality Now the Law of the Land

The decision is the culmination of a long struggle by gays and lesbians to gain the same marriage rights that heterosexual couples already enjoy. The legal battles that have consumed the courts and the political fights that have roiled state legislatures have effectively come to an end: marriage equality is the law of the land.

SCOTUS Decision Settles Subsidies. Now Let's Tackle Runaway Healthcare Costs. 

Well that was a close one! If anyone missed it, the Supreme Court of the United States last Friday held in favor of the defendants and found subsidies included in the Affordable Care Act (ACA) applied to all states and not just the ones that set-up state-run Exchanges.Did anyone really expect this 30,000+/- page body of work to fall, based upon the interpretation of just a few words?

Regardless of your feelings about this latest ruling, or the law in general, most folks agree that it is time to move on. The last four years have been action packed and filled with non-stop controversy regarding this law. In the end, another four years of confusion and uncertainty won't help the citizens of this country.

While there are many aspects of the law that make absolutely no sense and are terribly problematic, there are also many aspects that are great: guaranteed issue, no medical questions for enrollees, 100% coverage for preventative services and streamlined enrollment are all good things that have come from the law. Mandates, reporting and penalties are areas that will require years for individuals and employers to fully understand and fully comply at it is time to move on. The last four years have been action-packed and filled with non-stop controversy regarding this law. In the end, another four years of confusion and uncertainty won't help the citizens of this country. 

Key Takeaways From MetLife's Employee Benefit Trends Study

The recently published MetLife Benefit Trends Study contains some very interesting and perhaps surprising statistics regarding the annual benefits enrollment process.

We encourage you to check it out for yourself (it’s a very quick read). Here are a few of our key take-aways:

• Smaller companies (under 500 employees) have a lower percentage of employees engaged in the annual benefits enrollment process than larger ones.

Manage Staffing Costs Thru Employee Engagement

Despite a strong economic recovery, the Affordable Care Act is pressuring employers to find an optimal balance between total employee compensation and annual company profits. 

One of the best ways for companies to manage staffing costs is by improving employee retention, reducing turn-over and focusing on strategies to retain existing, skilled employees. Here’s why this is so important and what companies can do about it.

The Cost of Hiring

It’s easy to forget than the true cost of hiring a new employee is far more than just salary and employee benefits, which usually total in the 1.25 to 1.4 times base salary range (meaning that a salary plus benefits package for a $50,000/year employee could equal $62,500 to $70,000).

The ACA Cadillac Tax 101: What You Need To Know

As one of the most controversial features of the Affordable Care Act, the so-called Cadillac Tax is currently scheduled for implementation beginning in 2018. This deadline looms large in the minds of many business owners, as the Cadillac Tax, as the law is written, will have a significant impact on businesses of all sizes.

The 40 percent tax targets plans that provide workers with the most generous level of health benefits. These plans are typically employer-paid plans, with low deductibles and little cost-sharing for employees. The excise tax will be applied in 2018 to coverage for health plans exceeding $10,200 for individual coverage and $27,500 for self and spouse or self and family coverage. Any dollar amount beyond these specified caps will be considered excess health spending, and will be penalized at 40 percent, payable by the insurer (e.g. employer).