With the arrival of 2024, Human Resources professionals are contemplating the future. Everyone is looking into that crystal ball to try and understand what the most pressing issues in talent management will be.
HR Exchange Network is no different, so we turned to the experts on Featured to ask what they think will be the biggest trend of the coming year. Discover their predictions:
THE EMERGENCE OF THE “HIDDEN WORKFORCE”
“With so many employers still facing talent shortages, 2024 will be the year of the ‘hidden workforce.’ This refers to the 27 million Americans who are often rejected or underutilized because of unfair hiring practices, like caregivers, retirees, or neurodivergent professionals.
In 2024, you can expect to see more employees taking on technology and recruitment strategies that help them dig into this unexplored segment. Technology makes it easier to tap into the hidden workforce and simultaneously customize workflows so that diverse hires are set up with the right tools for success.”-Robert Kaskel, Chief People Officer, Checkr
PRIORITIZING DATA PRIVACY OF EMPLOYEES
“I believe that in 2024, a significant HR trend will be the heightened prioritization of employee data privacy. With the shift toward remote work and digital operations, the importance of securing employee data escalates. We expect HR departments to introduce advanced data-protection measures and privacy-centric policies.
For instance, companies may adopt end-to-end encryption for internal communications and invest in training staff to recognize and mitigate data risks. This rising priority on data privacy not only safeguards against data breaches but also signals to employees that their personal information is respected and protected, further reinforcing their commitment to the company.”-Nuria Requena, Talent Acquisition Manager, Spacelift
INTEGRATING AI IN HR
“In 2024, I anticipate a significant advancement in integrating artificial intelligence within HR technology. Many HR professionals will learn to leverage AI to their advantage. Notably, in recruitment, AI has shown efficiency through streamlined candidate screening, a reduction in unconscious bias, substantial time and cost savings, and an elevated candidate experience marked by prompt and personalized responses.
An HR trend I hope to increase is remote and hybrid work models. Many roles do not necessitate a physical office presence, and the benefits of remote work are manifold. I encourage all employers to critically evaluate their organizational structure to identify opportunities for implementing and optimizing remote and hybrid work arrangements.”-Antwan Robertson, HR professional
ADAPTING TO NEW WORKFORCE DEMOGRAPHICS
“Adapting HR systems and practices to changing workforce demographics will be one of the leading HR trends going into 2024 and beyond.
As workplace technology evolves, the workforce demographics are growing as well, and many HR teams find themselves having to support and meet the needs of their workforce. Choosing to focus on one or the other is no longer a realistic solution, and HR needs to adapt its practices to serve both its aging and young workforce.”-Max Wesman, Chief Operating Officer, GoodHire
REBRANDING HR AS “PEOPLE & CULTURE”
“In the next year, I foresee more and more HR departments rebranding to “People & Culture.” This signals a systemic shift in how the function operates and views its role within an organization. It is the next step in the function’s evolution, which originated as “Personnel,” to the current state, “Human Resources.”
Today, more and more are rebranding to “People & Culture” to show the value and priority of the two most important aspects of their organization—the people and the culture. When both are thriving, the business will equally thrive. In contrast, if either is suffering, it will be evident in business outcomes. “People & Culture” teams play a critical role in shifting HR from a paper-first, transactional department to a people-first, transformational pillar of the business.”-Lindsey Garito, Director of People and Culture
MORE COMPREHENSIVE DEI INITIATIVES
“One trend we foresee is a growing recognition of the need to encompass various aspects of diversity, including race, gender, sexual orientation, and disability, within DEI initiatives. Organizations are expected to adopt more comprehensive and inclusive approaches. Additionally, there will be a continued focus on promoting mental health, emphasizing the creation of a supportive ethos, and offering resources. As remote work becomes prevalent, organizations will grapple with DEI challenges related to a globally diverse workforce, addressing cultural differences and remote inclusion.
Continuous education and training on DEI topics will therefore persist as a key trend, with a focus on cultivating an inclusive culture and minimizing bias. Also, there may be a greater push for transparency in reporting and accountability to showcase progress in DEI efforts.
To navigate these trends successfully, organizations will need to engage with DEI experts and adapt their strategies to foster a more inclusive workplace.”-Arundhati Chafekar, Principal Consultant, Vertical Lead – Learning and Strengths, NamanHR
FORWARD-LOOKING HIRING STRATEGIES
“In 2024, I expect one significant trend in HR to be the intensifying competition for top talent. This development follows a period where companies have become more adept at retaining their existing talent pools post-pandemic. As a result, attracting the best candidates for new positions has become more challenging.
In response to this trend, HR and talent acquisition professionals should adopt a more forward-looking approach to their hiring plans. They should start the recruitment process early and maintain a consistent effort to build and nurture a talent pipeline. Fostering relationships with target talent ahead of time can also give companies a competitive edge in securing the right candidates when the need arises.
This proactive approach is vital in a job market where availability is often characterized by the urgency of yesterday’s needs.”-Katie Tu, Managing Director, Kepler Search
DEI AND CONSTRUCTIVE ARGUMENTS
“With more and more attention being brought to DEI issues globally, I foresee more conversations and demand for solutions that consider cultural contexts. Similarly, I see an integration of conflict-management principles into DEI and HR work, where disagreements and conflict are not avoided or seen as destructive, but to collaborate and problem-solve.
This also reflects the shift of DEI work from purely the role of a select, passionate few into the hands of every working professional to prioritize the cultivation of diverse, equitable, and inclusive environments in the workplace and beyond.”-Xin Yi Yap, Global Diversity, Equity, and Inclusion Product Manager, Aperian
Health insurance provides important financial protection in case you have a serious accident or sickness. People without health coverage are exposed to these costs. This can sometimes lead people without coverage into deep debt or even into bankruptcy.
It’s easy to underestimate how much medical care can cost:
Fixing a broken leg can cost up to $7,500
The average cost of a 3-day hospital stay is around $30,000
Comprehensive cancer care can cost hundreds of thousands of dollars
Having health coverage can help protect you from high, unexpected costs like these.
When you have coverage, your plan protects you from high medical expenses 2 ways:
Reduced costs after you meet your deductible Once your spending for covered services reaches your plan’s deductible, the plan covers part of your medical expenses.
Example: If your plan has a $1,000 deductible, you pay the first $1,000 in covered services. After that, your plan pays between 60% and 90% of your covered expenses, depending of what kind of plan you have. You pay between 10% and 40% of the costs as coinsurance or copayments.
Out-of-pocket maximum This is the total amount you’ll have to pay no matter how much covered care you get in a plan year.
Example: If your plan has a $3,000 out-of-pocket maximum, once you pay $3,000 in deductibles, coinsurance, and copayments the plan pays for any covered care for the rest of the year. This provides important peace of mind and protection from very high medical costs.
Pay less even before you meet your deductible
Even before you meet your deductible, you may save hundreds of dollars in medical costs.
How you save money before you meet your deductible
Insurance companies negotiate discounts with health care providers, and as a plan member you’ll pay that discounted rate. People without insurance pay, on average, twice as much for care. This means when you use a network provider you pay less for the same services than someone who doesn’t have coverage – even before you meet your deductible.
Sometimes these savings are small. If you’re insured and use a network provider, you may pay $25 for a flu shot instead of the $40 someone without coverage pays.
In other cases the savings can be big. If use a network provider, you may pay $85 for an office visit instead of the $150 someone without coverage pays. Savings can be even higher for more expensive services.
So even if you don’t reach your deductible during the year, you can save a lot of money on your covered medical services just by being enrolled in an insurance plan.
The Affordable Care Act (ACA) Implementation FAQ Part 63, issued by the U.S. Departments of Labor, Health and Human Services, and the Treasury focuses on the Public Health Service Act, which mandates that non-grandfathered group health plans and health insurance issuers provide culturally and linguistically appropriate summaries of benefits and coverage (SBC) and claims and appeals notices.
The regulations stipulate accommodations for notices in counties where more than 10 percent of the population is literate only in a specific non-English language, as determined by American Community Survey (ACS) data. Plans and issuers must offer oral language services, provide notices in the relevant non-English language upon request, and include a statement in English notices indicating how to access language services (referred to as taglines).
Non-grandfathered group health plans and issuers must adhere to the guidance for plan or policy years beginning on or after January 1, 2025. This guidance ensures that the provision of SBC and claims and appeals notices aligns with cultural and linguistic competence standards.
Employer Considerations
Employers should be prepared to point out to applicable employees the tagline to access language services found in English language SBCs and notices.
REDUCED INSULIN PRICES FOR SOME
UnitedHealth’s pharmacy benefit manager unit, Optum Rx, announced the inclusion of eight insulin products in its reimbursement list, limiting out-of-pocket expenses to $35 or less for enrollees. These products, including short- and rapid-acting insulin from Eli Lilly, Novo Nordisk, and Sanofi will be moved to tier one, the preferred status with the lowest prices, effective January 1, 2024. The move is part of an effort by these major insulin manufacturers, who collectively control 90 percent of the U.S. insulin market, to reduce list prices by 70 to 78 percent this year or in 2024. The Biden administration and lawmakers have been urging insulin makers and pharmacy benefit managers to address the high prices of this crucial medication.
Employer Considerations
Employers should check their insurers’ Rx formulary as more carriers may follow suit to lower insulin prices. Self-funded plans may consider making this change to remain competitive with fully funded plans.
BLUECROSS BLUESHIELD MOVES INTO DIRECT CARE DELIVERY
In 2023, various BlueCross BlueShield (BCBS) plans underwent reorganization, engaging in corporate restructuring, mergers and acquisitions, or establishing subsidiaries focused on healthcare delivery to enhance competitiveness with larger insurers.
BCBS plans have been expanding their presence in healthcare delivery by opening medical clinics exclusively serving their members. In Washington, Premera Blue Cross collaborated with Kinwell Medical Group in 2022 to establish primary care clinics for its members. BCBS Arizona took a similar approach in 2023, launching Prosano Health Solutions, a new primary care subsidiary, with plans to address specific geographic areas in Arizona to improve access to care.
BCBS North Carolina recently announced its intention to acquire 55 North Carolina locations of FastMed, a national chain offering preventive, telehealth, occupational health, primary care, and urgent care services. This move is aimed at enhancing healthcare services, particularly in rural areas with limited access to resources.
Employer ConsiderationsEmployers covered by BCBS should ask their insurance broker whether the carrier provides a direct care option near them.
CALIFORNIA TAKES A STEP TOWARD SINGLE-PAYER SYSTEM
Governor Gavin Newsom signed Senate Bill 770, a significant step toward universal healthcare in California. The legislation directs the state’s Health and Human Services Agency to collaborate with the federal government to create a unified health financing system for all Californians. This move could pave the way for a single-payer system, covering every resident and funded by state and federal resources, including Medicaid and Medicare funds.
Senate Bill 770 aims to establish a uniform standard of healthcare accessible to all individuals, irrespective of factors such as age, income status, employment status, immigration status, and other variables. As California undergoes modifications in its Medi-Cal system, Michael Lighty, president of Healthy California Now, emphasizes that certain persisting issues can only be effectively addressed through comprehensive reforms across the entire healthcare system.
The law requires California’s health secretary to provide recommendations on crafting a federal waiver by June 1, 2024, potentially allowing the state to access federal financing for a universal healthcare system.
While the legislation faced opposition, including criticism from both the left and the right, it suggests an incremental approach to healthcare reform in California. The move aligns with Governor Newsom’s 2018 campaign promise of supporting a single-payer system. Despite the diverse opinions, the signing of SB 770 underscores California’s commitment to exploring avenues for achieving universal healthcare.
On November 9, 2023, Chicago replaced its existing paid sick leave ordinance with the Chicago Paid Leave and Paid Sick and Safe Leave ordinance, effective December 31, 2023. The new ordinance modifies the accrual system, allowing employees to earn one hour of paid sick leave plus one hour of paid leave for every 35 hours worked, with a yearly maximum of 40 hours of each. Employees can carry over 16 hours of accrued paid leave and 80 hours of accrued sick leave to the next benefit year. Alternatively, employers can front-load 40 hours of each at the start of each benefit year.
Unlike the prior ordinance, the new law mandates that accrued, unused leave be paid to employees upon termination or when no longer covered by the ordinance, subject to a phased approach based on employer size. Any excess leave beyond annual carryover limits is forfeited. New employees become eligible for paid sick leave after 30 days and paid leave after 90 days of employment. Paid leave can be used for any purpose, and employers cannot compel employees to disclose the reason.
Employer Considerations
Employers must comply with various notice and posting requirements, including providing written notice of the paid-time-off policy at the start of employment and before any changes. A 14-day notice of policy changes affecting final compensation must be given, and information about leave accrual and usage must be provided with each wage payment. Employers with Chicago-based employees should carefully review and adjust their sick leave and paid leave policies to align with the new ordinance, considering its differences from the previous paid sick leave ordinance and the upcoming statewide Paid Leave for All Workers Act.
QUESTION OF THE MONTH
Q: Can former employees who are on COBRA and paying monthly premiums to a TPA for COBRA deduct those premium amounts on their taxes? For example, if a person is on COBRA for three months in 2023, can they deduct COBRA premium payments from taxable income on their 2023 federal tax return?
A: Yes, COBRA premiums can be deducted on an individual’s federal income taxes provided they itemize their taxes and the person’s medical expenses (including COBRA premiums) exceed 7.5% of their adjusted gross income.
Answers to the Question of the Week are provided by Kutak Rock LLP. Kutak Rock provides general compliance guidance through the UBA Compliance Help Desk, which does not constitute legal advice or create an attorney-client relationship. Please consult your legal advisor for specific legal advice.
This information is general in nature and provided for educational purposes only. It is not intended to provide legal advice. You should not act on this information without consulting legal counsel or other knowledgeable advisors.
‘Tis the season for family, festivity, and food—lots of food. The holidays dish up a triple whammy of wintry weather, irresistible foods, and stress, which can cause even the strongest-willed person to reach for another festive goodie.
While the notion of enjoying “healthy holidays” has a nice ring to it, reaching that goal can be very challenging. Between the endless social gatherings and the to-do lists that seem longer than Santa’s list of names, balancing the season’s obligations often means that our diets take a backseat until the New Year.
If you’re trying to maintain a healthy lifestyle this holiday season, you may be wondering what foods you should prepare and how to stay on track with your goals.
Here are six tips for savoring a healthier holiday season:
Portions Matter – Eat slowly and mindfully and opt for smaller portions. Also, avoid going back for seconds; your body needs time to feel full so give yourself 20 minutes before you reach for more.
Fit in Favorites – No food is on the naughty list. Deprivation leads to backlash – it’s better to have a plan and do it on purpose. In advance, plan for the indulgences that matter most to you so you can be sure to savor a small serving of Aunt Carol’s pie!
Make Movement Merry – Be active after a big meal; not only does activity help you burn off some calories but you may also feel more energized. Exercise is the secret to holding the (waist)line when holidays indulgences call. Choose fun activities like ice skating or sledding with friends and family or take a walk with family after a holiday meal.
Include Some Healthy Options – A platter of raw veggies or fruit with a low-fat dip can be a colorful and healthier alternative to a tray of sliced cheese, deli meats and crackers. Or replace the cheese dip with a bowl of cold large shrimp with cocktail sauce.
Try a New Tradition – You may not be the only person at the gathering trying to maintain healthy eating goals. Why not try a healthier recipe that may become a new tradition?
Get Your Zzz’s – Going out more and staying out later means cutting back on your sleep. Sleep loss can make it harder to manage your blood sugar, and when you’re sleep deprived, you’ll tend to eat more and prefer high-fat, high-sugar food. Aim for 7 to 8 hours per night to guard against mindless eating.
Set an example for your children. By incorporating some of these ideas, you can create healthy traditions for your kids. As these traditions are passed down from one generation to the next, your family will learn that it’s possible to make positive lifestyle choices while still enjoying the holiday season.
Remember, a healthy holiday makeover doesn’t require drastic changes to have a significant impact. Modifying a few choices and behaviors can lead to health benefits that can last a lifetime of happy, healthy holidays.
If you have a health plan through a job, you can use a Flexible Spending Account (FSA) to pay for health care costs, like deductibles, copayments, coinsurance, and some drugs. They can lower your taxes.
How Flexible Spending Accounts work
A Flexible Spending Account (FSA, also called a “flexible spending arrangement”) is a special account you put money into that you use to pay for certain out-of-pocket health care costs.
You don’t pay taxes on this money. This means you’ll save an amount equal to the taxes you would have paid on the money you set aside.
Employers may make contributions to your FSA, but they aren’t required to.
With an FSA, you submit a claim to the FSA (through your employer) with proof of the medical expense and a statement that it hasn’t been covered by your plan. Then, you’ll get reimbursed for your costs. Ask your employer about how to use your specific FSA.
To learn more about FSAs:
Contact your employer for details about your company’s FSA, including how to sign up.
They are limited to $3,050 per year per employer. If you’re married, your spouse can put up to $3,050 in an FSA with their employer too.
You can use funds in your FSA to pay for certain medical and dental expenses for you, your spouse if you’re married, and your dependents.
You can spend FSA funds to pay deductibles and copayments, but not for insurance premiums.
You can spend FSA funds on prescription medications, as well as over-the-counter medicines with a doctor’s prescription. Reimbursements for insulin are allowed without a prescription.
FSAs may also be used to cover costs of medical equipment like crutches, supplies like bandages, and diagnostic devices like blood sugar test kits.
You generally must use the money in an FSA within the plan year. But your employer may offer one of 2 options:
It can provide a “grace period” of up to 2 ½ extra months to use the money in your FSA.
It can allow you to carry over up to $610 per year to use in the following year.
Your employer doesn’t have to offer these options. If it does, it can be either one of these options, but not both.
Plan ahead At the end of the year or grace period, you lose any money left over in your FSA. Don’t put more money in your FSA than you think you’ll spend within a year on things like copayments, coinsurance, drugs, and other allowed health care costs.
