by admin | Oct 5, 2022 | Health Insurance, Open Enrollment
For most employers, employee benefits represent a significant portion of their overall budget and a critical part of their employee recruitment and retention strategy. Benefits vary from employer to employer but can range from medical or dental insurance to flexible spending accounts, life and disability insurance, and more. The annual process of renewing those benefits involves a great deal of work, most of which is unseen by employees.
As you finalize your benefits lineup for the next year and hold your first open enrollment meeting, we’re sharing five tips related to common issues we hear from Mineral customers each year.
There are different ways to handle benefit elections. They range from affirmative or “active” elections that require everyone to select options, to evergreen “rolling” elections that only require employees to take action if they want to make changes. There are also many other options in between. Which option an employer chooses depends on their strategy for participation, the types of benefits they offer, state wage deduction rules, and other factors. Before you get started with benefits elections:
- Double check to confirm that any election rules you are using during open enrollment match what was discussed with your insurance carrier or third-party administrator (TPA), as well as matching what you say to employees in plan materials and open enrollment communications.
- Decide what happens if an employee who is enrolled in coverage takes no action during open enrollment. Will their coverage be dropped? Will some or all of their elections carry over to the next plan year? Clearly communicate the consequences of inaction, if any.
Don’t Forget About COBRA!
Federal COBRA applies to most employers that offer group health coverage and that have 20 or more employees. COBRA allows employees (and certain dependents) who experience qualifying events during the plan year to continue coverage for a period of time, at their own cost. Many states have similar laws for employers with fewer than 20 employees, often called “mini-COBRA” laws. Individuals who have elected federal COBRA have many of the same rights as active participants and must be provided the option to waive or elect coverage or add or remove dependents as well. To notify employees of their COBRA rights:
- Clarify who is responsible for sending open enrollment information to COBRA qualified beneficiaries. If you administer COBRA in-house, ensure the person responsible knows open enrollment communications should include COBRA qualified beneficiaries.
- If you are using a third-party vendor for COBRA administration, make sure they send any required communications or paperwork to eligible employees. If the vendor doesn’t do this, the responsibility generally falls on the plan sponsor (the employer).
Leverage Attention
The open enrollment period happens when employees are paying closer attention to benefit-related topics. Open enrollment meetings and communications can present additional opportunities to gather data and insight into the needs and experiences of participants in your benefit programs. Use this time to:
- Consider including an employee survey or otherwise collecting feedback, even anecdotally, on areas of interest or concern. This might include asking for feedback on the open enrollment process and communications. If you hear grumbling about a specific process or hear people express confusion about a particular option, that can be a great way to identify opportunities for education or change. For example, if several people mention in an open enrollment meeting that drug prices are too high, you might decide to send a follow-up communication to remind employees about bulk mail order prescriptions and the additional value that can provide.
- Consider a dependent audit. Dependent audits ensure only eligible individuals are on the plan, which keeps employers in compliance with their plans as written and reduces any unnecessary costs for ineligible dependents. Timing an audit to occur just before or during open enrollment can reduce compliance complications if a dependent is deemed ineligible.
Carefully Review Salary Deduction Agreements
Benefit costs typically change from year to year and most state wage and hour laws require employees to authorize payroll deductions for benefit contributions. Use this time to review your existing deduction agreements and ensure they cover the most current options. Then gather updated deduction agreements from employees. As you review these agreements, consider the following questions:
- Do they clearly indicate the approved amounts to be deducted from pay and the frequency?
- What rights do employees have to choose whether or not their cost share is taken pre-tax or after-tax? If you have a § 125 cafeteria plan in place, confirm the options available so your deduction agreements accurately reflect the choices available to employees.
- Do they address deductions from final pay (e.g., double deductions)? Caution: Cafeteria plan rules do not allow for double deductions from final pay in most cases, and state wage and hour laws can heavily restrict this as well.
Align Processes
Carefully review your electronic or online benefits enrollment systems to confirm the options and language align with the plan rules, and consider the following:
- If you use a universal enrollment form or electronic system, confirm they contain any insurance carrier or TPA required arbitration or enrollment language, so the election is considered valid.
- Put an audit process in place so that, after open enrollment, you can confirm the elections made by employees are transmitted to the carrier/TPA accurately and payroll entries are aligned.
- Provide employees with a confirmation statement that outlines their final election choices and deduction agreements. Also, consider reminding employees to confirm this statement against their first payroll of the new plan year to make sure it reflects their choices. Both steps can go a long way to catching mistakes early, when they are easiest to compliantly correct.
Planning ahead can result in a more effective, streamlined process for the employer and clarity for employees.
By Eeloria Brown
Originally posted on Mineral
by admin | Sep 27, 2022 | Financial Planning
According to most retirement savings statistics, saving for retirement is something a lot of people put on the backburner. Until it is too late, that is.
For some people, the reason is that they are simply living paycheck to paycheck, so there isn’t much left to put aside. Others have some leftover money after covering the monthly expenses but aren’t sure how much they need to put in their retirement fund. Retirement is expensive and you need to know how much money you will need each year.
Most experts say your retirement income should be about 80% of your final pre-retirement annual income. That means if you make $100,000 annually at retirement, you need at least $80,000 per year to have a comfortable lifestyle after leaving the workforce.Facts:
- Only half of Americans have calculated how much they need to save for retirement.
- In 2020, more than a quarter of private industry workers with access to a defined contribution plan (such as a 401(k) plan) did not participate.
- The average American spends roughly 20 years in retirement.
Remember…Savings Matters! Here are 6 Ways to Save for Retirement:
1 – Focus on Starting Today – Start saving as much as you can now and let compound interest – the ability of your assets to generate earnings, which are reinvested to generate their own earnings – have an opportunity to work for you. Develop a plan and stick to it.
2 – Take Advantage of Your Employer’s 401(k) plan – Try to save at least 10-15% of your pay in a tax-advantaged retirement account, such as a 401(k). Make sure to increase your contribution or at least set up an auto-escalation so that you put in more each year.
3 – Meet Your Employer’s Match – If you employer offers to match your 401(k) contributions, make sure you contribute enough to take full advantage of the match. For example, an employer may offer to match 50% of employee contributions up to 5% of your salary. That means that if you earn “$50,000 per year and contribute $2,500 to your retirement plan, your employer would add another $1,250. It is essentially free money! Don’t leave it on the table.
4 – Invest in an Individual Retirement Account (IRA) – There are two IRA options: a traditional IRA or a Roth IRA. The taxes from your contributions and withdrawals are different with these two types of IRA’s so be sure to choose the type that is right for you.
5 – Take Advantage of Catch-Up Contributions – Turning 50 years old has some advantages, including being able to contribute more to your retirement account with catch-up contributions. In 2022, you can add an extra $6,500 per year in catch-up contributions, bringing your total 401(k) contributions to $27,000. For either a traditional or a Roth IRA, the annual catch-up amount is $1,000 which boosts your total contribution to $7,000.
6 – Find Out About Your Social Security Benefits – Social Security retirement benefits replace 40% of pre-retirement income for retirement beneficiaries. You can estimate your benefit by using the retirement estimator on the Social Security Administration’s website.
Debra Greenberg, Director of Retirement and Personal Wealth Solutions for Bank of America said, “Recognizing the need to put money away for retirement is the first step.” Understanding how much you want to save and setting goals to achieve your financial goals is vital. Starting too late and saving too little is a common regret among retirees. Making the effort now can help you look forward to your golden years.
Even with these tips, you’ll need more information. Talk to your bank or financial advisor to get practical advice to start saving today!
by admin | Sep 20, 2022 | Hot Topics, Human Resources
By all accounts, the United States is likely heading into a recession. Already, the country experienced two consecutive quarters of declining gross domestic product (GDP), which is a red flag.
Other signs include inflation, the cooling down of venture capitalist’s investment, a declining stock market, and varying interest rates. However, a strong job market persists, which throws off the usual domino effect, according to CNBC. Still, how people feel about their financial prospects matters, too.
Most Human Resources leaders are preparing for the worst. A recession is marked by an extended downturn in the economy, layoffs, unemployment, and lower consumer spending. For HR, recessions are magnified because they usually face the downsizing of their own department and the need to layoff talent, make due with less, and face the obvious consequences, which include having to constrict budget and lose talent pipelines for succession.
Therefore, Human Resources is usually keen on recession-proofing their business, and many have begun to do just that. Here are some ways to prepare for the coming storm:
Stick to the Budget
The pandemic made employees rethink their lives and shift their priorities. As a result, many were willing to leave the workforce unless employers transformed how they worked. The consequence was the Great Resignation. Whether one likes or hates that title, there is no question that the phenomenon of people quitting and a resulting labor shortage, which is also dependent on changing demographics, are real.
HR responded with signing bonuses and hefty pay raises. They plussed perks and benefits. With an oncoming recession, however, some of these tools for attracting talent must be curtailed or flat out stopped. Those with the future in mind are cutting back and avoiding risk when developing budgets.
Prioritize Employee Engagement and Experience
Smart Human Resources leaders recognize that the pandemic earned them their seat among C-suite executives. Business leaders are well aware that the talent churning out the work is vital to their success.
In many ways, employee engagement and experience is even more important in a recession. If there are layoffs, the people who remain become paramount. At the same time, they are likely overworked and stressed by the economy, not to mention the prospects of their organization. HR should step in and show gratitude and do what it can to keep up morale. Writing thank you cards and lending an ear are affordable ways to connect with workers.
Be Transparent
Transparency is of the utmost importance during a recession. Obviously, organizations keep their plans for layoffs under wraps until the last minute. However, they should be able to offer honesty to the employees who remain.
Obviously, they are going to be concerned for their own future, what these layoffs mean for the future of the company, and how their work life will change from this point on. Will they be doing more work to fill in for those who had been let go? Are there going to be freezes on annual raises? How grave is the situation?
Human Resources is the conduit for communication with workers. HR leaders can communicate forthrightly and encourage executives to do the same. They can set up town halls, similar to the ones they planned during the pandemic, with business leaders in their organization. This kind of approach is crisis management 101.
Be Prepared for Layoffs
Layoffs are already happening at a number of companies, including Peloton, Netflix, and Ford. Google announced a hiring freeze. So, realistic HR leaders will prepare themselves for the possibility of stalemate at best and layoffs at worst. Also, they will avoid layoff mistakes, like informing people they are being let go in a cruel way like, for example, over a group Zoom meeting. While no one wants a recession to happen, smart HR leaders are getting ready for the worst case scenarios.
By Francesca Di Meglio
Originally posted on HR Exchange Network
by admin | Sep 13, 2022 | Hot Topics, Human Resources, Workplace
Many young employees from Gen Z are taking to TikTok to express their frustration about the workplace and profess their practice of quiet quitting. Essentially, they are remaining at their jobs and still receiving paychecks and benefits, but they are sticking strictly to their the job descriptions and maintaining precise schedules.
On social media, some are bragging about doing the bare minimum because of their disappointment in their employer or simply as a lifestyle choice. Some older workers are suggesting this is a result of laziness or lack of ambition. Many in Gen Z argue that they are simply doing what is expected of them contractually, and nothing more, to maintain work-life balance.
The Phenomenon of Quiet Quitting
More than 3.9 million TikTok posts (and presumably counting) have addressed this phenomenon. Many explain that quiet quitting is really about setting boundaries and improving work-life balance or fighting the proverbial man.
“You’re not quiet quitting,” says Claudia Alick in a TikTok video. “You’re just resisting being stolen from. Unfortunately, that’s how capitalism works. That’s how they make a profit. The profit comes from you not getting paid your full value.”
But some career experts and even other TikTok users suggest that young employees are playing with fire. By never going above and beyond, they are making themselves vulnerable to layoffs at a time when budget is a concern. In addition, they might rule themselves out of promotions down the road.
Emily Smith, a TikTok user, reminds people that their boss might not know all their tasks or how long it takes for them to get everything done. She suggests having a conversation about what to prioritize and how to spread out the deadlines is a better route than quiet quitting. Others suggest this practice is bad news for employers.
“Experts say any lack of motivation among a company’s youngest workers can become a troubling sign. ‘Organizations are dependent on employees doing more than a minimum,'” says Mark Royal, senior director for Korn Ferry Advisory, according to a Korn Ferry blog.
What Should HR Do?
HR leaders should investigate the phenomenon of quiet quitting to determine whether it is happening at their organization. After all, a lack of employee engagement is top of mind in Human Resources. Thirty percent of those who responded to the latest State of HR report said employee engagement and experience is their top priority.
The pandemic forced people to rethink their lifestyle and reprioritize work. For many, family, friends, and personal pursuits have replaced work in the top spot. Some say that quiet quitting is the new checking out. Regardless, the Great Resignation has shown that employers, who do not take these shifts in culture seriously, will pay in a loss of talent.
At the same time, the top consequence of the pandemic, according to the respondents of State of HR, was burnout. That may be why TikTok users are leading the charge to demand better working conditions. Certainly, HR leaders are responding with different benefits, such as unlimited PTO and zen rooms, and policies like devising rules that limit calls and emails outside of work hours.
Even Goldman Sachs, famous for its 100-hour work weeks for associates, is requiring employees to take paid time off. Salesforce is testing work weeks with no meetings. Others are experimenting with four-day work weeks, flexibility in when and where employees work, and company-wide vacation days. This experimentation is part of the transformation of work that everyone is witnessing post pandemic.
The question becomes whether quiet quitting is an afront to employers that will degrade their ability to serve customers and innovate or is simply a new way of working that puts people’s personal lives and wellbeing above everything else. Perhaps, this is just part of the cultural shift and workplace transformation the country has been experiencing since the start of the pandemic.
By Francesca Di Meglio
Originally posted on HR Exchange Network
by admin | Sep 5, 2022 | Hot Topics, Human Resources
“Financial Wellness” is getting a lot of buzz these days — and for good reason! After all, today’s workforce is overwhelmed by mounting student debt and other rising expenses.
Financial wellness refers to a person’s overall financial health and is one of many factors that makes up employee wellbeing. We often think of wellbeing as related to physical and mental health, but financial stress impacts a person’s health as well. When employees are stressed about their financial situation it effects their productivity, attendance and engagement in the workplace.
Organizations are continually looking for ways to stay competitive and have an advantage in attracting and retaining qualified employees. With the current economic conditions, people are looking for jobs that offer more than just paid time off and health insurance. Therefore, many businesses have turned their focus to employee financial wellness programs to add value to their compensation packages. More than 51% of organizations offer financial wellness initiatives and 29% of companies are interested in launching financial wellness programs. Offered as a voluntary benefit, financial wellness programs send employees a valuable message, letting them know their company cares about them and is ready to extend a helping hand to those in need.
The goal of implementing a financial wellness program is to support and improve the financial health of employees by providing tools and resources to help them manage their current finances, protect against unforeseen financial hardships, and plan for a financially secure future.
Let’s take a look at some of the financial wellness solutions available:
- Educational Programs – An education-focused program that equips employees with the information they need to plan for emergencies using current employer benefits. Financial guidance sessions and financial education workshops are available via live chat that teach employees about budgeting, credit scores, retirement savings and savings accounts.
- Employer Matching Programs – A matching program involves an employer matching a certain percentage of contributions that employees make to their 401k, student loan repayment or a 529 (college savings) fund.
- Financial Assistance Programs – These programs focus on alternative stressors employees might not have considered as a factor in their financial health. These include medical bill zero-interest financing, medical bill negotiation, relocation assistance and stock options.
- Insurance Options – Employers can consider including alternative insurance programs such as long-term care insurance, pet insurance, adoption and fertility insurance, accident insurance, critical illness insurance, and life and disability insurance.
Over the past year, employee financial distress has intensified, which means it’s the perfect opportunity to bring financial education into your workplace. It won’t be easy. Reducing financial stress and improving financial health for your employees takes a comprehensive plan, but it will be worth the investment. Your commitment to prioritizing financial health will help improve the lives of your employees. Financially healthy employees are healthier and happier; they are better for the company’s bottom line.
