"Killer Benefits" is the term used to describe an unbeatable benefits package offered by your employer. Unbeatable without question.
This article can be summarized as follows: "Organizational periods of hyper growth are rarely sustainable in the long term. While "Killer Benefits" are a great way to attract and retain the best talent during periods of rapid growth, they can become a real liability to your organization when things slow down and expenses must be kept in check."
The rest of the article details Employee Benefits packages at Facebook and Google. Read it here. In this economic uncertainty, I don't think this will be a concern but the point here is extremely valid. Be pragmatic.
Wednesday, December 10, 2008
Tuesday, December 9, 2008
Incentive Laden Benefit Plans
A program in from the University of Pennsylvania produced compelling results recently. The program was developed to test the value of incentives in achieving health improvements.
The results: individuals who received cash incentives to lose weight had greater success than the than those who did not. In fact, the incentive groups lost 13 and 14 pounds while those without incentive lost only 4 pounds in four months.
Dr Kevin Volpp concluded, "many weight-loss programs fail because people are being asked to make sacrifices now for rewards in the future."
This study supports the movements in consumer-friendly health care. Incentives provided by health insurance carriers are aimed at driving healthy behaviors amongst employee groups. Read the article here.
The results: individuals who received cash incentives to lose weight had greater success than the than those who did not. In fact, the incentive groups lost 13 and 14 pounds while those without incentive lost only 4 pounds in four months.
Dr Kevin Volpp concluded, "many weight-loss programs fail because people are being asked to make sacrifices now for rewards in the future."
This study supports the movements in consumer-friendly health care. Incentives provided by health insurance carriers are aimed at driving healthy behaviors amongst employee groups. Read the article here.
Why YOU Need To Understand Health Care Benefits
Employers are the foundation of health care in America.
PROOF:
- 71% of Americans receive employer sponsored health benefits.
- A stunning 96% of Americans receive dental benefits from employer sponsored plans or affinity groups.
However, health care benefits and access to them vary by your job. According to an October Forbes article, "least educated, lowest wage workers suffered the greatest erosion of coverage" from employer sponsored plans. "Employees with a post-graduate degree are nine times more likely to have health insurance from their employer than those with less than a high school education." (Read the Forbes article here.)
Regardless of such trends...a few significant concerns have surfaced amid the economic downturn.
- Many Americans have an insufficient understanding of health care, benefits, and insurance without their employers involvement.
- Employers facing operating crises are not being transparent with employees. A recent NYT article details the events surrounding the demise of a cookie maker. The company closed its plant on Oct 3. and hadn't paid benefits premiums, effectively leaving all employees without health care benefits. Read the article here.
The article details a woman who immediately induced labor for the hope that the insurance company would cover the procedure. What a terrible situation.
While companies have made huge investments in benefits programs, employees need to be more knowledgeable and more engaged. Benefits are simply too important.
PROOF:
- 71% of Americans receive employer sponsored health benefits.
- A stunning 96% of Americans receive dental benefits from employer sponsored plans or affinity groups.
However, health care benefits and access to them vary by your job. According to an October Forbes article, "least educated, lowest wage workers suffered the greatest erosion of coverage" from employer sponsored plans. "Employees with a post-graduate degree are nine times more likely to have health insurance from their employer than those with less than a high school education." (Read the Forbes article here.)
Regardless of such trends...a few significant concerns have surfaced amid the economic downturn.
- Many Americans have an insufficient understanding of health care, benefits, and insurance without their employers involvement.
- Employers facing operating crises are not being transparent with employees. A recent NYT article details the events surrounding the demise of a cookie maker. The company closed its plant on Oct 3. and hadn't paid benefits premiums, effectively leaving all employees without health care benefits. Read the article here.
The article details a woman who immediately induced labor for the hope that the insurance company would cover the procedure. What a terrible situation.
While companies have made huge investments in benefits programs, employees need to be more knowledgeable and more engaged. Benefits are simply too important.
Thursday, December 4, 2008
Economy And What It Means For You
An article on WFLA highlighted the results of several recent surveys indicating employers are trimming back expenses in the wake of economic uncertainty.
As the job market becomes less stable and in light of this news, it is increasingly important for Americans to put hard earned dollars away in an emergency fund. These funds can be used to counter adverse circumstances like medical care, auto repair, etc.
When employers tighten their collective belt, employees should follow suit. According to a Watson Wyatt survey, 25 percent of companies surveyed indicated they would impose a hiring freeze in the next 12 months. An additional 25 percent indicated they would raise the amount employees need to contribute to healthcare plans.
For employees, it's time to take a look at your expenditures to eliminate some of the unnecessary spending. Do you really need 934 HD channels? What about $4 Starbucks coffees?
Be prudent...if your employer is cutting back, you should prepare as well.
Read the article here.
As the job market becomes less stable and in light of this news, it is increasingly important for Americans to put hard earned dollars away in an emergency fund. These funds can be used to counter adverse circumstances like medical care, auto repair, etc.
When employers tighten their collective belt, employees should follow suit. According to a Watson Wyatt survey, 25 percent of companies surveyed indicated they would impose a hiring freeze in the next 12 months. An additional 25 percent indicated they would raise the amount employees need to contribute to healthcare plans.
For employees, it's time to take a look at your expenditures to eliminate some of the unnecessary spending. Do you really need 934 HD channels? What about $4 Starbucks coffees?
Be prudent...if your employer is cutting back, you should prepare as well.
Read the article here.
Tuesday, December 2, 2008
Small Business Benefits - OVERLOAD
Benefits Selling Magazine recently highlighted a study by Guardian. The study concludes that small businesses are often overwhelmed with "administrivia" during open enrollment.
Small businesses do not have the personnel bandwith to handle all the added paperwork. While this is seldom addressed during benefits selection, employers should ask their brokers and agents about the scope of work for enrollment. Many insurance companies and providers are willing to provide assistance during enrollment to ease the workload.
The results show, "The most frequently cited problems associated with enrollment are managing paperwork (23 percent) and engaging employees (42 percent). Twenty-three percent of small employers said getting employees to submit completed forms on time was a problem, and 20 percent said they had difficulty conveying information about options." To read the full article, click here.
Administrivia - n. Being overburdened with trivial administrative responsibilities!
Small businesses do not have the personnel bandwith to handle all the added paperwork. While this is seldom addressed during benefits selection, employers should ask their brokers and agents about the scope of work for enrollment. Many insurance companies and providers are willing to provide assistance during enrollment to ease the workload.
The results show, "The most frequently cited problems associated with enrollment are managing paperwork (23 percent) and engaging employees (42 percent). Twenty-three percent of small employers said getting employees to submit completed forms on time was a problem, and 20 percent said they had difficulty conveying information about options." To read the full article, click here.
Administrivia - n. Being overburdened with trivial administrative responsibilities!
Monday, December 1, 2008
Low Cost Perks
While surfing YouTube, I watched this little video on employee benefits, outside of standard benefit plans. As a business owner, it is important not to overlook the little things. There are some very simple, yet great ideas to get your employees to appreciate their workplace...especially in a tough economy. Watch it here.
New Information and Overview of Benefits Trends
Came across the Crain's Benefits Outlook. Published by the business daily, the website has significant information on employee benefits. Very good and recent information for benefits professionals as well as employers. View the information, here.
Specifically, there is a great article on High Deductible Health Plans. The article debates the future of this growing benefit plan. Quotes from representatives of Aetna and United Healthcare indicate that "Big Insurance" is making significant investments in these programs. In fact, United Healthcare has positioned itself significantly behind these types of innovative plans. HDHP plans and other innovative benefit products like the Pendant Health Defined Contribution Plan bring employees closer to self-management of benefits. Through incentives and tools, employees are provided ample information to begin to manage their health care and health care budgets. Read the article here.
Specifically, there is a great article on High Deductible Health Plans. The article debates the future of this growing benefit plan. Quotes from representatives of Aetna and United Healthcare indicate that "Big Insurance" is making significant investments in these programs. In fact, United Healthcare has positioned itself significantly behind these types of innovative plans. HDHP plans and other innovative benefit products like the Pendant Health Defined Contribution Plan bring employees closer to self-management of benefits. Through incentives and tools, employees are provided ample information to begin to manage their health care and health care budgets. Read the article here.
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