What You Should Know for Your First Open Enrollment

Open enrollment is taking place across the United States, and like millions of workers, you must submit your choices by a certain deadline. Many younger employees, however, are unsure about what types of coverage to select and how much and are tempted to wait until the last minute. This can lead you to decisions you may regret and financial setbacks.

 

Instead, take a minute to explore why benefits deserve your full attention and how to make the right choices.

 

Why Benefits Are Worth Your Attention

 

It’s tempting to procrastinate about benefits enrollment and you’re not alone. According to a recent MetLife survey, among young respondents (ages 21-38), about one in five spend only a few minutes reviewing benefits choices before making selections. And nearly half said they dread making annual benefit enrollment decisions equally as much as asking for a raise.

 

There are many reasons why you should think carefully about your benefits, including:

 

Benefits are part of your total compensation package. In fact, according to the Bureau of Labor Statistics, for every $2 employers spend in wages and salaries, they spend an additional $1 in benefits.

  • . Many employers are investing in their employees through generous benefits programs in order to attract the best employees, so you should take advantage of all they offer you.
  • Unexpected illness and accidents CAN happen. Per the Council for Disability Awareness (CDA), more than one in four of today’s 20-year-olds can expect to be out of work at least a year before they reach retirement age. This underscores why benefits like disability insurance are critical.
  • Benefits protect your savings. Most experts say people should have enough money to cover three to six months of living expenses if you’re unable to work, yet according to The CDA, only about half of adults in the U.S. have enough to cover just three months. In the MetLife survey, more than a quarter of young respondents said they could barely cover two weeks. Benefits help reduce financial burdens and anxiety, keeping money in your pocket.

 

How To Make the Right Choices

 

Especially for employees early in their career, being thoughtful about open enrollment can make the difference between achieving short- and long-term financial goals and pushing them off.

 

  • Assess your personal situation. Take an honest look at your lifestyle, health, family history and more before making selections. Consider your financial goals that could be thrown off by unexpected expenses. Many employers offer legal services, for example, that help reduce the cost of hiring a lawyer for speeding tickets, wills or landlord disputes.
  • Have meaningful conversations. Talk to trusted friends, colleagues or family for advice. MetLife’s survey found that just one-quarter of young people asked for advice from a friend before making benefit decisions. Conversations with people you trust can help you understand the personal value of benefits and provide insights you haven’t considered on how they relate to your life.
  • Do the research. Carefully read the full benefits package, as well as any additional material your employer may have available, such as videos and online guidance tools. You might be surprised about new offerings, or what existing options cover. For example, disability insurance might support mental and emotional illnesses, and some companies may offer auto and home insurance, or tuition reimbursement.

 

The bottom line is that employers offer benefits to stay competitive and help employees thrive. It’s up to employees, however, to make the most of the package to achieve their goals. By paying attention to your package, you can select the right “sweet spot” of benefits to build a better life.




Helping New Employees Find a Mentor

Every HR professional aspires to create a happy and engaged workforce. You might be surprised to find that one of the top ways to do so is to encourage a strong mentorship program.

An overwhelming 91% of workers who have a mentor say they are satisfied with their jobs, and more than 40% who didn’t have a mentor said they had considered quitting theirs. These numbers indicate that encouraging mentorship can have a clear positive effect on your workforce retention efforts—not to mention starting your newer employees on a positive path. Here are some ways to create a program that’s beneficial for all.

  1. Decide whether your program will be formal or informal.

A lot of this will depend on the size and demographics of your company. While everyone can benefit from inter-office networking via employee resource groups, a true mentoring effort requires a more involved, committed group. Companies that have a formal mentoring program create a process to explore the interests and experience of both protégé and mentor candidates to determine the best fit. (This sample questionnaire can help you start the matching process.)

While this is an ideal scenario, you need a critical mass of participants to make it work. If you only have a few new people each year, it might be best to hand pick a few executives who could be a good fit and ask them if they’d be willing to meet informally with these new employees as they begin their journey.

  1. Address privacy and confidentiality concerns.

HR is in an ideal position to handle a mentor program because of your ability to handle these very real concerns. To avoid any sexual harassment accusations in today’s environment, require that mentoring activities take place in a public setting, such as a conference room with an open door or a restaurant. Encourage all parties to immediately come forward with any concerns. Also, remind mentors that they need to create an environment of trust so that the newer employee feels confident asking them for advice with certain skills, without fear of repercussions that the mentor may relay private information to a supervisor.

  1. Hold some organized functions to help facilitate connections.

One-on-one relationships can be difficult to maintain, either because of people’s busy schedules or if there isn’t a personality fit. That’s why a successful mentoring program should also include some group activities that can create a more comfortable environment that removes the pressure of exclusively having one-on-one meetings. Consider bringing in speakers for a lunch-and-learn or moderating a panel Q&A.

  1. Share some best practices for successful mentor relationships.

    Many busy professionals might worry they don’t have adequate time to devote to a mentoring relationship. Help ease the burden by sharing some ground rules that will help keep the time commitment reasonable:
  • Have each party discuss times that work for them and remind the mentee to work around the mentor.
  • Suggest ways that they can interact if face-to-face meetings are challenging to schedule. For example, they might have a phone call or Skype session if the mentor travels frequently or telecommutes.
  • Urge mentees to create an agenda before each meeting with key topics they most want to discuss. That helps give each party time to prepare and directs the conversation so that both will feel that the interaction was worthwhile.
  • Remind the mentees to share their progress with the mentors, both to help nurture the relationship and to help the mentor feel their advice is being used.
  • Suggest alternative learning experiences, such as a mentor taking the new employee to industry functions or client meetings, as appropriate. These organic development opportunities can be extremely valuable and help make the most of the mentor’s time.
  1. Help them get off on the right foot.

Any new relationship can feel a bit forced or awkward at the outset, which is to be expected. That’s why the pairs might feel more natural if they start off with a prescribed format and agenda. For example, you might have a kick-off event, then suggest that the pair meet for coffee or lunch within the next two weeks. Supply a list of “get-to-know-you” questions about interests, experience, education and career path and goals to help provide a framework for future discussions. Encourage the mentor to share some personal insights about both successes and failures to help put the mentee at ease.

Then every other week or so, send out some suggestions for questions that can help guide the conversation.

  1. Include a “reverse mentorship” element.

Most workplaces today have multiple generations, and it’s clear that everyone has a lot to learn from each other. While more seasoned employees can impart hard-learned best practices and company history, younger employees typically have their pulse on technology in a way that only a digital native can.

When General Electric’s CEO Jack Welch famously introduced one of the most well-known “reverse mentoring” efforts in 1999, the internet and social media were in a fledgling state. Now, even older generations have embraced the power of tech, and yet, those just entering the workforce still have a grasp on new ways to use technology to increase productivity. They can share ideas for apps and other techniques that can make many entrenched processes more agile or give best practices for more polished presentation tools.

  1. Create some loose parameters but allow relationships to grow organically.

You might encourage the mentor pairs to meet every couple of weeks or so in order to grow the relationship, but remember that not every pair will be a fit—and that’s ok. Some might decide to take it the next level and meet more often, while others might only meet a few times. HR’s goal should be to create the opportunity for relationships to grow and then sit back and let each pair create what’s meaningful to them.

  1. Seek ongoing feedback.

As with any program, there are always opportunities for improvement. Seek candid feedback from both sides on what was valuable and any shortcomings, so you can tweak the program design over time.




What HR Should Know About Gen Z

Move over, Millennials. Today organizations are thinking about Gen Z, the newest cohort joining the workplace. While millennials remain the largest group in the workforce today, they are increasingly being joined by their “younger sibs,” a generation that the Pew Research Center defines as being born from 1997 on.

New college grads fit the bill, as do the high schoolers who will soon be coming on board. Here are five traits to know about this generation and how to create a workplace that appeals to them. (The great news is that most generations will appreciate the new dynamics as well!)

The Trait: Gen Z isn’t afraid to jump ship.

While this can seem like a downside, it’s wise to know this about the generation—and work to keep them happy. There’s a reason they’re more prone to move around, and that’s because they saw the damage done to their parents and neighbors who might have worked long hours at a job, only to see their company fail to offer that same loyalty in return. In addition, they’ve seen their millennial counterparts who presumably did the right thing by graduating from college being inundated with student loans and sometimes unable to find a job commensurate with their education. “The traditional power dynamic that views corporate overlords as holding the keys to job stability, benefits, and great pay isn’t shared by Gen Z. That spells potential disaster for employers that believe they hold all the cards,” explains an article on Quartz.com.

What HR Should Do: Cultivate a work culture that puts them first. Invest in them through proper onboarding, then training and interesting work that will keep them satisfied. Make sure that a full slate of benefits meets their needs. And then realize that they might not intend to be lifers, and that’s ok. When one leaves, hopefully another one will be there to take their place, bringing all the enthusiasm and creativity that comes with a new hire.

 

The Trait: Gen Z is truly digital first.

While millennials came of age during the digital revolution, most Gen Zers have never known a world without answers at their fingertips or social media impacting their life view.

What HR Should Do: Embrace the fact that they are going to post on social media by offering Instagrammable-events and inviting them to share company content. Make sure you have developed and share a solid social media policy; as in, highlighting confidentiality best practices and letting them know if they need to tag photos with your company name. And, make sure that your own social media and online presence reflects a place this group would be happy to join.

 

The Trait: Gen Z is eager for leadership and development opportunities.

Gen Z has spoken: The members of the graduating class of 2019 ranked ongoing continuing education as a top priority in their job search. That’s likely because of all the rapid technological change they have seen so far in their lives, coupled with the ongoing discussions of AI and automation potentially changing the dynamics of many workplaces.

What HR Should Do: Make sure that a robust culture of learning and development is prominent in your organization. Whether you offer options for online or in-person classes or focus more on cross-training and apprenticeships, show your newer employees that you are eager to have them grow with you—or you risk having them grow away from you.

 

The Trait: Gen Z craves flexibility.

Work/life balance has given way to a new concept of work/life blend. That’s because Gen Z has never known an environment where their personal and “other” lives weren’t completely intertwined. While they probably won’t balk at answering an email after hours, they also expect that sometimes they can take a longer lunch for an eye doctor appointment or come in late if they’ve been crunching on a project. That’s why flexible hours are consistently cited as one of the top draws for a job, finds online job site Glassdoor.

What HR Should Do: Of course, sometimes it’s not possible to accommodate all the flexibility an employee might want, but try to find ways that they can have some control over their work hours.

 

The Trait: Gen Z welcomes feedback.

Forget “annual” reviews. One study found that nearly 60% of the Gen Z cohort want check-ins from their managers at least weekly, and many would prefer daily. That allows them to course correct in the now, rather than taking a “rear-view” mirror perspective about what they could have done. Giving them tangible, actionable insights allows this “video game” generation to measure how well they are doing in “leveling up” to new skills and behaviors.

What HR Should Do: Offering constant feedback can seem daunting but it doesn’t have to be. While HR might have a more formal process in place, equip your managers with best practices on how they can help create a culture of continuous feedback, such as having short weekly check-ins with each employee, giving a five-minute debrief after meetings or presentations and starting each week with a concise team meeting to align on goals and also share quick performance updates in a group setting.




Ten Ways to Make your First Day Awesome

New on the job? As they say, you never get a second chance to make a good first impression. Here are 10 ways you can rock your first day, setting yourself up for success from the start.

  1. Do your homework beforehand.

The last thing you want to do is start the day frazzled because you were late. So do everything you can to prepare the night before: Choose your outfit; confirm where you’re meeting your manager and where to park; finish all your onboarding paperwork; and check the traffic or the bus schedule in case you’ve not visited the office during the busy commute hours.

You’ll also want to prepare a little 10-second summary of who you are and what you’ll be doing for everyone who asks.

  1. Be enthusiastic.

Even if you feel overwhelmed, fake it ‘til you make it, as they say. That means putting a smile on your face and showing you’re happy to be there. Gladly answer questions about your background, even if 20 people have asked the same question as you made your rounds. You want everyone to know that you’re delighted to be part of the team and are going to jump in with both feet.

  1. But don’t be toooo eager.

Yes, there is a happy medium. There’s a difference between wanting to be an asset to the department and immediately offering a bunch of suggestions before you even know how things have been done. It’s too easy for those ideas to be perceived as criticism, and you to be perceived as a newbie who doesn’t know their place. You want to come on strong, but not too strong.

  1. Take notes.

As you’re introduced around, you never know when you might meet someone who shares a gem you should write down to refer to later. Carry a notebook and pen to show you’re interested in gathering all the intel you can. And if it’s awkward to write down someone’s name or other information while you’re standing in front of them, try to jot down what you can remember when you get back to your desk.

  1. Get to know the office “ropes.”

This is a good time to sit down with the HR team to find out what you should know about hours and other workplace expectations, such as whether you can be on the floor by yourself, stay late to work extra hours, etc. This is also a good time to highlight any questions you have about benefits and how to take advantage of those that might be unfamiliar to you.

  1. Say “yes.”

If you’re asked out to lunch, say yes. Ditto a quick after-work powwow. And if someone asks you to be on a committee to plan the next office team building activity, yep…say yes. You want to meet as many people as you can right away.

  1. But don’t get too friendly.

Again with the happy medium. Yes, go out to lunch with someone, but the next day try to go out to lunch with someone different. That’s because until you know who’s who in the zoo, you don’t want to form a fast friendship with someone who might end up being the office gossip. So, keep all your options open as you navigate these first few days of work.

  1. Find out about tech-related office policies.

From your company’s social media rules to their preference that you do work on company-provided devices only, it’s vital to know how your boss expects you to adhere to cybersecurity. For example, you might want to enthusiastically post a selfie on your first day, and they might require that you use a certain hashtag to show you’re an employee. Nail down the specifics before you inadvertently commit a digital-related faux pas.

  1. Embrace your newness.

The good news is that everyone knows you’re new so there’s no reason to pretend to know more than you do. Take advantage of this buffer time to ask all the questions you want; before long, it gets more complicated as coworkers assume you might or should know something, so use this time to ask away. Conventional wisdom says there are no dumb questions, but there are really no dumb questions on the first day! And if you do forget someone’s name, make a joke…”Sorry I forgot your name; I’ve met about 100 people today!”

  1. And, embrace your nervousness.

Wondering if you’ll say or do the wrong thing? You might and that’s ok…this advice isn’t designed to make you feel that you must be perfect! First-day jitters are to be expected, so just take a deep breath, put on a big smile and do the best you can.




Are You Attracting the Right Candidates? How to Make Your Job Descriptions More Inclusive

With unemployment continuing to hover at record lows, HR is often in a bind—how do they attract not only qualified candidates, but also an inclusive slate of candidates? The answer might lie in your job descriptions. If you are just recycling existing boilerplate copy—a common practice in today’s busy world—you might want to rethink your postings to make them more dynamic in order to bolster your applications. Here are some tips.

  1. Use words that are more inclusive.

Studies show that more diverse workplaces lead to better outcomes, but all too often companies have trouble attracting a diverse slate of candidates. Your job descriptions could be to blame. Here is how to foster inclusivity for:

  • Gender: A LinkedIn report found stark differences in how men and women responded to words in job descriptions. For example, the word “aggressive” turned off 44% of women, but only one-third of men. Other words that women tended to shy away from are “demanding” and “powerful.”
  • Age: The “Ageism and Hiring” report from the Association of Talent Acquisition Professionals warns that phrases such as “digital native” and “passionate about social media” can scare off older applicants.
  • People with disabilities: Some job descriptions contain a laundry list of requirements like “must be able to lift 25 pounds” and “must be able to climb stairs.” Sure, some jobs might require that, but often it’s just boilerplate language that can deter candidates. Just for fun, search Indeed.com for “25 pounds” and see the wide range of jobs that include that caveat. Surely, someone else could be called on to lift heavy boxes of office supplies in an administrative position. Take a minute to read through your job posting and see if there is any language that might turn off employees with disabilities.

And for all candidates, consider the words you use to describe your environment. The LinkedIn report offers some replacements that are softer and thus more inviting, such as “fast-paced,” rather than “pressured.” Other words to add to describe your workplace include “supportive,” and “flexible,” which appeals to 60% of women, but also half of men.

  1. Include the salary.

Many companies don’t want to tip their hand regarding salary, but it actually can save a lot of time. After all, if you’re thinking $50,000, and a specific candidate is looking for double that, it’s going to be hard to find a way to meet in the middle. In the long run, it would be better to save your time and energy for sifting through the qualifications of the applicants who are more likely to eventually accept the role if offered.

This is also an important way to show that your company is committed to fair pay practices. Another LinkedIn survey found that nearly 70% of women find the salary and benefits information to be the most important component of a job description.

  1. Don’t worry about longer job descriptions.

One job description that was recently lauded in a story in the Wall Street Journal comes from Basecamp. The lengthy posting gives information about what projects the team has recently undertaken, as well as ideal candidate qualities. For example: “You can expect a mindful onboarding process with ramp-up and time to learn. You can expect a team that listens, and to be heard. You can expect to give and provide direct feedback. You can expect to be counted on. …  A strong track record of conscientious, thoughtful work speaks volumes.”

As you can see, the posting makes the workplace sound engaging, but it also indicates that slackers need not apply to be successful in this environment.

Take the time to give all the information that potential candidates might want in order to save everyone time and frustration.

  1. Don’t rely on job postings to be your only outlet for recruiting.

Today’s candidates have more information at their fingertips than ever before, so it can be challenging to try to erase a poor work environment that’s being discussed online. As an HR executive, it’s wise to pay attention to what is being said about your company at sites like Glassdoor.com. While you can’t delete the postings, you can read them as you would a negative customer review, and determine if you should respond and/or if the problem they are airing deserves addressing. Seeking frequent feedback from your existing team can help make sure that you are handling issues as they arise.

Also spend time actually creating the workplace that candidates will flock to, and use your company website and social media accounts to share the message. Post photos of teams volunteering and make sure your diversity is reflected in the images you choose to post.

And include a spot for information on your alternative benefits from wellness offerings to disability insurance as a way to highlight what you offer.

After all, there is no substitute for the truth in today’s transparent environment.




Educating Employees About Disability Insurance? Ask Them 5 Questions

HR leader educating a group of employees.Employers are offering more and more voluntary benefits—and workers want these benefits. A recent study showed that nearly one third of eligible employees were signing up for voluntary offerings (that’s a higher participation rate than in earlier years). 

Amy Hollis is the national leader of voluntary benefits for HR consultancy Willis Towers Watson. She recently spoke to Workforce about their recent survey. It shows that 70 percent of employers claim voluntary benefits will be an important part of their value proposition in coming years. “Companies are using voluntary benefits to enrich their offerings without additional cost,” she said.

While there is a win-win element to this—it’s a good economic choice for both employers and employees—the story finishes with a stark warning. Rob Shestack, chairman and CEO of the Voluntary Benefits Association in Philadelphia says that HR teams need to be ready to educate. “The most frustrating thing is when HR makes the effort to provide these programs then does passive enrollment,” he says. “It’s like saying you don’t care if people use them or not.”

When it comes to disability insurance, education is that much more important. James Reid of CDA member company MetLife argues something similar in a story in Benefit News:While employees have a general idea of the benefits they use most often (medical, dental or vision), they don’t always grasp the value or need for some of the other benefits which may be available to them (disability or accident insurance, for example).”

Disability insurance is one of the most critical forms of coverage for working Americans—and one of most overlooked. Part of the problem is that people simply don’t understand how relevant it is for modern life

Here are five questions you can ask as a framework for understanding what disability insurance is: 

1. What does disability mean in this context?

Many people hear the word disability and assume it only means catastrophic health issues. In fact, disability can refer to a broken leg from a skiing accident, a pulled back while cleaning out your garage, a cancer diagnosis, or a pregnancy that can put an employee out of work for days, weeks, or months at a time.

Share the five most common reasons that keep people out of work for long periods: Pain in the back and neck, cancer, complications from pregnancy, and mental health issues all rank before accidental injuries, which many assume is the leading cause of disability. You can also share infographics.

2. What are the statistical chances of becoming disabled?

Eighty percent of us live with optimism bias. That’s to say we don’t have a realistic understanding of the risk of becoming ill or injured. This is particularly at work with the younger generations who have grown up with some of the most supportive parents in modern history.

These are the numbers: According to the Social Security Administration, more than one in four of today’s 20-year-olds will be out of work for a year or more for a variety of reasons before they reach normal retirement age. This includes common health conditions such as knee, shoulder, or back injuries, cancer, heart problems, or depression.

Add to that the fact that nearly six percent of workers every year will experience a short-term disability due to illness, injury, or pregnancy. Three quarters of these claims last up to two and a half months, and the rest can last for up to six months or a year.

3. How would you pay your bills?

Ask rhetorical questions as you educate: Will an employee be able to pay their mortgage, phone bill or contribute to their health insurance or retirement plans should a pregnancy, illness, or injury take them out of work for a few days, weeks, or more? This is about laying the foundations for their long-term financial stability.  

Data from the Federal Reserve shows that 40 percent of Americans do not have enough savings to pay for an unexpected $400 bill. Disability insurance pays a portion of someone’s salary when they need to miss work due to an illness, injury, or having a baby. For those who are single, disability insurance is the second most important insurance they can carry after health insurance. And if employees have a family that depends upon them, this insurance gives them an income stream if they need to leave work.

4. What does Workers’ Comp and SSDI cover?

Employees need a realistic understanding of the various safety nets that are in place should they become ill or injured—so they can make an informed decision:

  • Workers’ Compensation: Workers’ Comp only applies to accidents done on the worksite. Disabling illnesses or injuries are much more likely to be non-occupational in origin, which would rule out that coverage.
  • Social Security Disability Insurance (SSDI): The Social Security Administration provides Social Security disability benefits for eligible individuals who have a disability that lasts for one year or longer. Many applicants are denied due to a lack of work history, lack of medical evidence, the temporary nature of their condition, or the fact that people may still be able to work outside of their profession. There are three important things to bear in mind: 1) workers who become disabled off-the-job won’t always qualify for SSDI, 2) they can face average wait times of 600 days for a hearing (that’s nearly two years), and 3) if they do eventually get benefits, the monthly amount (averaging around $1,200, based on the most recent data) probably isn’t enough to help them keep up with their ongoing expenses.  

5. If you want to start a family—what is your financial plan for maternity leave?

If your company doesn’t offer paid maternity leave, this is an important point to raise with women in the workforce. Disability insurance is a critical benefit for many new mothers in the U.S. Indeed, pregnancy is the most common cause of short-term disability (STD) claims. Plans typically cover two weeks before and six weeks after a routine pregnancy. 

Here’s an important note: One of the major differences between pregnancy and other types of disability claims is predictability. For a healthy woman, purchasing coverage through their workplace in anticipation of a planned pregnancy can be a fairly easy transaction. The key is that they buy coverage before they become pregnant. This way there is little risk of underwriting issues or denial of their claim due to a pre-existing condition limitation. (Read more on this here.)

By asking these questions, you can broaden the minds of your employees and give them the larger context of how disability insurance works in real life. That way, it isn’t just vague words on a list in a company intranet.  

To learn more about disability insurance, or to offer your colleagues further reading, guide them to our new consumer microsite: RealityCheckup.org  




Open Enrollment Cheat Sheet: Important Terms To Share With your Employees

As “open enrollment” season looms, HR personnel are getting ready to help their employees make a smart choice regarding their health plan. But often even those employees who are nodding their heads like they know all about the insurance plans you’re discussing are really thinking, “Huh?” Often they’re not sure exactly what the terms mean for them—and their pocketbook.

 

So even though you might be fluent in “medical plan speak,” we thought it might be helpful to take a layperson’s perspective and share some of the confusing terms that your team might be curious about.

 

Health Plan Costs

 

It’s important that employees understand the interaction between these different potential costs they will pay. For example, a low premium might bring with it a high-deductible and vice versa. Help them run some scenarios based on their estimate of how much healthcare they typically consume to figure out which of your different plan options might be best for them.

 

Premium: This is the amount that you pay to your health insurance company for coverage. Often employees have this amount automatically withdrawn from each paycheck.

 

Co-Pay: This is the part of the bill you are responsible for as the consumer. Often you will need to pay the entire portion until your deductible is met.

Deductible: This is the out-of-pocket amount you will pay for your healthcare costs before your insurance starts to cover it. Your plan will tell you what your deductible is—usually there is an amount for each insured (as in member of the family) and a total for all family members. It typically resets each year.

 

Health Plan Limits

 

Covered services: This one seems pretty clear-cut, but not everyone understands that the Affordable Care Act (ACA) ushered in a new standard where certain preventative services are covered free of charge—that is, without a co-pay or deductible payment. A list of those services can be found here. Aside from those, health plans can decide what sorts of services to offer so read your plan carefully if there’s something that’s particularly important to you.

Excluded services: These are services that the health plan specifically says it won’t cover. Examples of typical excluded services might be cosmetic procedures and weight-related offerings.

 

Annual limits on services: Again, pretty self-explanatory; this is how much you can use each service per year. For example, you might be offered 20 chiropractic visits a year and then have to cover the others yourself. Thanks to the ACA, this category can’t cover any “essential benefits,” that include important care like emergency services, prescription drugs and more.

 

Health Plan Types

 

This is not exhaustive, but here are some of the main types of coverage you might offer. If your employees understand the differences between them, they can make the choice that is right for their finances and specific health situations.

 

Health Maintenance Organization (HMO): With an HMO, you will pick a primary physician who is the person who coordinates your care, including providing referrals to specialists. Typically out-of-network care will not be covered in an HMO.

 

Preferred Provider Organization (PPO): With a PPO, you can see any provider who is part of your “network,” usually including specialists, without a referral. Typically you will want to use a provider within the PPO to get the best rates.

 

High-Deductible Health Plans (HDHP): These plans require you to pay for all your services before your coverage kicks in (except the preventative care mandated by the ACA). After you have hit your deductible, then the insurance will pay the benefits as specified by your plan.

 

Most HDHPs are paired with a Health Savings Account (HSA), which allows you to save money tax-free to be used for any medical expenses not covered by your plan. (You will pay taxes and a penalty if you use the money for other purposes before you are 65.) That money is yours…it travels from job to job. For 2019 you can contribute a maximum $3,500 for individual coverage and $7,000 for family coverage to your HSA.

 

Extra Coverage

 

Also, take the time to talk through the benefits of other coverage your company offers, such as long-term disability and short-term disability.

 

And finally, it’s wise to discuss how and when they can change their health plans if they choose, via open enrollment—as you are currently planning for—or, alternately, due to a qualifying event. These include:

 

  • Marriage (and in some cases, divorce)
  • The birth or adoption of a child
  • A permanent move to an area where your current health plan is unavailable
  • A new job (in most cases)

 

So since they can’t switch plans on a whim, it’s more important than ever that they have a clear idea of what their coverage will include before they sign up.

 

Note: These definitions were adapted from the ACA site. Visit here for more terms you might want to add to your own cheat sheet.




Seven Things Even The Smartest College Grad Might Not Know About The Workplace

It’s hard to remember back to your first job, but the learning curve can be steep—even for young adults who did very well in college. In fact, today’s newest professionals, Gen Z, tend to feel hesitant about the work environment, with a quarter believing that they will not meet employers’ expectations.

 

Of course, sometimes they just need a clearer picture of what those expectations look like—and often they center on soft skills and other information not taught in class. Remember, none of these suggestions are designed to insinuate that this generation is less tuned into reality—many of them have just never faced these types of situations.

 

Here are some tips you can share (gently) with new employees as they onboard to help make their transition smooth.

 

  1. They’ll need to master various forms of communication.

A little tutorial on communications methods and etiquette can be a smart idea. You should start by going over your social media and email security policies, and then talk about what types of communications are work-appropriate. Does your company encourage texting? Slack? Emojis? It’s not uncommon for this age group not to have used a landline much—house phones seem to be a thing of the past. So spending some time acquainting them with transferring calls or other tasks like that they need to be aware of is important.

 

  1. Work hours are standard.

Although many workplaces are embracing flexibility, it doesn’t meant that new employees can come and go as they please. They might be used to a bit more of a lax standard with their professors, and while many Gen Zers have been budding entrepreneurs, they might not have held a traditional “job.” It’s important to set expectations straight by covering the absence and tardiness policy—whatever yours happens to be—with them.

 

  1. They won’t be graded on every assignment, and they might have to ask for input.

Many students crave the reinforcement that came with receiving a grade on every paper they turned in and report they made. But the workplace isn’t always like that; although good managers give frequent feedback, often it’s not constantly top of mind, so it’s up to an employee to speak up and ask for advice or pointers.

 

  1. Their benefits are an important part of their compensation.

Most recent college grads have been on their parents’ benefit plans until now and might not realize how important it is to understand what benefits are offered and how they should take advantage of them. Many might be bewildered by the many options for healthcare plans, co-pays and the like so be sure to give them plenty of information to answer their questions.

It’s also wise to remind them that benefits account for roughly 30 percent of their compensation, so they don’t want to squander that.

 

  1. Gently remind them that their parents aren’t part of workplace decisions.

It seems hard to believe, but “helicopter parents” are definitely a thing, and some HR folks report that they don’t necessarily “land their aircraft” when their child reaches the work world. Some companies are embracing it with a “Take Your Parent To Work Day,” but in general your new employee’s parents shouldn’t be providing input. There’s hopefully no reason to have to bring this up, but it’s something to keep in mind if a new team member seems openly involved in speaking with their parents throughout the recruiting process.

 

  1. Let them know there are resources for different issues.

Explain why they want to take advantage of all benefits; for example few can expect to need disability insurance, and yet statistics show that more than a quarter of 20 year-olds will one day be out of work for more than a year due to a disability. Many of this generation are also facing mental health concerns—a growing problem on college campuses. The good news is that treatment and diagnosis is increasing; that means more students are seeking help and will need support in the workplace as well.

 

  1. Stress the importance of financial wellness.

Now is the time that Gen Z can set themselves up for a lifetime of positive financial decisions. Talk to them about the importance of saving for retirement—using the illustration of compounding interest. One scenario that’s sure to grab their attention explains that you can reach a $1 million retirement account with far less of your own savings the earlier you start. For example, if you start at age 20, you need only save $319 per month, an amount that roughly doubles to $613 if you wait until age 30 and then skyrockets to $2,831 per month if you wait until age 50. Financial author Ron Lieber calls a similar chart the one that “changed his life.”

Talking to them about making smart financial choices now as part of their benefits package can be a gift that keeps on giving.

 

 

As the workplace continues to evolve with several generations integrating, HR can play a role in helping the new kids on the block feel supported.




Ready for Open Enrollment Season? Three Steps To Getting In Shape for a Great Season

For HR folks, the fall is sort of like their own version of the retail holiday season or the big football final…that’s because it’s open enrollment, the time when employees are able to make major changes to their benefits plans without penalties.

And just like retailers start planning their holiday promotions early, so should the HR team begin planning how they will communicate both the existence of open enrollment and what it means to their team.

Here’s how to make the open enrollment period smooth for you and beneficial for your employees.

 

  1. Finalize your options.

Chances are good that you have already been working on determining what benefits you will be offering and the rate at which you will cover them. For example, maybe this is the year you add a wellness benefit or pet insurance. You also want to make sure you have a robust slate of health choices that might include dental, vision, and alternative medicine; as well as insurance, such as life and short-term and long-term disability.

With employment rates continuing to be high, benefits are just one additional way that you can strengthen your position in attracting and retaining employees.

 

  1. Create your communications material.

Even if you have the most admirable benefits plan in the world, it won’t help if your employees don’t know or understand what’s available to them—and one survey found that one-third of them do not!

From co-pays to premiums, the insurance world can be full of unfamiliar terms. Take health insurance—many employees can’t explain how a high-deductible plan might improve their financial situation. And many employees might never take the time to recognize what benefits are available to them. That’s why communication is vital during this time. Here are some pieces you should create:

  • A cheat sheet for common insurance terms: This would be an at-a-glance explanation of what all the terms mean, with examples of how they work in the real world. So, you could give a couple of explanations of how a high-deductible plan would play out for someone who uses little healthcare, compared to someone who has an ongoing health condition.

 

  • A summary of new insurance offerings: Finally offering massage therapy or financial wellness counseling? This is the time to tout the new benefits you’ll be offering to get employees excited about the package your workplace provides.

 

  • An explanation of existing offerings: During onboarding, most HR teams make a point to cover the benefit packages. But when employees are being bombarded with so much new information, they might not take the time to really dig in and find out what’s being offered and how they can take advantage of it. Open enrollment is the ideal time to refresh their memory on specifics. They might just end up with a renewed sense of satisfaction, just because you’re more thoroughly communicating what already exists.

 

  • A summary of total compensation (benefits + salary): Many employees don’t realize the value of their benefits package—estimated at 30% as most HR professionals know—but that disconnect means that they might feel underpaid if they don’t include these perks in their total compensation scenario. So depending on your bandwidth, it can be incredibly powerful to show exactly how much the company is kicking in, in terms of premium cost sharing, retirement program matches, disability insurance, and other programs you offer.

 

  1. Use multiple communication vehicles.

Gone are the days when HR could send out a big fat packet and hope/expect that everyone would read it. Today’s employees are used to getting their information in multiple ways. But the good news is that it doesn’t necessarily mean a ton more work for you; it just means thinking of creative ways to repackage the existing elements. The best way to make sure your communications vehicles hit their target market is through a strategy you can call COPE: Create once, publish everywhere. Some suggestions for broadcasting the materials you’ve created include:

  • Emails that drive them to your intranet, where materials reside online
  • A video campaign where you cover one type of benefit at a time and send the links to employees to watch at their leisure
  • A webinar where you present the information and they can send in real-time questions, with the option to replay later
  • A town hall style meeting where you can present and answer questions (done virtually if needed, depending on if you have a distributed workforce)
  • A drip campaign that supplements each of these by “teasing” what’s coming and meeting the need for “snackable” content that employees can consume quickly, then come back for more

 

As open enrollment season approaches, now is the time to prepare for your busy period. The great news is that it will wrap up just in time for you to enjoy the holidays.




What Employees Need to Know About Disability Insurance?

Employers are offering more and more voluntary benefits—and workers want these benefits. A 2017 study showed that nearly one third of eligible employees were signing up for voluntary offerings (that’s a higher participation rate than in earlier years). 

Amy Hollis is the national leader of voluntary benefits for HR consultancy Willis Towers Watson. She recently spoke to Workforce about their recent survey. It shows that 70 percent of employers claim voluntary benefits will be an important part of their value proposition in coming years. “Companies are using voluntary benefits to enrich their offerings without additional cost,” she said.

While there is a win-win element to this—it’s a good economic choice for both employers and employees—the story finishes with a stark warning. Rob Shestack, chairman and CEO of the Voluntary Benefits Association in Philadelphia says that HR teams need to be ready to educate. “The most frustrating thing is when HR makes the effort to provide these programs then does passive enrollment,” he says. “It’s like saying you don’t care if people use them or not.”

When it comes to disability insurance, education is that much more important. James Reid of CDA member company MetLife argues something similar in a story in Benefit News:While employees have a general idea of the benefits they use most often (medical, dental or vision), they don’t always grasp the value or need for some of the other benefits which may be available to them (disability or accident insurance, for example).”

Disability insurance is one of the most critical forms of coverage for working Americans—and one of most overlooked. Part of the problem is that people simply don’t understand how relevant it is for modern life

Here are five questions you can ask as a framework for understanding what disability insurance is: 

1. What Does Disability Mean in This Context?

Many people hear the word disability and assume it only means catastrophic health issues. In fact, disability can refer to a broken leg from a skiing accident, a pulled back while cleaning out your garage, a cancer diagnosis, or a pregnancy that can put an employee out of work for days, weeks, or months at a time.

Share the five most common reasons that keep people out of work for long periods: Pain in the back and neck, cancer, complications from pregnancy, and mental health issues all rank before accidental injuries, which many assume is the leading cause of disability. You can also share infographics.

2. Statistically Speaking, What are the Chances of Becoming Disabled?

Eighty percent of us live with optimism bias. That’s to say we don’t have a realistic understanding of the risk of becoming ill or injured. This is particularly at work with the younger generations who have grown up with some of the most supportive parents in modern history.

These are the numbers: According to the Social Security Administration, more than one in four of today’s 20-year-olds will be out of work for a year or more for a variety of reasons before they reach normal retirement age. This includes common health conditions such as knee, shoulder, or back injuries, cancer, heart problems, or depression.

Add to that the fact that nearly six percent of workers every year will experience a short-term disability due to illness, injury, or pregnancy. Three-quarters of these claims last up to two and a half months, and the rest can last for up to six months or a year.

3. How Would You Pay Your Bills?

Ask rhetorical questions as you educate. For example, will an employee be able to pay their monthly expenses? These are things like a mortgage or a phone bill.  Will they be able to pay their health insurance or retirement plans should a pregnancy, illness, or injury take them out of work for a few days, weeks, or more? This is about laying the foundations for their long-term financial stability.  

Data from the Federal Reserve shows that 40 percent of Americans do not have enough savings to pay for an unexpected $400 bill. Disability insurance pays a portion of someone’s salary when they need to miss work due to an illness, injury, or having a baby. For those who are single, disability insurance is the second most important insurance they can carry after health insurance. And if employees have a family that depends upon them, this insurance gives them an income stream if they need to leave work.

4. Workers’ Comp and SSDI: What Do They Cover?

Employees need a realistic understanding of the various safety nets that are in place should they become ill or injured. With this knowledge, they can make an informed decision.

  • Workers’ Compensation: Workers’ Comp only applies to accidents done on the worksite. Disabling illnesses or injuries are much more likely to be non-occupational in origin, which would rule out that coverage.
  • Social Security Disability Insurance (SSDI): The Social Security Administration provides Social Security disability benefits for eligible individuals who have a disability that lasts for one year or longer. Many applicants are denied coverage.  This can be due to a lack of work history, medical evidence, and the temporary nature of their condition. The could even get denied because they may still be able to work outside of their profession. There are three important things to bear in mind: 1) workers who become disabled off-the-job won’t always qualify for SSDI, 2) they can face average wait times of 600 days for a hearing (that’s nearly two years), and 3) if they do eventually get benefits, the monthly amount (averaging around $1,200, based on the most recent data) probably isn’t enough to help them keep up with their ongoing expenses.  

5. Starting a Family? What is Your Plan for Maternity Leave?

If your company doesn’t offer paid maternity leave, this is an important point to raise with women in the workforce. Disability insurance is a critical benefit for many new mothers in the U.S. Indeed, pregnancy is the most common cause of short-term disability (STD) claims. Plans typically cover two weeks before and six weeks after a routine pregnancy. 

Here’s an important note: One of the major differences between pregnancy and other types of disability claims is predictability. For a healthy woman, purchasing coverage through their workplace in anticipation of a planned pregnancy can be a fairly easy transaction. The key is that they buy coverage before they become pregnant. This way there is little risk of underwriting issues or denial of their claim due to a pre-existing condition limitation. (Read more on this here.)

By asking these questions, you can broaden the minds of your employees. At the same time, you give them the larger context of how disability insurance works in real life. That way, it isn’t just vague words on a list in a company intranet.  

For more resources please review our website www.disabilitycanhappen.org.