Employee benefit plans are continually evolving as the needs, desires, and majority age of the working population shift. In addition to these factors, the fluctuating state of our economy and the healthcare reform are driving employers to find creative ways to continue to provide, or enhance, benefits while still cutting costs. According to a survey conducted by the SHRM Foundation, 72% of HR professionals reported that the benefits offerings at their organization have been affected in some way due to the Post-Recesslon Economy.At minimum, an annual review, as well as solid uiding principles of the benefit program can assist employers in staying in line with, or even ahead, of trends.
While the impact of the economy and the new healthcare legislation has created considerable challenge, It Is also creating opportunities for employers to think outside the box and begin to revolutionize traditional benefit programs. There is a trend, while not novel, that offers a health savings account as one of the options In a cafeteria plan.This Is a move away from, what has been considered ideal for so many years, the traditional co-pay, coinsurance, and annual eductible cafeteria selections with varying levels of coverage and employee premium deductions. The utilization of an employer, employee, or combination thereof, funded health reimbursement account (HRA) will help individuals begin to realize the true cost of medical care. My current organization is testing, for 2011; an employer funded HRA.
One objective of this type of plan Is to create a more informed consumer. understanding the cost of health coverage can shift thinking and could result in more selective utilization.While it isnt meant for illnesses to go ntreated, we also offer a strong Inltlatlve toward wellness programs. Along with the healthcare reform legislation that preventive care is covered at 100%, this will also help ensure that employees are visiting physicians as part of an annual physical, mammogram.
and other wellness visits. Through education, Information, and wellness programs, our organization is working toward creating a healthier workforce. Organizational focus, dedication, and persistence toward these initiatives are critical In order to receive the desired outcome.In my organization we offer nsite gymnasiums, discount health club memberships, free health coaching for weight loss, stress management, and smoking cessation that include prescriptions and a co-pay. As part of our benefit program.
we request participation In an annual health survey. Participation, while not required, reduces the amount of the annual deductible, but is required before Health Reimbursement funds are deposited into an employee account. With the incentives, participation in the annual survey Is at or above 95%. This survey program is outsourced by an independent 3rd party, and individual results are not shared with us.However, we do receive general reports that outline some of the high risks for our employee population.
Knowing what health issues are affecting our workforce most has driven the benefit program as it exists today. I'm not sure if this is a trend with many employers, but it has been assisted us In continuing to maintain, or even enhance our benefits, while the cost of providing them continues to rise. There is also a growing use of Advocacy Programs as it applies to the ever changing employer benefit programs. By outsourcing a third administrative burden from the employer's benefits and HR administrators.We have medical billing and health professionals that aid our employees navigate the great unknown of the healthcare industry. The use of professionals in the role of benefit advisement can save employees, as well as employers, a lot of time and money.
While health benefits will always be important to the workforce, as baby boomers begin to retire, and generations X and Y become a larger part of the workforce, there should be a continual examination of other employer benefit options to ensure they still provide value. What may work with the majority today, may not in ten years.The changing dynamic of the working population should drive the total benefit package, and will also assist employers in the competitive race for finding, and retaining, talent. Over the last two years, the economy has driven many organizations to make temporary changes; such as reducing or suspending 401 k matching, elimination of merit or cost of living increases, and reducing the workweek. Many organizations, including mine, shut down facilities and began laying off workers.
In addition to layoffs, we also reduced the work-week for some hourly employees.While some truggled financially with the reduction, others found it had a positive effect and the additional time off was welcome. In either case, it was better than losing their Job. In addition to a wage freeze since 2008, we also offered what we called Vacation Buyout.
It was a program that allowed employees to buy additional vacation time. It is known that quality of life, and not always earnings that motivate the younger workforce. We had about 25% of the employees participate in the buyout program and resulted in a significant savings for the organization.Of that 25%, over 90% were enerations X and Y.
Due to the varying types of benefits offered by organizations today, a great deal of time should be spent ensuring employees are aware of them. We have found that a significant portion of our population retain about 10% of what they learn during orientation, they do not closely read the benefits program, and simply glaze over much of the benefit literature and material available at the Employee Self-Service website. It could be information overload, but this results in lack of full utilization of available benefits.Repetition and several methods of ommunication should be continually used.
Email, post, posters, flyers, and postcards may increase awareness and participation. Only through awareness can an organization properly analyze participation and the effectiveness of its benefit offerings, therefore communication is essential. Also, for a benefit program to be sustainable it should be organic. In order to keep up with trends, manage cost, and continue to provide value, HR benefit professionals should continue to evaluate the program, and not be entrenched in the traditional benefit programs of the past.
