by Jim Taylor | Apr 10, 2023 | Employee Benefits
Employee benefits packages are designed to help families manage their finances and protect their long-term economic health. As part of the worker’s overall compensation, benefits typically include health insurance, life insurance, disability insurance, retirement savings plans, and other types of coverage.
In the modern workplace, family benefits are becoming increasingly important to employees. With more people working remotely, and many unable to take traditional family vacations due to the pandemic among other reasons, it’s no surprise that employees are looking for ways to keep their families connected and supported.
Employees Increasingly Value Family-Friendly Benefits
Family-friendly benefits are becoming more and more attractive to employees. They provide employees with increased flexibility in juggling work life and home life. This encourages peace of mind and a sense of security when it comes to their family’s future that allows them to more fully focus on their job-related obligations when they are at work.
Companies that offer flexible work schedules, parental leave policies, and other family-friendly benefits have an advantage in attracting and retaining top talent.
In addition, providing these types of benefits can help improve employee morale and productivity. As such, it is essential for employers to understand the value of family benefits in order to stay competitive in today’s job market.
Unfortunately, these benefits are often the first to be cut when it comes to reducing expenses in the workplace.
Problems in the Workplace
Employers and workers alike feel the pressure due to the lack of economic stability. During times of economic unease, companies will often take a look at their employee benefits as a way to reduce costs while protecting jobs and preserving wages. Although this can seem to be the lesser of two evils, it can also be a substantial source of fear and anxiety for many workers.
Plus, after the Supreme Court’s decision to overturn Roe v. Wade brought reproductive rights into question, workers have increasingly been concerned about their access to reproductive health benefits. In fact, nearly 41% of employees feel their employers could do more, with almost one in ten considering changing jobs for one with better benefits.
These conflicting objectives may make reductions to family benefits appealing to employers while they directly oppose the preference of the workers. Feeling valued and appreciated as a member of the team is essential for people to feel secure and comfortable with the stability of their jobs.
When an individual’s employee benefits are secure and they know they can expect reasonable compensation in the future, their satisfaction increases along with their motivation. This leads to a heightened sense of responsibility for their job and a higher level of performance that is worthy of note. Additionally, it also increases their loyalty to the company.
Basic Family Benefits Package
Many employers offer their employees a basic family benefits package. Unfortunately, it usually does the minimum toward caring for the needs of their workers and their families.
Most packages include the following:
- Family health benefits parity globally
- Fertility and adoption support
- Maternity and parenting support
- Postpartum and pediatric care
- Reproductive health care
Unfortunately, there is a growing disparity between the family benefits packages offered by employers and the ones wanted by employees. This gap often leads to a lack of job satisfaction among employees, which can lead to decreased productivity and higher turnover rates.
The Disparity in Family Benefits
Studies show that nearly 2/3 of employees have either left or considered leaving a job without decent family benefits. Furthermore, an even larger percentage have had to miss work or lose opportunities because of concerns related to their family’s health.
These statistics demonstrate the importance of providing adequate family benefits in the workplace. Evidently, family benefits policies are prized more highly than ever.
In addition to the typical benefits offered by the majority of U.S. companies, workers have identified the following as areas where the packages offered by their companies often fall short.
- Caregiver support
- Paid parental and caregiver leave
- Preconception support
- Reproductive health support
Fortunately, there are solutions.
Possible Solution
In order to bridge this gap, employers must take into account the needs of their employees when creating family benefits packages. They should consider things like childcare options, flexible work hours, family health insurance coverage, and other benefits that could help improve employee morale and well-being.
This could begin with a dialogue with employees encouraging them to identify where they feel the need most greatly. Assess which areas would provide the most improvement in the lives of the greatest number of employees. Communication ensures they feel part of the solution. Their needs are being met.
By taking these steps, employers can ensure that they are providing fair and equitable family benefits packages that meet the needs of both themselves and their employees.
by Jim Taylor | Mar 31, 2023 | Compliance, Human Resources
As the nature of the contemporary workplace evolves, your policies must reflect the changing times. With the rise of remote work, digital tools, and new regulations, there are many key changes to consider for your 2023 employee handbook.
An employee handbook is an essential tool for any organization. It sets out the expectations, terms, and conditions of employment while reducing potential legal risks. This document should not be overlooked if you want to ensure compliance with government regulations.
No matter how comprehensive your current employee handbook is, it can become outdated quickly due to changes in the law and the world. Therefore, employers should ensure that their handbook covers all the essential policies, as well as any new developments in their workplace. This will guarantee your employee handbook is up-to-date and compliant in 2023.
Changes in Work Time Policies
The COVID-19 pandemic has triggered a dramatic shift in workplace dynamics. No longer satisfied with the traditional 9-to-5 workday model, modern employees are increasingly opting for flexible working hours. This has made way for the emergence of remote work, hybrid work, and flexible work hours.
To ensure the successful management of these new work structures, businesses need to implement sound policies. This would include key points, such as, but not limited to, the following:
- Which employees are eligible
- Attendance expectations
- How time off and breaks are tracked
- How overtime is compensated
Having such a policy in place ensures everyone is on the same page and enables operations to remain smooth.
Communicable Disease Policies
During the Covid 19 pandemic, many companies introduced protocols to ensure the safety and well-being of their employees. These included rules around staying home if unwell, wearing masks, getting vaccinated, maintaining social distancing, and having regular tests conducted.
Companies should reevaluate their existing policies and update them so that they are not only applicable to the Covid pandemic but any potential future communicable disease or virus. This will help ensure that businesses are well-equipped to handle such occurrences with minimal disruption.
Diversity, Equity, and Inclusion
Incorporating a Diversity, Equity, and Inclusion (DEI) mission statement in the employee handbook sends a strong statement to employees that the company is committed to DEI. If that seems too bold, consider using the word “employee” and “they/them” throughout the handbook instead of gender-specific pronouns.
Pay close attention to any company leave policies and make sure they are not exclusive. Providing additional medical benefits when an employee gives birth may lead to discrimination cases from other staff members who have medical issues unrelated to childbirth that require them to miss work.
Offering a paid medical leave benefit regardless of the reason is not only more equitable but also provides cover for more scenarios. This should be prioritized over only providing it for childbirth-related issues.
Progressively, companies are shifting from “maternity” leave to “parental” or “caregiver” leave for bonding with a child. This type of benefit should also be available to families who adopt, use surrogacy, or foster care when growing their family- not just those who experience childbirth.
Security and Privacy Protection Policies
To ensure a safe and secure work environment, employers should regularly update their security policies and procedures for both in-office and remote workers. They should also update their social media policies to further protect confidential information and address any potential privacy concerns.
Ensure Employee Handbook Compliance
It’s no good having an employee handbook if employees don’t know what it is or how to access it. To make sure everyone knows where to find the handbook, you should have an electronic version with embedded hyperlinks for swift navigation.
These can include links for applying for benefits, emails for contacts, and links to other related policies. Rather than relying on hardcopy employee handbooks, organizations now have the ability to keep policies up-to-date electronically. This makes it easier for them to make amendments quickly, without having to print out and distribute new versions.
It is essential to review and update employee handbooks with legal counsel every year in order to stay up to date with the ever-evolving work environment, pertinent laws and regulations, and also promote fairness and inclusivity throughout the organization. This process helps establish a strong company culture.
by Jim Taylor | Jan 17, 2023 | Compliance
On December 31st, 2022, the Consolidated Appropriations Act of 2023 was signed into law. This is a sweeping piece of legislation that provides funding for various federal departments and agencies and includes many changes to employee benefit programs. These changes expand unemployment benefits, as well as add stimulus payments and other provisions that will affect the lives of millions of Americans.
Here are the Employment and Benefits highlights.
New Non-Compete Agreement Regulations
Although noncompete agreements have become increasingly common in the workplace, recent changes to regulations have made it more difficult for employers to enforce these agreements. The proposed regulation would deem the use of noncompete clauses in an employment contract by employers as an unfair practice in terms of competition. If the proposed rule becomes final, it would extend to paid and unpaid workers including consultants and independent contractors.
Furthermore, employers would need to notify their employees that the non-compete provisions included in their current agreements would now be unenforceable. There are still several steps that must be completed before the rule becomes binding.
Although the new regulation doesn’t explicitly address similar contractual commitments like nondisclosure agreements, they might still be considered unlawful if they produce effects similar to those of noncompetes.
Pregnant Workers Fairness Act in CAA 2023
The Pregnant Workers Fairness Act (PWFA) was designed to protect the rights of pregnant workers by requiring employers to make reasonable accommodations for pregnant workers, such as providing additional breaks or light-duty tasks.
It also provides protections (similar to those found in the Americans with Disabilities Act for disabled employees) that prohibit employers from discriminating against pregnant workers, denying them job opportunities or promotions, and requiring them to take unpaid leave. The PWFA ensures that pregnant workers have the same rights and protections as all other employees.
It works to ensure that employers reasonably accommodate employees for circumstances like “pregnancy, childbirth, and related medical conditions.”
Pump Relief for Nursing Mothers Act
This CAA 2023 provision expands on the 2019 Pump Relief for Nursing Mothers Act to ensure they have access to private and comfortable spaces in which to express breast milk during their workday. The law requires employers to provide reasonable break time and suitable private space, other than a bathroom, for nursing mothers to express milk.
This law also protects against discrimination and retaliation against nursing mothers who choose to take advantage of this benefit and extends the duration from up to one year after the child’s birth to two. The Pump Relief for Nursing Mothers Act is an important step toward creating an equitable workplace environment for all employees.
Additionally, nursing mothers are entitled to compensation for any time they spend working while expressing milk.
Telemedicine and HSA/HDHP Relief Under CAA 2023
CAA 2023 permits a short-term extension of Covid-era regulations that permit individuals to avail themselves of pre-deductible telemedicine benefits even if they are making HSA contributions.
Telemedicine has become an increasingly popular way for people to access medical care without having to leave their homes. Health Savings Accounts (HSAs) and High Deductible Health Plans (HDHPs) are becoming more popular among employers as a way to provide relief from rising healthcare costs. HSAs allow individuals to set aside pre-tax money for qualified medical expenses while HDHPs offer lower premiums in exchange for higher deductibles and out-of-pocket costs.
Telemedicine can be used in conjunction with these plans to help reduce costs associated with traditional office visits while still providing quality care. CAA 2023 temporarily eliminates the need for people to disqualify themselves from HSA contributions to receive these benefits.
Prescription Drug Reporting Relief
Prescription drug reporting relief provides financial relief for the enforcement of the system of laws and regulations that ensures individuals are receiving the right medication at the right time and in the right dosage, while also providing safeguards against fraudulent activity. CAA 2023 provided additional clarifications and flexibilities for the 2020 and 2021 calendar year reports including the removal of certain previous restrictions.
To address the confusion the new reporting requirements caused, federal agencies have asserted that group health plans using a reasonable interpretation of the rules in good faith will not be penalized for errors made in their 2020 and 2021 reports.
CAA 2023 MHPAEA Update
The CAA 2023 update to the Mental Health Parity and Addiction Equity Act of 2008 (MHPAEA) to help fund state enforcement of comparative analyses requirements of nonquantitative treatment limitations (NQTLs). MHPAEA seeks to ensure that mental health and substance use disorder services are treated similarly to medical and surgical services.
The CAA 2023 MHPAEA updated this by requiring insurance companies to provide more coverage for mental health and substance use disorder services.
In Conclusion
The Consolidated Appropriations Act of 2023 has created several changes in the way employers provide benefits to their employees. This act is sure to have far-reaching implications for employers and employees alike as it affects everything from healthcare coverage to retirement options. Employers should understand how this act will impact employee benefits so that they can make informed decisions about their future.
by Jim Taylor | Dec 12, 2022 | Human Resources
Although most business professionals do prepare for future economic hard times, it is vital for HR to aggressively plan for the potential impacts of this uncertainty on their employees and, therefore, the company. The COVID-19 pandemic and ensuing global economic downturn have put the financial condition of the U.S. in a state of turbulence.
As experts attempt to anticipate whether or not the country can expect an official recession, people are struggling to afford the essentials. In addition to the nearly 10% price hike in necessities like food, fuel, and housing, employers are also seeing a substantial increase in healthcare costs. This rise has caused some corporations to consider methods to reduce expenses including tightening budgets and layoffs. The additional pressure on businesses to cut costs means that HR departments need to be more flexible and creative when it comes to helping their employees plan for economic uncertainty.
Here are four primary methods HR and benefits professionals can use to improve their employees’ financial well-being during uncertain economic times.
Communication and Transparency
HR departments are not just about hiring, firing, and benefits. They also provide safe spaces for employees to voice their concerns and get practical advice from experts in the field. With the global economy slowly recovering, HR departments need to help employees adjust their financial plans accordingly to avoid future problems.
Communication and transparency are critical for a business to thrive in an uncertain economy. Companies should have clear strategies to outline how they will communicate to their employees about important decisions involving their benefits, as well as the stability of the company. It should also have a plan for what to do in the event of a crisis.
Regular updates are often welcome, as they encourage employees to feel they are integral and valued members of the workplace. Open communication also allows them to make necessary decisions regarding their financial well-being in real-time.
Help Managers Keep an Eye on the Big Picture
The role of an HR leader is to preserve the security of the employees, as well as the company. Although significant layoffs might seem to alleviate budgetary woes, they can result in long-term instability. They decrease the amount of institutional experience at the business, but they also destroy employee morale making it difficult to rebuild your workforce when the economy improves.
In fact, many companies that slashed their workforce during the recession in 2008 saw declining profitability. Another option is to offer programs like accident and illness insurance, identity theft protection, childcare benefits, pet insurance, etc. These provide value to the workers without really increasing company costs.
By keeping an eye on the big picture, managers can better tolerate the natural ebb and flow of the economy.
Identify and Address Employee Mental Health Concerns
Although employee mental health is known to be affected by burnout, research indicates that over 40% of U.S. citizens are also negatively impacted by financial worries. This can result in a feeling of anxiety and overwhelm. Stress from money problems decreases workplace motivation and satisfaction, eventually leading to reduced levels of attendance and productivity. Plus, those individuals with existing financial issues will be even more vulnerable in times of economic uncertainty.
Companies should survey their employees to remain aware of their evolving priorities. They must prioritize their mental health and address economic concerns while providing them with a safe environment to voice the challenges they might be facing due to financial concerns.
HR leaders can further build a community of encouragement including resource groups, recognition programs, and rewards.
Provide Resources to Promote Financial Literacy and Improve Retention
To prevent problems in productivity and improve employee satisfaction, companies can provide benefits that include money management coaching and financial planning workshops. Studies show that nearly 80% of workers dealing with money problems find themselves distracted while on the job. This can lead to a dip in productivity that results in further feelings of overwhelm and job dissatisfaction.
A financial planning program that provides access to financial advisors and education can help team members set realistic targets and save for the future at every stage of their careers. By connecting employees to resources, such as qualified coaches and peer groups, HR leaders can help employees navigate these tough times.
by Jim Taylor | Nov 16, 2022 | Business Insurance
In this ever-changing landscape of technological advances, it can be difficult to keep up-to-date on everything. However, when regarding cyber security, being knowledgeable about the latest protection is imperative. This can be a daunting task for any business. Larger corporations often have entire departments or outsourced workers to protect their online presence.
Because of these factors, a large portion of cyber attacks are focused on emerging businesses. More than 43% of cyber attacks are targeting growing businesses and the owners do not have the luxury of a dedicated tech team to handle this and find themselves navigating the world of cyber security on their own.
While most of these business owners are concerned about the threat of such attacks, education on the issue is lacking. There are a number of measures these owners could take and many recourses available. The issue seems to be the lack of knowledge about these measures businesses should take on proactively.
Cyber Insurance may not be widely known, but it is a viable option for any business. The concept of Cyber Liability Insurance recognizes the risks of online markets and breaches within the systems. When you leverage a Cyber Liability policy, your insurer focuses on covering the damage resulting from such an attack. A typical policy would assist with:
- Informing customers when a breach in the system has occurred
- Recovering such compromised data of the business and customers
- Restoring the computer systems and security programs
Many providers also offer assistance for any monetary losses that the businesses or customers may have suffered as the result of a cyber attack.
Aside from the loss of funds and the breach of personal information, these attacks can further damage a company. The trust a customer has in the business can be demolished with such a cyber attack. The reputation and integrity of the company can be badly damaged and can cost further revenue in the future.
The first line of defense for these companies is programs and ransomware designed to protect them from such attacks. However, the better the programs become, the craftier hackers will become. While these systems provide the first line of defense and insurance acts as a safety net should the worst occur, there are further measures a business could take to ensure their information remain safe. The FCC provides a comprehensive list of additional steps an owner can take to keep these hackers at bay including:
- Providing firewall security for your internet
- Making backup copies of important data and information
- Keeping employees informed on safe cyber practices
- Limiting who can install software on computers
The knowledge and education of these tools are pivotal to maintaining a company’s security in the ever-changing technological landscape. Most importantly, working with a trusted business insurance provider can ensure your business has the right Cyber Liability coverage to meet your needs.
