Hot Topics in Total Rewards

AUTHOR Samantha Liss | PUBLISHED Sept. 11, 2020

Dive Brief:

• A fourth of adults with employer-sponsored plans are underinsured, according to Commonwealth Fund's latest biennial report assessing the health insurance landscape. Underinsurance is a potential signal that some adults may be unable to pay their medical bills, posing possible problems for providers and hospitals who prize patients with commercial coverage.
• Nearly half (43.4%) of working-age adults in the U.S. were inadequately insured in the first half of 2020, on par with figures from Commonwealth's previous report from 2018. Those adults were either uninsured for a period of time during the past year, experienced a coverage gap or had high out-of-pocket costs or deductibles relative to their income.
• The share of privately insured adults with deductibles over $1,000 has more than doubled since 2010 and has outpaced income, putting a strain on workers, Commonwealth found.

Dive Insight:

The current public health crisis only threatens to exacerbate the growth in un- and underinsurance, as the economy is burdened by the novel coronavirus and its effects.

"Coverage insecurity will leave people with mounting medical debt, as well as significant financial barriers to getting the health care they need to survive the pandemic and lead healthy and productive lives," according to the report, which is based on a survey of more than 4,000 adults between the ages of 19 and 64. 

People without adequate coverage often delay care and filling medications, according to the study. That poses additional problems for the healthcare system as delayed care can lead to deteriorating (and likely more expensive) health conditions.

Initially, it was feared that as millions of Americans lost their jobs they too would lose their connection to employer-sponsored coverage. The Kaiser Family Foundation estimated in May that as many as 27 million Americans lost coverage as a result of job losses that were spurred by the pandemic. However, an August Urban Institute report found coverage losses may not have been as drastic as initially feared, despite the record number of lost jobs. 

Yet even with coverage, affordability remains a key problem.

The Commonwealth report found one-third of adults reported having a cost-related problem in getting needed healthcare. Unsurprisingly, the highest rates were among those who spent some time uninsured in the past year. But perhaps most concerning was cost-related problems among those with adequate insurance and without any interruptions in coverage throughout the year — most among those with employer plans.

Another pressing issue is the level of high uninsurance among people of color, young adults, workers at small businesses and people with low-incomes.

The authors outline several policies that could help consumers gain comprehensive coverage, including expanding Medicaid in the 12 states that have yet to open the program up to working adults without children and with incomes within 138% of the federal poverty level. Other policies options include enhanced subsidies for marketplace coverage and banning plans not compliant with the Affordable Care Act, plans the Trump administration has expanded under the president's term.

Researchers warned consumers are likely to face dire consequences without some policy action, noting "ongoing policy inaction on insurance coverage combined with the raging pandemic is certain to tip the nation's health care affordability problems into crisis for U.S. households."

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Source: HR Dive

https://www.hrdive.com/news/a-quarter-of-adults-in-employer-plans-are-underinsured-commonwealth-fund-s/584940/

by Tim McElgunn | September 8, 2020

As 2021 open enrollment approaches amid the continuing pandemic, employers are striving to find a difficult balance.

How can you provide the benefits and advice employees deserve and also achieve the needed return on benefits investments?

And its a critical challenge. In multiple surveys, over half of employees say health coverage is the greatest factor in job satisfaction.

And more than three-quarters say the quality and affordability of benefits options influence their engagement and productivity at work.

The COVID-19 crisis is magnifying those challenges and changing what benefits employees need at an incredible speed. A recent research study highlights those pressures:

This is the background as we enter the final months of 2020 and benefits teams continue adjusting plans for a very uncertain 2021.

Here’s a framework you can use to help optimize open enrollment this year.

Building the open enrollment blueprint one question at a time

The issues you’ll face during this year’s open enrollment are going to test your skills and creativity. And one of them is getting leadership to think carefully about those challenges and the choices your organization faces.

They’ll need you to be the calm center of their daily storm of challenges and rely on your expert advice to build the best possible mix of benefits options.

They hope you have all the answers but they absolutely need you to help find the RIGHT questions to ask.

Part of your job is to keep pulling them back to data-driven decision-making.

Here are some questions that you’ll want to drill down on.

• What are critical requirements versus nice to have?
  • From the employer perspective? From the employee perspective?
• If some attractive options are simply unaffordable in the current business climate, are there less expensive, albeit more limited, alternatives available?
• Should you implement auto-enrollment to ensure a minimum level of participation before the deadline?
• What processes are automated now?
  • What MUST be automated immediately to compensate for the pandemic’s impact on in-person interactions?
  • Can non-critical processes be automated cost-effectively?
• Where does the voluntary benefits discussion fit in the enrollment process?
  • Is your EAP prepared for an increase in emotional and behavioral health demands?
  • Are there third party apps or other services, such as financial management, that can be included at little or no upfront cost?
• Are you prepared to launch and manage a comprehensive digital communication campaign?
  • What needs to be different this year? Cadence? Frequency, reminders?
• Will any/all of these changes be permanent?

As you ask these questions, challenge any easy answers and get leadership and your team to dig a little deeper.

And hold back some of your advice until you are satisfied leadership really knows what they want to prioritize.

As 2021 open enrollment approaches, how can employers provide the benefits and advice employees deserve and also achieve needed benefits ROI?

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Source: HRMorning

https://www.hrmorning.com/articles/open-enrollment-2021/

AUTHOR: Kyle Addy | PUBLISHED: Sept. 3, 2020

Even in a virtual environment, employers can still deliver comprehensive communication about benefits and personalized enrollment support, writes Kyle Addy of Colonial Life.

Is it the chicken or the egg?

Employees who admit they don't understand their workplace benefits "at all" plan to spend the least time learning about them before their enrollment, according to a recent Colonial Life survey of 1,200 U.S. adults.

Or maybe because these employees will spend less than an hour on their benefits enrollment this year, they're poorly educated on the important and valuable options available to them at the workplace.

Either way, the survey findings should be cause for concern for human resources professionals charged with implementing an effective benefits enrollment. And the research shows the problem is widespread: Nearly 3 in 4 employees rush through their annual enrollments each year, with 41% spending less than 30 minutes considering their workplace benefits. An additional 32% spend just 30 to 60 minutes learning about their benefits choices. That means the majority of employees spend an hour or less on decisions that can have a significant financial impact on them and their families for a year or longer.Read Now

This dynamic also can have a negative impact on your business, because employees who don't understand their benefits participate at lower levels, engage less strongly with the company, and don't value the considerable investment you're making in the benefits package.

As fall benefits enrollment season approaches, it's critical to map out a strategy to effectively communicate with employees and help them select and enroll in the benefits they need. This vital task will be more challenging than ever this year, thanks to the pandemic and the resulting employee stress, distraction and geographic isolation.

Drive engagement with communication and personal support

Despite the daily reminders of the importance of protecting our physical, emotional and financial health, many workers seem unwilling to set aside the time to understand their needs and options. 

The good news is you can help employees become more engaged in their benefits program by providing both comprehensive communication about benefits options before the enrollment and opportunities for employees to get personalized support during enrollment — even in a virtual environment.

More good news: Delivering effective benefits education and enrollment virtually should be easier this year, since we've all learned to accomplish more things remotely, from staff meetings to doctor visits. In fact, another recent survey shows many employers are taking those lessons and applying them to this year's benefits enrollment. The number of employers who plan to offer employees the opportunity to enroll via videoconferencing or cobrowsing with a benefits counselor nearly doubled, from 23% in 2019 to 42% this year. In addition, 22% will offer individualized, real-time support through telephone enrollments. 

Those virtual "high touch" enrollment methods will replace in-person meetings for many employers: Only about a third will enroll in person this year, compared to nearly half a year ago. The number of employers planning to use online self-service enrollment increased a bit from 47% to 54%.

These trends are likely to continue long term, as more benefits providers and enrollment companies develop technology solutions to deliver a personalized experience for employees in multiple locations and situations. The ideal solution in today's environment may be using a package of high-tech solutions that still provide high (virtual) touch capabilities to create a more cohesive, personalized enrollment strategy for your employees.

Some of the solutions to consider include:

• Virtual meeting technology — Web-based meeting tools offer the opportunity for employees to meet with a benefits counselor to better understand their needs, gaps in coverage and the benefits options available to meet those needs, and complete their enrollment.
• Cobrowsing capabilities — This technology allows an employee and a benefits counselor to review information together, then for the benefits rep to hand over control to the employee to create a secure login and sign insurance applications.
• Call center resources — This is a convenient option for employees without good internet access or who prefer a phone call to an onscreen experience.
• Online scheduling — These tools allow employees to schedule a virtual or telephonic one-to-one meeting for the day and time most convenient for them.
• Digital communications — Your employees have unique needs and preferences, so it's important to use a variety of benefits communication methods to reach them when, where and how they like. These can include emails, digital postcards, custom websites and mobile apps, and digital benefits booklets.

You play an important role in ensuring employees have the support and resources they need to educate themselves about their benefits, so they can protect themselves and their families from whatever the future brings. With the right combination of communication and enrollment strategies and tools, you can create a more successful enrollment this fall.

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Source: HR Dive

https://www.hrdive.com/news/how-to-help-employees-get-more-out-of-benefits-enrollment/584669/

DOL Reminds Employers of an Old Obligation with Modern twists: Tracking hours worked

Tuesday, September 1, 2020

An employer’s obligation to track compensable hours of its employees and compensate employees accordingly is not a new concept. Most employers know of that obligation under the federal Fair Labor Standards Act (FLSA). Yet, tracking hours of remote workers has always been a challenge. Recognizing this issue and the need to address modern day technology at this time of increased remote work, the U.S. Department of Labor (DOL) recently issued a field assistance bulletin explaining employers’ obligations for tracking compensable hours worked by non-exempt remote employees. This is the first update to remote worker guidance provided by the DOL since 1961.

What We Need to Know

The DOL explains what time is compensable and breaks the standard into two scenarios: when an employer has actual knowledge of the work performed and when the employer has constructive knowledge. The constructive knowledge guidance incorporates remote employee challenges.

Actual Knowledge of Work Performed

Under the FLSA, an employer must pay for all time that an employee is “suffered or permitted to work.” This means that an employer must pay an employee for all hours the employee is scheduled and/or directed to work, but it also means that an employer must pay for time that an employee is permitted to perform unscheduled work. If an employee performs work outside of the employee’s scheduled hours, the employee still must be compensated for that work, although an employer can discipline an employee for performing work outside of scheduled working hours and prohibit such work going forward. Simply put, if the employer knows that work is being performed, the time must be compensated.

In a remote work scenario, it is more challenging for employers to know when work is or is not being performed by remote employees. Actual knowledge may be derived from employees reporting that they worked extra hours, or it may be obtained through other means, such as a supervisor directing or receiving work outside of an employee’s scheduled work hours. If the employer has actual knowledge that work is being performed, it must have the employee report/record the hours worked and compensate the employee for the time, including any applicable overtime compensation.

Constructive Knowledge of Work Performed

Under the FLSA, employers must also pay for all time they should know is being worked. This should know standard is very important for employers to understand. The DOL guidance explains that this means that employers must use reasonable diligence to determine all hours being worked by their employees. For example, an employer may provide non-exempt employees with a form explaining that no work is to be performed off-the-clock and that if they perform any work outside of their scheduled working hours like responding to emails, texts or phone calls, they must report it using that form. If the employee fails to report the time worked, the employer generally does not have an obligation to investigate further to determine whether any work is being performed off-the-clock.

The DOL explains that the reasonable diligence standard is based on what an employer should know, not on what an employer could know. Acknowledging the difficulty in defining what this means today, given the advances in technology and substantial increase in remote workers, the DOL guidance provides helpful parameters:

“Though an employer may have access to non-payroll records of employees’ activities, such as records showing employees accessing their work-issued electronic devices outside of reported hours, reasonable diligence generally does not require the employer to undertake impractical efforts such as sorting through this information to determine whether its employees worked hours beyond what they reported.”

Applying this Guidance to your Business

The DOL’s guidance, while specific to the FLSA, applies equally under Wisconsin wage and hour law. It is also important to note that, while the DOL’s guidance is favorable to employers, courts may interpret the laws differently. The bottom line is that employers must implement and communicate reasonable procedures for reporting ALL hours worked by remote employees to reduce the risk of wage claims. This also means that employers should not discourage accurate and complete reporting of work hours or tell employees that work performed outside of scheduled working hours will not be compensated.

Employers should examine current remote worker arrangements and ensure robust record keeping systems, communication plans, and clear remote policies and practices that define work expectations are in place. For example, remote worker policies should make clear that employees are obligated to accurately record all time and employers should enforce the requirement.

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Source: National Law Review

https://www.natlawreview.com/article/three-minute-update-dol-reminds-employers-old-obligation-modern-twists-tracking

The fast-casual burger chain will grant payments ranging from $250 to $400

By Thomas Barrabi | Published August 21, 2020

Shake Shack will offer year-end bonuses to its employees as it continues to recover from the coronavirus pandemic, according to multiple reports this week.

The fast-casual burger chain will grant payments ranging from $250 to $400, Nation’s Restaurant News reported. The employee’s position will determine the size of the payment.

"Taking care of our teams has always been a core tenet of Shake Shack - we couldn’t do this without them,” the company said in a statement to the publication.

The year-end bonuses were announced days after Shake Shack ended a 10 percent hazard pay bonus that employees received during the pandemic. Employees were eligible for the premium pay from the end of April until Aug. 19.

Shake Shack said the increased pay program helped to maintain staffing at the height of the pandemic. Aside from the year-end bonuses for all employees, the company said it will be “guaranteeing bonus payments to all managers” in the third and fourth quarter.

Like many restaurant chains, Shake Shack has struggled to generate revenue during the coronavirus pandemic. The company’s same-store sales plunged 49% in the second quarter. Overall revenue plunged nearly 40% to $91.8 million.

The company has stepped up efforts to alter its business in the current climate, announcing plans to open its first-ever drive-thru location in 2021.

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Source: Fox Business

https://www.foxbusiness.com/markets/shake-shack-year-end-bonuses-coronavirus

AUTHOR: Sheryl Estrada | PUBLISHED: Aug. 25, 2020

Dive Brief:

• Salary increases for employees at many companies in the U.S. are on the horizon for 2021, according to the 2020 General Industry Salary Budget Survey conducted by Willis Towers Watson Data Services released Aug. 17. Amid compensation planning, most employers surveyed are expecting "a turn toward normalcy in 2021," the global advisory, broking and solutions company found. 
• About 7% of companies are not planning pay increases in 2021, "down significantly from 14% this year," according to Willis Towers Watson's survey of 1,010 companies conducted mid-May through late-July. Companies surveyed projected the average salary increase next year will be 2.8% for non management, management and exempt employees. However, hourly and nonexempt salaried employees and executives are expected to receive a 2.7% increase. Performance continues to play a major role in salary increases. "Stars" or employees receiving the highest possible rating were granted an average increase of 4.7%, compared to an average of a 2.8% increase for employees who received an average rating. Across all groups, performance/bonus short-term incentive awards are expected to remain steady in 2021, the firm said.
• Industries impacted during the pandemic such as health care and retail, "are projecting a slight bump but still fall shy of pre-pandemic levels with salary increases projected to average 2.6% and 2.8%, respectively," according to Willis Towers Watson. Meanwhile, above-average increases are projected in the insurance industry (2.9%) and nondurable goods industry (3%). Before the pandemic hit, companies budgeted, on average, 3% increases in salary, but have granted employees increases between 2.5% and 2.7% this year, according to the firm.​

Dive Insight:

During the pandemic, many companies have implemented pay cuts; however, most are determined to pivot back to salary increases, according to Catherine Hartmann, North America Rewards practice leader at Willis Towers Watson. 

"This has been the most challenging compensation planning year for many companies since the Great Recession," Hartmann said in a statement. "However, unlike then, companies have been hit differently depending on their industry, the nature of how work gets done and the type of talent they need." For example, research has shown that sales compensation plans have been adjusted in terms of final compensation. Most companies have reduced the size of 2020 salary budgets and "are holding the line on increases for next year," Hartmann said. 

Managing the short-term effects of financial downturn amid the COVID-19 pandemic effectively can give organizations greater options when it comes to controlling long-term outcomes, Mercer, a human resources consulting firm, told HR Dive in April. Conserving cash and delaying increases and grants this year preserves flexibility, according to Mercer. But at the same time, companies should consider evaluating potential compensation and benefit actions to take later to improve cash flow. If employers achieve a balance between economics and empathy during the pandemic, they will be rewarded with loyalty from workers, candidates and customers, the firm said. 

"Most companies will continue to be in a cash preservation and cost optimization mode regarding their budgets, Hartmann said. "And although many companies are looking toward stabilizing their business next year, the full extent of the economic impact of the pandemic is yet to play out. Companies will remain cautious and continue to adopt strategies that attempt to balance employee engagement with protecting their core business." 

But amid the financial crisis caused by the pandemic, fewer workers are expecting a pay increase, according to an Aug. 4 Randstad US survey. About 62% of the 1,200 employees surveyed said they expect a pay raise every year to remain at their current company, which is down from 82% in 2018. More than half (58%) of the respondents said they would prefer to negotiate for a better benefits package than a higher salary. 

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Source: HR Dive

https://www.hrdive.com/news/salary-increases-set-for-workers-in-2021-compensation-plans-survey-finds/584086/

Aimed at stressed out parents, the offerings try to make up for widespread school closures

By Jena McGregor | August 20, 2020

Tech firms and other major corporations that have long offered family-friendly perks for their employees’ youngest children are adding new educational benefits to help with school-aged kids as working parents again face a school year juggling work and virtual learning.

A program initiated by discussions between Accenture and Bright Horizons, the child care center operator, and being adopted by Microsoft, Bank of America and Accenture, will offer employees of these corporate giants access to small-group, part-time, “school-day supervision” at a heavily subsidized cost.

The program, which will operate through a network of centers that includes Mathnasium, Sylvan Learning and Code Ninjas, will be available to other employer clients of Bright Horizons as capacity allows.

It is one of a fast-growing range of benefits some employers are starting to offer working parents struggling with the crushing stress and financial burden of work and virtual school.

Bank of America and Accenture are continuing their expanded backup child-care benefits and the bank said it would be offering “virtual field trips” and educational webinars for parents. The dairy co-op Tillamook has started offering employees a block of 10 hours of online tutoring per child from an online platform called Varsity Tutors.

“Employees had been through two and a half months of Zoom classrooms, and it was a nightmare, even for the most tech-savvy parents,” said Ellyn Shook, who leads human resources at Accenture. “Parents said they needed educational support, not just babysitting.”

From tutoring discounts to funding searches for virtual school facilitators to help with forming learning pods or micro-schools, the new benefits will be helpful for many exasperated working parents — if yet another way the pandemic is exposing deep inequities between America’s workers.

According to the Society for Human Resource Management, 4 percent of the member companies it surveys in an annual snapshot of employee benefits offered subsidized child-care centers or programs, and about 40 percent did not even offer a dependent-care flexible spending account, a pretax benefit used to pay for child care.

Megan Neumann, a consultant at Mercer who focuses on employer health and benefits issues, said she’s getting at least four times as many inquiries from clients about child care and educational help as she was in March. “Employers really haven’t ever been focused on [the needs of school-age kids]," she said. “People have depended on the school year to provide for watching children and fostering a learning environment.”

Meanwhile, employers are having to consider the safety risks of on-site options while navigating the tricky communication to employees that the new benefits may be only temporary. “They’re re-shifting priorities to have funds available, but for [many employers] this is not a long-term strategy,” Neumann said. “Nobody likes things being taken away.”

Providers of online tutoring platforms such as TutorMe and Varsity Tutors said interest from corporate clients has grown rapidly after being nearly nonexistent before the pandemic. Brian Galvin, chief academic officer of Varsity Tutors, said his company has created a division to focus on employer clients. “It’s a pretty recent phenomenon, even really after July 4,” Galvin said.

Mercer’s Neumann said there has been an “explosion of innovation” from other providers. Wellthy, which helps employers connect workers with assistance for chronically ill family members, added a service to help employees find qualified nannies or virtual schooling facilitators. Chris Bennett, CEO of Wonderschool, a network of in-home preschools and “micro-schools," said he’s getting inquiries from businesses about matching up employees with teachers starting learning pods or other programs in their homes.

Bright Horizons has also received many inquiries about options for older children. In cases where state licensing already allows, Bright Horizons CEO Stephen Kramer said, some of its centers are able to add school-age children to existing operations. In early August, it acquired Sittercity, an online platform for finding nannies or sitters, which recently added the ability to search for learning pods. Employers are also buying subscriptions for their employees to have access to Sittercity.

But some employers were hearing from workers who wanted more educational help. Shook began talking about possible alternatives with Kramer, knowing it had been operating some of its child-care facilities continuously for essential workers since the pandemic started and appreciating the safety measures they were enforcing. That, she said, gave her “confidence that the partners they’re working with are going to follow strict protocols.”

The program, which at launch will include 1,800 Mathnasium, Sylvan Learning and Code Ninja locations, will be offered at three-, four- and seven-hour-per-day increments, depending on provider. It will cost employees $5 an hour, with employers picking up the majority of the cost. Facilitators will help students work through their virtual curriculums, adding activities like extra math or coding during down times.

With safety precautions such as mandatory masks, temperature scans and 10 to 12 kids per location — as well as keeping the same cohort of kids together each day — Shook hopes parents will feel comfortable with the program. If not, Accenture is also offering expanded backup child care and discounts on tutoring.

Keli Kemp, the co-founder of Atlanta-based transportation consulting firm Modern Mobility Partners, said she wasn’t sure she would feel comfortable sending her children to a tutoring center with kids she doesn’t necessarily know. But her small, 15-person firm is offering a “learning pod" for employees with young kids at their unused office space, paying a “learning assistant” to oversee the virtual schooling of one of her children and those of two colleagues, all of whom have been strictly social distancing for months.

The arrangement allows Kemp and her two colleagues to meet in-person two days a week while the learning assistant oversees the kids’ schooling on the other side of the office; the other days, they rotate having her come to their homes. The pod includes a kindergarten girl, a sixth-grade boy, and each of the women has a third-grade son. The boys "knew each other, but during covid they started doing Zoom calls while we would be on Zoom calls,” Kemp said, and all became friends.

The first day of school, Aug. 17, Kemp said she was able to work productively on email and bills, as well as meet with her colleagues face-to-face. “The kids were so quiet this morning — I thought, ‘oh my gosh, this is amazing,’ " she said. "Lunch started getting a little rowdy, but now they’re being quiet.”

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Source: The Washington Post 

https://www.washingtonpost.com/business/2020/08/20/accenture-employer-benefits-school-children-tutoring/ 

By Maddy Simpson | August 13, 2020

As the coronavirus recession continues to impact organizations nationwide, many firms have had to lay off or furlough employees. But now, as the country begins to open up, employers must make decisions about their remaining employees. One big decision: 2020 salary increases.

Since 2009, average salary increases have risen each year since their all time low in 2008 due to the Great Recession.

“As the economy recovered following the financial collapse in 2008, we first saw a gradual rise in salary increase budgets, then a leveling off,” said Sue Holloway, director at WorldatWork. “Over the past two years with low unemployment rates and increased competition for talent, we saw a bigger jump in salary increase budgets.”

WorldatWork’s 2020 Salary Budget Survey surveyed about 5,000 employers to understand what firms were doing with salary budgets in this volatile market.

In 2019, WorldatWork reported an average salary increase across all industries of 3.2%. This year, the average increase dropped to 2.9%. Though 70% of firms still plan to increase salaries between 3% and 4%, many employers are opting to forgo increases altogether due to the pandemic.

The survey reports that all industries surveyed have median salary increases at 3%, with the exception of the educational services industry, which had a median salary increase of 1%. On the flip side, the industries that showed no change from 2019 were the public administration industry and the accommodation and food services industry.

“There's unevenness [in the impact of the coronavirus],” says Catherine Hartmann, rewards practice leader for North America at Willis Towers Watson. “Certain industries have been hit and particularly challenged like healthcare and retail.” Hartmann notes that, in its uneven impact, this recession is different from the Great Recession, so firms have to respond differently than they may have then.

Holloway warns that the pandemic’s effect on salary budget data may not yet be fully realized. Because of this, WorldatWork plans to update the survey in October to see the continual impact of the recession.

As the impact of the pandemic continues to be realized, Hartmann urges firms to remain cautious while still taking steps to recruit and retain employees.

“Caution is wise, but [employers] also have to manage that there still is a war for talent, for particular skills and knowledge areas,” Hartmann says. “So while [employers] should remain justifiably cautious, they might want to adopt strategies that balance employee engagement with protecting their core business and financials.”

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Source: Employee Benefit News (EBN) 

https://www.benefitnews.com/news/salary-budget-increases-fell-on-average-from-2019-to-2020-survey-finds

August 18, 2020 10:00 ET

Employers project health benefit costs will climb more than 5% but impact of pandemic adds uncertainty

WASHINGTON, Aug. 18, 2020 (GLOBE NEWSWIRE) -- Large employers plan to expand virtual care offered to employees next year as well as double down on mental health and emotional well-being as they continue to address the COVID-19 pandemic, according to an annual survey by Business Group on Health. Employers project health benefits costs will rise by more than 5% in 2021 although the pandemic’s impact is fueling uncertainty about overall costs.

According to the 2021 Large Employers' Health Care Strategy and Plan Design Survey, the total cost of health benefits is expected to rise 5.3% in 2021, taking cost management initiatives into account. The increase is slightly higher than the 5% increases employers projected in each of the last five years. Including premiums and out-of-pocket costs for employees and dependents, the total cost of health care is estimated to be $14,769 per employee this year, an increase of $197 from last year. The total cost is projected to rise to an average of just over $15,500 in 2021. In line with recent years, employers will cover nearly 70% of costs while employees will bear about 30%, or nearly $4,500.

“Health care costs are a moving target and one that employers continue to keep a close eye on,” said Ellen Kelsay, President and Chief Executive Officer of Business Group on Health. “The pandemic has triggered delays in both preventive and elective care, which could mean the projected trend for this year may turn out to be too high. If care returns to normal levels in 2021, the projected trend for next year may prove to be too low. It’s difficult to know where cost increases will land.”

The exponential growth in virtual care is one of the major trends identified in the survey, some of which is being fueled by the pandemic. Eight in ten respondents (80%) believe virtual health will play a significant role in how care is delivered in the future, a sharp increase from 64% last year and 52% in 2018.  Additionally, over half (52%) will offer more virtual care options next year.

Nearly all employers will offer telehealth services for minor, acute services while 91% will offer telemental health, and that could grow to 96% by 2023. Virtual care for musculoskeletal management shows the greatest potential for growth. While 29% will offer musculoskeletal management virtually next year, another 39% are considering adding it by 2023. Employers are also expanding other virtual services including the delivery of health coaching and emotional well-being support. These offerings are expected to increase in the next few years.

“Virtual care is here to stay. While employers have been implementing more virtual solutions in recent years, the pandemic caused the pace to accelerate at an astronomical rate. And virtual care is now garnering growing interest and receptivity from both employees and providers who increasingly see its benefit,” said Kelsay.

Another key trend for employer plans in 2021 is the expansion of access to virtual mental health and emotional well-being services to address provider shortages, minimize wait times and reduce the stigma associated with seeking care. More than two-thirds of respondents (69%) provide access to online mental health support resources such as apps, videos, and articles, and that number will jump to 88% in 2021. Employers are also taking other steps to bolster mental health services besides expanding virtual options. Roughly half (47%) provide manager training to help recognize mental and behavioral health issues and direct employees to services. Another 18% plan to do so in 2021. Half of respondents (50%) will conduct anti-stigma campaigns in 2021.

Employers are also helping to address cost barriers by reducing out-of-pocket costs for mental health services. More than half (54%) are lowering or waiving costs for virtual mental health services in 2021.  More than a quarter (27%) will reduce the cost of counseling services at the worksite, bolstering the trend to bring services directly to employees.

“Employers were already prioritizing mental health and emotional well-being before the pandemic hit. Now it’s a significant crisis. In addition to those individuals with pre-existing mental health needs, many more employees and family members are now dealing with anxiety, stress or loneliness. We expect employers will boost their investment in programs that support employees’ mental health and emotional well-being,” said Kelsay.

Among other survey findings:

• More employers are linking health care with workforce strategy:  The number of employers who view their health care strategy as an integral part of their workforce strategy increased from 36% in 2019 to 45% this year.
  
• On-site clinics continue to grow: Nearly three in four respondents (72%) either have a clinic in place or will by 2023. Some employers are expanding services – 34% offer primary care services at the worksite, and an additional 26% plan to have this service available by 2023.
  
• Growing interest in advanced primary care strategies:  Over half of respondents (51%) will have at least one advanced primary care strategy next year up from 46% in 2020. These primary care arrangements, which move toward patient-centered population health management emphasizing prevention, chronic disease management, mental health and whole person care are key focus areas for employers.
  
• Employers remain concerned about high-cost drug therapies. Two-thirds of respondents (67%) cited the impact of new million-dollar treatments as their top pharmacy benefits management concern.

About the Survey
The 2021 Large Employers' Health Care Strategy and Plan Design Survey was conducted between May and June 2020. A total of 122 large employers participated. Collectively, respondents represent a wide range of industry sectors and offer coverage to more than 9.2 million employees and their dependents.

About Business Group on Health
Business Group on Health is the only non-profit organization devoted exclusively to representing large employers' perspective on health policy issues and optimizing workforce strategy through innovative health, benefits and well-being solutions. Business Group keeps its membership on the leading edge of innovation, thinking and action to address health care cost and the delivery, financing, affordability and experience with the health care system. Business Group members, many of whom have operations globally, include 74 Fortune 100 companies, and provide health coverage for more than 60 million workers, retirees and their families in over 200 countries. For more information, visit www.businessgrouphealth.org.

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Source: National Business Group on Health

https://www.globenewswire.com/news-release/2020/08/18/2080056/0/en/Large-U-S-Employers-Accelerating-Adoption-of-Virtual-Care-Mental-Health-Services-for-2021-Business-Group-on-Health-Survey-Finds.html

a look at a global pandemic’s impact on the world of work

Despite COVID-19 being at the forefront of the global conversation and the resulting economic uncertainties, job seekers are displaying signs of confidence — including negotiating salaries, backing out of job opportunities and even ghosting or ignoring calls from potential employers. The Randstad COVID-19 2020 U.S. Compensation Insights survey explores the sentiments of 1,200 American workers on today’s salary negotiation practices, honing in on generational and gender differences.

Here’s what we learned:

Although younger workers are more likely to get cold feet or “ghost” prospective job offers, these generations are doing less of it — and the number of traditionalists (65+) is on the rise.

I've gotten "cold feet" with a job opportunity in the past, accepting a job offer, only to change my mind and back out at the last minute.

54% of gen z 
60% of millennials
50% of gen x
35% of boomers
28% of traditionalists

I've “ghosted” (accepted a job offer only to disappear entirely without informing the employer ahead of the start date) an employer for a higher paying job opportunity elsewhere.

48% of gen z
52% of millennials
41% of gen x
21% of boomers
16% of traditionalists

Despite the pandemic, not much has changed in other respects. Our survey reveals a continued disconnect between employer wants and employee needs regarding pay transparency.

	2019*	2020
I prefer to keep my salary or pay private and not discuss it with others.	76%	78%
My company does not publish salary or pay information for each role.	55%	54%
I wish my employer would publish salary or pay ranges of what each role earns across the company.	60%	58%
My company publishes salary or pay information for each role.	45%	46%

Women and men have different salary negotiation tactics. Women can be better self-advocates, but the trend of women being less likely to engage in any sort of negotiating or discussions or pushing for higher salary continues.

	all	women	men
I have asked my colleagues about their salary before entering salary negotiations.	41% agree	36%	47%
I would rather negotiate for a higher amount and settle for a number in the middle than ask for nothing.	78% agree	75%	81%
I've never negotiated my pay.	54% agree	57%	51%
As a negotiation tactic, I've told a prospective employer I had another job offer — when I really didn't.	39% agree	35%	44%
I prefer giving a specific number rather than a range when negotiating for a higher amount.	65% agree	61%	70%
I would leave my role to find an equivalent position at a different company just to make a salary jump that I won't receive if I stay at my current company.	63% agree	60%	66%

Generationally, older workers are more likely to ask up front for the salary they want, whereas younger workers are more indirect with negotiations.

I would rather negotiate for a higher amount and settle for a number in the middle than ask for nothing.

71% of gen z
78% of millennials
82% of gen x
79% of boomers
82% of traditionalists

I've never negotiated my pay.

61% of gen z
61% of millennials
52% of gen x
45% of boomers
52% of traditionalists

As a negotiation tactic, I've told a prospective employer I had another job offer when I really didn't.

52% of gen z
62% of millennials
50% of gen x
34% of boomers
22% of traditionalists

Compensation remains a key factor in employee retention, but employees appear to be less confident that they will receive ongoing pay increases in the wake of the global pandemic.

My compensation is sufficient to make me stay in my current role for the next 12 months.

  

I expect a pay raise every year in order for me to stay at my current company.

	2018**	2019*	2020
all employees	82%	66%	62%
gen z	82%	73%	65%
millennials	91%	74%	78%
gen x	80%	71%	72%
boomers	76%	62%	57%
traditionalists	63%	43%	40%

Additionally, while salary remains important, there are other ways to effectively attract and retain workers.

I would rather take a position with growth potential than a position that pays more but does not challenge me.

I would rather negotiate for a stronger benefits package than a higher salary.

Lastly, job satisfaction remains positive as employers respond to COVID-19.

I am satisfied at how my employer's response to COVID-19 met my personal needs.

I am satisfied at how my employer's response to COVID-19 met my professional needs.

Their compensation has not been negatively impacted by COVID-19.

I have a positive outlook on my employment options over the next six months and 12 months.

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Source: Randstad

https://rlc.randstadusa.com/for-business/learning-center/future-workplace-trends/randstad-2020-compensation-insights?utm_campaign=rusa_workforce%2Bmanagement_client_rus_all&utm_medium=press&utm_source=prnewswire