5 Ways to Know Your Training Dollars Paid Off

Share on LinkedIn Share on Facebook Share on Twitter Share on Google Plus Share this Page

As a business leader, you foot the bill for training, but how do you know you’re getting your money’s worth? You can, and should, rely on your in-house trainers and external suppliers to provide quality, meaningful training. But as the saying goes, you can lead a horse to water…

The good news is…you, as a business leader, are in the ideal position to increase the likelihood that the skills learned in class will transfer to the job. In fact, research suggests 2 of the 3 most important roles related to training are #1 – Manager Before and #3 – Manager After. In other words, what the manager does before and after training contributes most to whether or not the training is ‘transferred’ (a.k.a. applied).

Here are five pretty painless ways to make that happen…

  1. Participate. Ask for an executive overview of the training – for yourself and/or the managers of those being trained. The supplier, for example, would spend 30 minutes or so walking you through the program, including key learning points, models or techniques taught, application exercises used to help participants experience and retain the concepts, etc. You would receive a participant workbook and any job aides or handouts. Ideally, the executive overview precedes the training. This gives you the opportunity to request that certain points be emphasized or aligned with current business priorities. It also positions you to reinforce the new behaviors after the training.  
  2. Model. Select one aspect of the training that resonates with you, apply it to your role, and start practicing it. It could be anything from using the Situation-Behavior-Impact feedback model, to documenting performance expectations for your direct reports, to starting every company-wide meeting by publicly recognizing a handful of employees who have exceeded goals, to authoring a blog to keep employees ‘in the know’.
  3. Reward. Allocate a small sum of money to be used to reinforce the demonstration of behaviors and skills learned in training for 90 days following. Have managers of the participants partner with the facilitators to generate a short list of behaviors/skills to be rewarded. Publicize to participants that managers will be on the lookout to ‘catch’ them doing things ‘right’ and distributing rewards accordingly.
  4. Ask. ‘Walk the floor’, asking employees about the training…what they learned, what was most valuable, what they applied, how it worked, etc. Once employees learn they will be held accountable, they will be more likely to put the training to use.
  5. Connect. Tie the training to related initiatives, facilitating immediate application. For example, train employees on writing and delivering performance reviews just before they are due, train employees on goal setting at the beginning of the year, train employees on communication and team building at the start of a large organization-wide project, etc. Time the training and ‘tee it up’ by communicating why it’s being offered, why it’s important, and what related activity will immediately follow that calls for those skills. Having a senior leader endorse the training at the beginning of class is a great strategy too.

Leaders are like the media…they ‘tell’ us what to pay attention to and talk about. Take advantage of your role; try out these five easy steps. You will be amazed at how much more value you will get out of your training investment. And, who knows, you may even find a new technique that produces returns for you, too!

 

5 Common Management Challenges (and How to Overcome Them)

Share on LinkedIn Share on Facebook Share on Twitter Share on Google Plus Share this Page

5 Common Management Challenges (and How to Overcome Them)

Trainers often get the chance to see firsthand what can happen when a breakdown in communication occurs between employees and their supervisors.

A woman once approached an ERC Trainer during a break in the training session who was very emotional and teary eyed. In her seven years with the company, not once had her boss asked how her weekend was. Her boss was a driver, with a direct, ‘Don’t waste my time, I don’t want to know about your personal life’ kind of attitude.

At a superficial level, that seems fine but employees sometimes feel they need interpersonal communication to achieve a certain level of trust. If an employee feels that their supervisor doesn’t care about them, they can become disengaged and even tune the boss out.

Maintaining good lines of communication is just one challenge managers and supervisors face. The management of conflict and performance, and management of potential liabilities can be tough hurdles to clear, too.

Failing to address any of these issues can lead to damaging consequences for an organization. Companies, though, can be proactive in avoiding these pitfalls through the support and development of their managers.

Here are 5 common challenges for managers and supervisors—and some practical ways to deal with them.

Communicate.

Managers frequently are not aware of the quality of their communication or, as the above example illustrates, how their communication or interpersonal style are perceived by their employees.

You can help managers understand their unique communication and interpersonal style and how to “flex” this style in different situations by providing communication templates, scripts, tips or checklists.

Engage in role-play or dialogue with the manager to help them practice their skills and identify opportunities for improvement. Additionally, educate managers on common communication breakdowns and how to avoid them and encourage managers to notice signs of communication problems (misunderstandings, consistent performance problems, etc.).

When all else fails, provide a personal coach if communication problems persist

Resolve conflict.

Many managers ignore problems and do not directly address conflicts with their employees or work team.

Whether these are performance problems, conflicts among team members, issues of trust or personality clashes, managers are challenged to confront and address problems head-on and as they emerge, diffuse employees’ feelings and emotions about the problem, listen to both parties’ needs and desires, derive win-win solutions that lead to more productive and positive work relations, and prevent conflict in the future by nurturing positive coworker relationships and recognizing potential for conflict or problems early.

Manage performance.       

Managers must balance meeting goals, managing workloads and motivating employees. These issues, coupled with the fact that many managers are ill-equipped to provide regular and constructive feedback and may not understand the importance of documenting performance, can make managing performance challenging.

To support them, build on-going performance feedback into the performance management process to ensure accountability. Create an easy method for managers to document performance like a database, log, or diary. Provide support tools for managers such as rewards, recognition, training, and development to recognize and build performance. Most importantly, train managers in topics such as performance management, coaching, and feedback since many will have had no experience with these.

Handle protected employees.

Most managers are not well-versed in administering ADA, FMLA and other laws that protect certain groups of employees, but unknowingly find themselves managing an employee who requires an accommodation, leave of absence or falls into a protected class.

These situations need to be handled delicately due to their legal nature, so make managers aware of:

  • Legal basics such as conditions or disabilities that are protected
  • How to determine essential functions and reasonable accommodations
  • Requirements associated with FMLA (eligibility, length of time, etc.)
  • Types of employees that are protected under law (gender, race, national origin, etc.)
  • Hiring and interviewing liabilities (questions to ask/not ask, etc.)

Administer policies fairly and consistently.

One of the most common challenges for managers is treating employees fairly and consistently. A manager may allow policies and rules to be disregarded by some employees and not others—or may disregard employment policies altogether. “Stretching” the rules for some employees can open up a range of potential liabilities and perceptions of bias and favoritism that have negative far-reaching effects in the workplace.

Be sure to write clear policies and let managers know when changes have been made. Set clear criteria for making employment decisions, particularly where managers need to distinguish between employees (recognition, reward, development, etc.). Also, clearly differentiate between the policies in which managers have discretion to implement and those in which they do not.

Interested in learning more about training your supervisors?

Submit your contact information and receive instant access to a video highlighting our process and a brochure featuring our courses, delivery methods, and success stories.

Preview Supervisory Training

 

8 Resources Every HR Professional Should Know About

Share on LinkedIn Share on Facebook Share on Twitter Share on Google Plus Share this Page

We’ve compiled a collection of eight (8) of our favorite HR resources – free comprehensive tools and information that many of our members find valuable for common tasks like staying compliant, administering FMLA, or finding and supporting employees.

1. Staying Legally Compliant

The Department of Labor (DOL) offers a variety of e-law Advisors, interactive tools that provide information about a number of federal employment laws. Employers typically find these tools very helpful in providing greater understanding of compliance and employment law information. Specific e-law Advisors include FLSA, H1-B, Health Benefits Advisor, OSHA, Drug Free Workplace, Contractor Compliance, and more. Similarly, the DOL also provides an Employment Law Guide that helps employers create policies for their handbook.

2. Accommodating Employees

Employers frequently need to support employees through difficult conditions and circumstances. Whether you’re accommodating employees to be compliant or to better support employees as you create a great place to work, the Job Accommodation Network (JAN) is an ideal resource that provides ideas and examples on what level of accommodations and flexibility are appropriate for different situations. It also helps employers better understand a variety of disabilities and psychological/medical conditions that impact their workforce.

3. Administering FMLA

Leave administration, particularly FMLA, is one of employers’ greatest responsibilities and challenges. Employers are frequently looking for resources surrounding administration of this law to help them administer it. This site is one of our members’ favorites as it highlights all of the most common forms, fact sheets, and general guidance for administering family medical leave required by the law.

4. Creating and Updating Job Descriptions

O*Net is a comprehensive, free resource for job analysis and job description information. It provides detailed information including a summary of a job, alternate job titles, tasks, tools and technology used, knowledge, skills, abilities, work activities, and work context. It even contains information on interests, work styles, work values, wages and employment trends, and education/training requirements relevant to a specific job. The tool is useful for employers that are creating job descriptions and supports a range of other HR functions like hiring and performance management. The Dictionary of Occupational Job Titles is also another ideal resource for job related information, included within O*Net.

5. Developing Employees

Career One-Stop has all the components of a comprehensive career development service (without the cost). Employees can explore careers, assess themselves, write job descriptions, evaluate and profile their skills, and find developmental programs and resources. This tool, as well as the Ohio Workforce Informer, Riley Guide, and BLS Career Guide to Industries, are other valuable career development tools for employees to utilize when developing themselves and can complement employers’ career development programs.

6. Staffing and Workforce Planning

Employers often seek information about local employment trends that impact their business for staffing and workforce planning purposes. While the Bureau of Labor Statistics (www.bls.gov) provides ideal national information for this purpose, most organizations don’t realize that the state of Ohio provides a labor market website that details information about local employment trends and projections, current employment statistics, supply and demand, and skills/training. In addition, Ohio Means Jobs is a free website to search for candidates and post jobs that also helps employers recruit and staff.

7. Auditing Wage & Hour Practices

FLSA compliance is one of ERC’s most common questions and an area where many employers may find themselves non-compliant. In the event of a Wage & Hour audit, the DOL provides a checklist of items requested. This checklist is not only ideal for organizations being audited by the DOL, but also for those that want to prepare for an audit. You can download this checklist here.

8. Posting Requirements

The DOL makes posting requirements available to employers including information about what organizations must post, citations and penalties, and other information. Click here to view these requirements. Employers can also download PDF posters on this site.

In conclusion, the Department of Labor and other governmental agencies can offer free resources and support for your organization. With vast amounts of information, online tools, free training and webinars, and access to experts, they can be very helpful for employers and particularly HR departments – often in ways that many organizations don’t anticipate.

Additional Resources

HR Training
Gain even more crucial skills and resources to be successful in your HR role through various ERC HR training courses. For more information on these informative training courses which cover all aspects of HR including employment law, compensation, benefits, performance management, orientation, communication, please click here. To view other upcoming HR programs, click here.

HR Help Desk
ERC’s Help Desk staff is exceptional at working with governmental agencies to answer employers’ questions, resolve problems, and locate information, resources, and forms to meet your needs – especially when you don’t have time to do the research yourself. Just e-mail hrhelp@yourerc.com for assistance.

HR Practices
Benchmark how your HR practices compare to other Northeast Ohio employers by participating in our Policies and Benefits Survey. This survey covers benefits, compensation, recruiting, hiring, communication, training, development, and safety practices. Click here to participate.

Other HR Resources
In addition to resources discussed in this article, ERC members enjoy an array of additional resources related to compensation, benefits, and policy information; HR Help Desk service, sample forms, job descriptions, and policies; cost-savings (and free services provided by some of our Preferred Partners); and more. Click here to find out more about the benefits of being an ERC member.

 

Hiring & Selection Practices Survey Results

Share on LinkedIn Share on Facebook Share on Twitter Share on Google Plus Share this Page

This report summarizes the results of ERC’s survey of 117 organizations in Northeast Ohio, conducted in February of 2011, on practices related to hiring and selection.

The survey reports trends in:

  • General selection methods
  • Reference, background, and credit checks
  • Drug tests
  • Employment tests
  • Pre-screening interviews
  • Hiring decisions
  • Sign-on and employee referral bonuses
  • Introductory periods
  • Hiring metrics
  • Hiring projections

 

11-Hiring-Selection-Practices-Survey.pdf (174.54 kb)

Easy Ways to Keep the Generations Engaged

Share on LinkedIn Share on Facebook Share on Twitter Share on Google Plus Share this Page

The concept of Employee Engagement has grown significantly in popularity over the years. Research shows that more traditional concepts of employee opinion or employee satisfaction don’t necessarily correlate to the likelihood that employees will stay and thrive, go above and beyond their primary job duties, or recommend the company’s products and services to customers. But those are the very definitions of employee engagement.  Research also shows that top performers tend to be more engaged than average or low performers and they out-produce their counterparts. So, the question is NOT whether keeping workers engaged is important or not.  Most senior leaders today would agree it is. The million dollar question is ‘HOW do we engage our workers’? Or, more pointedly, ‘How do we engage what is now a very diverse workforce’? We don’t all follow the beat of the same drum. (Some of us have trouble deciphering text messages from Millennials, let alone producing a beat they might follow!). But if we study what’s important to the generations and we study what influences engagement, we find quite a bit of overlap and some pretty easy ‘fixes.’

For example, the Traditionalists (born before 1946) tend to be driven by formal, public recognition, leadership roles, and responsibility. These are likely the folks who’ve been with your organization for many years, perhaps approaching retirement. They may feel that ‘No one cares what we think and what we know; no one asks us for feedback anymore.’ In most cases, they are storehouses of undocumented information about the company, products and services, customers, and processes. Often they are underutilized, disengaged resources.

A great way to engage this group is to establish them as mentors. Serving as a mentor meets Traditionalists’ needs for leadership, responsibility, and recognition, and mentoring is a key driver of employee engagement.  Whom should they mentor? The Millennials (born between 1982 – 2000). A recent study discovered that unlike previous generations who joined and identified with a company, this generation identifies with a person, specifically a leader. They want their own workplace and career tour guide. They look for someone to connect with whom they can learn from and who will champion them and their career. Who better to provide that connection than their own dedicated mentor? Plus, tenured mentors can learn a lot from the Millennials too.  In fact, pairing people strategically to ensure mutual benefit is a key to the success of this type of initiative. Be sure to take personality, workstyle, skill set, background, and interests into account, and give both mentors and mentees choices in partnering. Finally, to ensure engagement is impacted, both mentor and mentee should benefit from job challenges, training, recognition, development and growth, and autonomy as part of the mentoring experience.

Baby Boomers are motivated by recognition, taking charge, making a difference, teaming, personal growth, health and wellness, autonomy and creativity, competition and success. If they aren’t already formal leaders in your organization, these are ideal people for informal leadership roles. Engage them by asking them to ‘chair’ initiatives that matter to them. Projects involving wellness, community outreach, and the ‘customer experience’ are good examples.  The key to this approach is how you go about it. Let them choose the initiatives they want to be involved in. Appoint them as chair or leader as a form of recognition. Do it publicly. Allow them to form a team to work with. Provide the ‘what’ (the high-level goal), but let them decide on the ‘how’. When creating informal, meaningful leadership roles for Boomers, a few key elements must be present in order to impact engagement, including recognition, co-worker cohesion, and autonomy.

Last but not least, what about those strong-willed, independent Gen Xers? The areas of overlap between what engages workers in general and what drives Gen Xers in particular include challenging work, training, recognition and reward, a good relationship with their boss, coworker cohesion, and development and growth opportunities. In short, this group wants to feel as though they’ve ‘made it.’ With them, keep it high profile and you’ll keep them engaged. Here are some ways to do that:  allow them to work on company-wide challenges or the newest, most high profile venture. Ensure they have opportunities to interact with senior leaders. If their boss is not a strong, well-respected leader pair them with an internal mentor who is. If they are capable, put them on a fast track to assume a management/leadership role. Give them stretch goals and meaningful rewards such as bonuses, time off, and recognition. Permit them to attend off-site training or conferences, obtain certifications or pursue a degree. Ensure they work in areas of the organization where they have peers they can partner with, learn from and befriend.

Engaging your workforce in alignment with their generation-based needs is one way to maximize your organization’s return on your leadership investment. Committing to trying just a few ideas to better engage your employees can have real impact.  Many great leaders are said to have done some sort of personal accounting at the end of each day. When you leave your office each day, ask yourself….did I give my employees one more reason to go or one more reason to stay?

More Employers Have Space and Policies for Nursing Mothers

Share on LinkedIn Share on Facebook Share on Twitter Share on Google Plus Share this Page

The 2010 ERC Health Care Reform Issues Survey shows that the regulations imposed by the health care reform law appear to have influenced Northeast Ohio employers’ practices for nursing mothers. When compared to 2009, nearly all (98%) employers surveyed now have space set aside for nursing mothers, compared to only 79% of employers in 2009. All respondents with fewer than 100 employees and over 500 employees had these spaces.

Similarly, many more employers (28%) have nursing mothers’ policies in place compared to 2009 (6%). Larger organizations (over 500 employees) were more likely to have nursing mother policies compared to smaller organizations (fewer than 100 employees).

The survey’s results show that since the law’s regulations went into place in 2010, which required employers to provide nursing mothers with reasonable break time for nursing activities and functional space to do so, employers have changed many of their practices relative to nursing mothers.

9 Best Practices for Employee Engagement Initiatives

Share on LinkedIn Share on Facebook Share on Twitter Share on Google Plus Share this Page

A successful employee engagement initiative can make lasting and effective changes in the workplace.

Here are nine (9) best practices for your employee engagement initiatives. 

Collect data.

Conduct a regular employee engagement survey either every year or every other year. Organizations that consistently measure and track how well they are engaging employees are better able to assess areas of strength and opportunity in their workplaces to impact engagement. Most organizations that evaluate employee engagement survey employees at least every other year. If your organization is smaller, it may consider conducting a more informal benchmark for employee engagement such as interviews or one-on-one meetings.

Seek an external comparison.

Benchmark how well your workplace practices compare to other organizations. An external comparison is as important as an internal benchmark. You’ll need to know how your organization’s practices relative to engaging employees stack up against other organizations, particularly with those you are competing for talent. Market surveys, great workplace programs, and other audits can all provide helpful external benchmark information. Some organizations that conduct employee engagement surveys also provide normative comparisons.

Identify overall drivers.

Know the drivers of employee engagement at your organization. Drivers are simply those aspects that are most commonly and significantly driving employee engagement either up or down at your organization. There are many different facets of the workplace experience that influence engagement to varying degrees, but your resources and time are limited so you need to know which aspects are most important. By identifying the true drivers of engagement for your organization, you can focus your efforts on the things that matter most to your workforce and top people. A good employee engagement strategy is all about targeting the right things – not everything.

Identify individual drivers.

Many engagement initiatives fall short of identifying individual drivers of employee engagement - largely because this responsibility should fall on managers and supervisors. Managers and supervisors need to find out what engages each of their employees, and particularly their top people, through observation and conversations. These insights can be gleaned through day to day interactions, performance management, and communication. However, most managers and supervisors just aren’t attuned or trained to recognize what engagement is and why it matters. Your responsibility is to ensure that they have the right skills and resources to positively impact engagement.

Keep it relatively simple.

Scoring which is difficult to understand or results that includes too many segments or breakouts of data can detract from obtaining value in the process. If you conduct engagement surveys, make sure the scoring can be easily understood by those interpreting the results. Also, keep data segments and breakouts to a minimum so that the initiative does not become about “fixing” certain people, departments, or areas of business, but rather improving the engagement of employees.

Meet and discuss engagement with your leaders.

Once a survey, feedback, and/or benchmarking initiative had been conducted to evaluate employee engagement and how you compare internally and externally, it’s important to meet and discuss the results with your leaders. This ensures that engagement is seen as part of the larger business strategy and receives support. Key tips for creating this dialogue include: create an executive summary to help them digest the information obtained, tie the results back to issues of importance to them (business strategy, etc.), back your points with data and numbers, and provide recommendations for how to improve engagement. Another way you can make the results meaningful to your leaders is by providing segments of information that are important to them – such as engagement scores by the business’ divisions. The most successful engagement projects we’ve seen are those that are conducted with leadership support and participation from initial communications and analysis of the results to action planning.

Set goals aligned with employee engagement.

Having an employee engagement-focused strategy can help you set goals for your department and organization. Common goals that impact employee engagement include increasing employee engagement scores by a certain percentage, reducing voluntary turnover, enhancing communications effectiveness, increasing development opportunities, or even impacting the bottom line. Whatever these goals may be, they should be in line with the drivers of engagement and the areas of need. In turn, you should be able to tie these goals back to the larger business strategy. Be able to address why each goal is important to the business’ direction to gain support.

Create action plans, on-going conversations, forums, and follow-up.

Once you’ve set goals to improve employee engagement, create action plans to impact those goals.  We find that there tends to be a great deal of momentum initially right after an engagement survey that can become lost over time. To ensure that your goals are met and receive the support they need to be successful, create action plans with specific timetables, roles, and accountabilities. Additionally, if employee engagement is truly an important organizational initiative, it should permeate your organization and drive the actions of HR, managers, and leaders. Many organizations have on-going conversations and forums to discuss employee engagement and keep going back to the survey data.

Implement changes.

Lastly, implementing changes in an employee engagement initiative is crucial. Your organization should follow-up on the areas needing improvement either through direct change or acknowledgement of employees’ feedback, especially prior to surveying them in the future. If you plan to ask employees for their feedback – be prepared to respond because not making changes can lead to negative effects. It’s always a good practice to make any small changes quickly and to save the larger changes for later.

Additional Resources

Employee Engagement Surveys
ERC’s services are used by many local employers to gauge their employees’ engagement, identify drivers of engagement, benchmark scores to other local organizations, and help you translate the data into real, actionable changes. Click here to learn more.

NorthCoast 99
Benchmark how your organization’s workplace practices surrounding the attraction, retention, and engagement of employees compare to other employers by applying for the NorthCoast 99 award. All applicants receive free benchmark reports just for applying. 

Supervisory/Managerial Training
Are your supervisors and managers equipped to engage employees? Give them the right skills and competencies to impact engagement. Click here to learn more.

Interviewing Tips: What to Say and Ask (PDF)

Share on LinkedIn Share on Facebook Share on Twitter Share on Google Plus Share this Page

When conducting an interview, employers and their hiring managers need to keep in mind what to say and what not to say and ask in an interview to stay legal, attract great talent, and make good hiring decisions.

We've compiled a list of What to Say, What and What Not to Ask, How to Ask and How to Close. Click below to download the PDF:

Download: Interviewing Tips: What to Say and Ask (PDF)

Additional Resources

Interviewing Skills Training

To learn more about interviewing, including legal issues, effective questions, planning and evaluation strategies, and actual practice in preparing and delivering interviews, consider attending ERC’s upcoming workshop on “Interviewing Skills for Managers & Supervisors.” For more information or to register, please click here. Or, for interviewing training delivered on-site and customized to your organization’s needs, please contact ckutsko@yourerc.com.

 

12 Implications of Health Care Reform

Share on LinkedIn Share on Facebook Share on Twitter Share on Google Plus Share this Page

In response to the 2011 health reform, insurance carriers increase premiums. As employers start dealing with the law’s new requirements, there is a heightened focus on providing better education and communication to employees, on negotiating and investigating alternative options, making smarter benefits decisions, and enhancing wellness programs. Here are 12 ways in which health care reform impacts how we do business now and in the future.

1. Increased cost-sharing

Cost-sharing between employers and their employees for health insurance continues to increase. This is one of the easiest ways to manage health insurance costs, but naturally has effects on employee engagement and morale that employers need to consider. The average cost-sharing arrangement has steadily increased in the years preceding 2011.

2. Education about health benefits

Education about how employees can be better health care consumers is becoming more imperative. Often employees do not understand how usage affects costs and need to be educated buyers when using their health insurance plans. Ideas for education efforts other employers have initiated include:

  • Explain the costs associated with health care decisions (i.e. going to the emergency room vs. their primary care physician).
  • Show employees the drivers of health care costs at the organization.
  • Communicate what employees can and need to do in order to maintain or reduce their current costs. Specific actions steps are recommended.
  • Expand education to spouses who are also users of the plan.
  • Provide employees with key questions to ask their doctor.
  • Make health insurance an on-going conversation and communication effort with quarterly meetings to discuss trends, employee forums to discuss suggestions, and other media to disseminate wellness and health insurance information.

3. Use of benefit statements

Benefit or total rewards statements are a widespread and important communication tool that show employees how much the organization is investing in their benefits, and particularly their health insurance. Showing employees actual dollar amounts and levels of coverage your organization has been shown to enhance satisfaction and improve understanding.

4. Review of plan design

Reviews of plan design are increasingly occurring. Plan design should be reviewed carefully and different scenarios should be run and analyzed. Raising deductibles or co-pays to offset other costs or providing a health savings account (HSA) or health reimbursement account (HRA) are options to consider. But it’s also important to pay attention to the level of benefits that other employers are providing. Conducting an annual benefits analysis can help determine where employer benefits could be modified without compromising competitiveness.

5. Negotiation of options

Taking responsibility for your health care costs and seeking additional bids from other carriers is a necessity. Inquire about other options from your broker that reduce costs and provide greater wellness resources to help employees better manage their health. Your broker may not freely offer this information, so take initiative and ask.

6. Implementation of restrictions or penalties

Increasingly, organizations are implementing more restrictions in their health insurance plans such as spousal carve-out provisions and higher premiums for smokers. Shifting additional costs or penalties to unhealthy workers, although not widespread, is becoming more popular and may help reduce or manage health care costs.

7. Offering of incentives

Incentive use for wellness program participation is expanding. A chief reason that wellness programs may not reduce your organization’s health care costs is lack of participation. Studies continue to show, however, that employees are more likely to participate in programs when meaningful incentives are offered, such as discounts on health insurance premiums.

8. Health risk assessments

Usage of these assessments is becoming very common as they can be valuable data-gathering tools for both organizations and employees. Employees can attain greater insight into health risk areas and organizations can receive an aggregate report of areas where employees need wellness assistance. Wellness programs can then be targeted to those needs. 

9. Free prevention services

Services like flu shots, health screenings, cholesterol and blood pressure checks, vaccinations, and other yearly screenings are increasingly offered in the workplace.  By providing free wellness services on-site, you can decrease usage thereby managing costs better. Also, educate employees to take advantage of the new provision of health care reform which provides free annual preventative services.

10. Wellness initiatives tied to health insurance costs

Wellness initiatives are obviously one of the best ways to reduce health care costs and the majority of employers either have one in place or are planning on initiating one. When planning wellness initiatives, be sure to not only emphasize how your organization is supporting employees’ well-being, but also how these programs are intended to assist employees in better managing and maintaining their health care costs. Employees need to see the connection.

11. Promotion of healthy habits

Recently, we’ve found that more organizations are promoting healthy habits to deal with increasing health care costs through internal nutritional standards, on-site fitness activities, and educational efforts like seminars, paper materials, and online information. Create the “norm” of healthy behavior in your workplace to manage health care costs.

12. Make it a team effort

Involving employees in solving health insurance problems can be effective. Encourage them to get involved in suggesting or implementing wellness activities and to provide their feedback on health insurance options. Collaborating and creating a conversation with your staff can help generate greater buy-in about health care decisions and limit negative perceptions of change.

Navigating health care reform and its effects won’t be easy, but we’re seeing many employers taking a proactive approach and implementing a variety of initiatives to cope, educate, and manage the law’s changes and effects on their businesses. 

Additional Resources

ERC Health
Visit www.erchealth.com to learn about our health insurance offerings for small and mid-sized businesses.

HR Help Desk
For more information and guidance pertaining to any of the content in this article, please contact hrhelp@yourerc.com.

Employees Sharing More of Health Insurance Costs

Share on LinkedIn Share on Facebook Share on Twitter Share on Google Plus Share this Page

According to ERC’s 2011/2012 Policies & Benefits Survey, the average health insurance deductible paid by employees (as reported by Northeast Ohio employers) increased significantly from 2009. Employees' co-pay amounts and contributions to health insurance premiums also showed slight increases from 2009.

The results of the survey, which provided detailed information on a variety of health plans and health insurance practices, appeared to suggest that organizations continued to increase cost-sharing with employees to cope with rises in costs.

Specifically, the survey provided detailed information about eligibility for coverage, medical plan options, and detailed practices for HMO, PPO/POS, Indemnity, and High Deductible Plans including percent of medical premium paid; average amounts of co-pays, lifetime maximums, and annual deductibles; and in-network and out-of-network amounts. It also covered information about Health Savings Accounts in terms of average annual contributions, services covered, and out-of-pocket expense limitations, as well as Health Reimbursement Accounts, Prescription Drug Plans, and much more.