Blog – Page 31 – Pinnacle HR Solutions

Workplace security: What does it mean?

For some people, workplace security means being able to hang onto a job. But for business owners, it means protecting the organization from all kinds of potential threats.

When it comes to maintaining a safe, healthy, and profitable workplace, it’s important to give workplace security the big-picture attention it deserves.

What kinds of things should you be thinking about?

Let’s start with your data

Are you aware that the average cost of a data breach globally is $3.86 million? And that’s just the average. The cost of a mega-breach can range from 40 to 300 million dollars. Yikes. That’s a huge expense, especially considering that data breaches are usually sudden and unexpected.

So while the numbers can vary greatly, the facts don’t. Lose your data and it will cost you. Investing in data security measures will help make sure this doesn’t happen. Here are a few basic things you can do to help your data stay secure:

Educate your employees about how to create secure passwords, spot suspicious emails, and secure electronic and hard copy and data.
Evaluate your processes for how data is handled, stored and disposed of.
Create a strategy for how to deal with work-related technology and devices.
Keep your software updated.
Monitor Internet and network activities.
Use spam and email filters.
Consider encryption options and two-factor identification.
Train your staff on these issues regularly.
Offer or invest in identity theft protection.

Doing these things will require time and resources, but not doing these things could cost you far more.

Protecting your assets

We’ve established that data thieves are everywhere. But that’s not the only concern. There are still plenty of old-fashioned criminals out there who are very interested in taking your stuff. Even worse, some of them might be working for you.

Make sure you have systems in place to protect your product, inventory, and cash flow. Depending on your business, this could mean anything from investing in security guards, alarm systems, and video surveillance, to refining your inventory, accounting, auditing, and internal processes. You may also want to implement an anonymous fraud hotline where employees can report suspicious activity.

If you haven’t done a risk assessment recently, there’s no time like the present. As businesses change, so does risk. The threats you identified 10, 5, or even 2 years ago may not be the same threats you’re facing today.

Identify potential vulnerabilities, rank your priorities, and make sure you’ve got preventative and protective measures in place to address them. A trusted insurance consultant can be a very helpful advocate here.

The human side of risk

While we’re at it, let’s talk about investing in additional forms of security— for your buildings, offices, and employees.

It’s not just about protecting your assets, it’s about protecting you and your people. Putting a lock on the door and calling it safe may have worked at one time, but not anymore. Like it or not, workplace violence is on the rise, and emergency preparedness is becoming increasingly important.

When is the last time you discussed your company-wide emergency/crisis management plan? Is it up to date? Do your employees know what to do if something happens? Is there protocol in place for how to handle a workplace incident or disaster? Are there ways to mitigate confusion, damage, and loss?

Here are some key things you can do to help keep your workplace and your staff safe.

Always check references and encourage employees to report threatening or unusual behavior.
Educate and train managers and staff on how to identify warning signs and how to handle potentially dangerous situations.
Assess your security systems and protocol. How do people get in and out? Who has access? Locking doors, panic buttons, and bulletproof glass may seem like overkill, but you’ll want to look into your emergency procedures to see what seems right for your organization.
Create emergency plans for a variety of circumstances including man-made and natural disasters. Share them with the team and practice them regularly.
Come up with a detailed communication plan for emergency notification procedures.

If this sounds overwhelming, you may want to work with a professional consultant or organization that specializes in putting together this kind of plan. In a perfect world, you’ll never need to use it. Which is what we’re all hoping for.

But, if you do need to put an emergency plan into action, you’ll be glad you have one that’s well thought out and ready to go.

Photo by igorr

Risk Management: It’s More Than Just an Insurance Policy

When you think about risk management and your business, what comes to mind? Your finances? Your building and equipment? Your insurance policy?

These things are all important and worth protecting. But managing your organizational risk is about more than dollars and stuff. It’s about managing your operations and people, too.

Risk comes in all different sizes

We’ve all seen those scary insurance commercials featuring burglars, car crashes, and destroyed buildings. If you’re a business owner, you’ve likely invested in protecting your business from these events. Which is good! But your insurance policy can only do so much. In order for your business to run as smoothly and risk-free as possible, you’ll need to think well beyond break-ins, vehicles, and natural disasters.

There are all kinds of things that can wreak havoc on your business, and most of them aren’t nearly as spectacular (or unlikely) as a tornado. The key is to break away from these standard scenarios and take a look at things from a big picture lens.

Here are two key areas that may be getting overlooked when it comes to risk assessment and reduction.

1.) Health and wellness

If you think employee health is a personal issue, you are overlooking one key thing. Unhealthy employees make for unhealthy businesses.

The cost of absenteeism is often measured in sick days, but the hidden costs of presenteeism are harder to measure. Because of this, employers may tend to ignore the issue, but presenteeism can have a HUGE impact on your business.

Research by Global Corporate Challenge revealed that while employees reported being absent from work an average of 4 days per year, they also admitted to being unproductive on the job for an average of 57.5 days per year. That’s nearly three months! Or the equivalent of your entire staff working at 75% of their capacity at all times. Ouch.

But there is hope. The study also showed that presenteeism has an advantage over absenteeism when it comes to fixes.

Employees who participated in a comprehensive health program experienced improvements in sleep, stress levels, and overall happiness. Workers who participated in the program were shown to be happier, more relaxed, and yes, more productive at work. These employees (and employers) gained back the equivalent of ten days of lost time.

Building a healthy workplace means buying into a healthy culture and taking care of your employees. Some quick ways to do that include:

Valuing your employees as people first
Offering flexible schedules and paid time off
Managing workloads appropriately
Providing market value wages and compensation
Investing in ergonomic office equipment
Encouraging healthy behaviors via gym memberships, fitness classes, etc.
Participating in community giving and other charitable activities
Giving people access to help and support through Employee Assistance Programs, financial education, and employee benefits

You may also want to consider investing in organization-wide training and resources regarding drug testing, substance abuse, and treatment programs.

While these things may not automatically jump to mind when you think risk management, committing to a healthy workplace can be a huge factor in helping you maintain a healthy bottom line.

2.) Safety

OSHA says you must provide a safe working environment for your employees and you’ve likely done some work to make sure those boxes are checked. But when’s the last time you conducted a safety audit? Or asked your employees about what kinds of potential hazards or unsafe practices they see happening around them?

It could be something as simple as adhering that file cabinet to the wall or taping down that loose power cord. Or, it could be something that’s been baked into your organization over time: A pace of work that is unsustainable, hours and schedules that lead to exhausted, mistake-prone staff, or turning a blind eye to unsafe procedures.

If you haven’t built a culture of safety in your company, here are a few ways to start making it happen:

Keep your workplace and equipment clean, functional, and clutter free
Create an environment that welcomes safety communication and incident reporting
Form a safety committee dedicated to identifying and fixing potential issues
Conduct relevant, up to date, and interactive safety trainings for your team
Reward your team for safe behaviors and hold people accountable for unsafe conduct
Don’t just talk about safety. Invest in the equipment, processes, and measures you need to put in place to keep employees safe

Providing a safe work place doesn’t mean slapping up an OSHA poster and calling it good.

Really committing to safety won’t just reduce the possibility of loss due to workplace injuries, accidents, fines, and lawsuits. It will also show your employees that you care.

And that can go a long way toward building a better business.

Photo by Luca Bertolli

District Court Judge in Texas Strikes Down the ACA – But Law Remains In Effect for Now

Content provided to Q4iNetwork Consultants by Marathas Barrow Weatherhead Lent LLP.

On Friday, December 14, a federal judge in Texas issued a partial ruling that strikes down the entire Affordable Care Act (ACA) as unconstitutional. The White House has stated that the law will remain in place, however, pending the appeal process. The case, Texas v. U.S., will be appealed to the U.S. Court of Appeals for the Fifth Circuit in New Orleans, and then likely to the U.S. Supreme Court.

The plaintiffs in Texas (a coalition of twenty states) argue that since the Tax Cuts and Jobs Act zeroed out the individual mandate penalty, it can no longer be considered a tax. Accordingly, because the U.S. Supreme Court upheld the ACA in 2012 by saying the individual mandate was a legitimate use of Congress’s taxing power, eliminating the tax penalty imposed by the mandate renders the individual mandate unconstitutional. Further, the individual mandate is not severable from the ACA in its entirety. Thus, the ACA should be found unconstitutional and struck down.

The court in Texas agreed, finding that the individual mandate can no longer be fairly read as an exercise of Congress’s Tax Power and is still impermissible under the Interstate Commerce Clause—meaning it is unconstitutional. Also, the court found the individual mandate is essential to and inseverable from the remainder of the ACA, which would include not only the patient protections (no annual limits, coverage of pre-existing conditions) but the premium tax credits, Medicaid expansion, and of course the employer mandate and ACA reporting.

Several states such as Massachusetts, New York and California have since intervened to defend the law. They argue that, if Congress wanted to repeal the law it would have done so. The Congressional record makes it clear Congress was voting only to eliminate the individual mandate penalty in 2019; the record indicates that they did not intend to strike down the entire ACA.

It is worth noting that the Trump administration filed a brief early in 2018 encouraging the court to uphold the ACA but strike down the provisions relating to guaranteed issue and community rating.

The ACA has largely survived more than 70 repeal attempts and two visits to the U.S. Supreme Court. We anticipate it will survive this one too, in time. While the Supreme Court lineup has changed, all five justices who upheld the ACA in 2012 are still on the bench. Moreover, the Supreme Court may be reluctant to strike down a federal law as expansive as the ACA, particularly when it has been in place for nearly nine years and affects millions of people. Notably, the Supreme Court was not required to rule on the “severability” issue in 2012.

Given a strong tradition of the Supreme Court to avoid, if possible, broad rulings of unconstitutionality in established laws, it is not unlikely that the current Court, if this case makes it that far, will find a way to hold that even if the Court’s 2012 logic with respect to the individual mandate is no longer applicable, the rest of the law is severable and saved, thus avoiding once again a broad ruling on the ACA’s constitutional soundness. The bottom line: employers should continue to comply with the ACA, as its provisions (including the employer mandate and associated reporting) remain the law for the foreseeable future.

Photo by feverpitched

This alert was prepared for Q4iNetwork Consultants by Marathas Barrow Weatherhead Lent LLP, a national law firm with recognized experts on the Affordable Care Act.

The information provided in this alert is not, is not intended to be, and shall not be construed to be, either the provision of legal advice or an offer to provide legal services, nor does it necessarily reflect the opinions of the agency, our lawyers or our clients. This is not legal advice. No client-lawyer relationship between you and our lawyers is or may be created by your use of this information. Rather, the content is intended as a general overview of the subject matter covered. This agency and Marathas Barrow Weatherhead Lent LLP are not obligated to provide updates on the information presented herein. Those reading this alert are encouraged to seek direct counsel on legal questions.

Out of Pocket Costs: 3 Pain Points to Address

Guest blog content provided to Q4iNetwork consultants by freshbenies

It’s a sad healthcare reality that more and more Americans are being forced to decide whether they can afford to use their medical plans.

And while great brokers and employers are implementing strategic ideas to contain skyrocketing out of pocket costs, it seems to become even more challenging every year.

Employers are paying more to provide coverage, but employees and their families are also paying more than ever before as out of pocket costs continue to rise.

Here are three key problems associated with rising out of pocket costs that must be addressed by businesses and employee benefits advisors alike.

1. Shrinking coverage and higher costs go hand in hand

Employers are paying higher prices for plans with shrinking networks and narrowed formularies. These plans are forcing families to shoulder over 40% of medical cost, which averages about $11,500 annually— with $4500 of that being out of pocket spend. This has resulted in an increase of more than $1,000 every year for working families for the last four years running.

How do smaller networks and the rising cost of care play out? Consider this statistic: one-third of patients are referred to specialists each year, and 50% of those referrals are out-of-network.

With those kinds of numbers, it’s easy to see how the pain points of rising premiums, smaller networks and high out of pocket costs quickly collide for employees.

2. Foregoing care is costly for everyone

High Deductible Health Plans have been associated with a 55% reduction in office visits.

On the front end, HSAs have consistently remained a strong option for lower premiums and tax incentives, driven by the idea that it would empower employees to be better consumers. On the back end, however, we’re seeing that without providing practical transparency tools, education, and direction on how to navigate the cavernous healthcare space, people are tending to just avoid it altogether. Which means they are skipping both inappropriate and appropriate care.

The great irony is that while the US spends the most on healthcare, we are not among the healthiest populations. Too often, Americans are being forced to decide whether they can afford to use their medical plans.

From missing an early diagnosis for a major medical issue to foregoing care for a respiratory issue that later lands an employee in the ER, these decisions are costly for families— and for employer-provided medical plans as well.

And if that wasn’t enough, people are also skimping on medications due to the rising cost of prescription drugs, which brings us to our third issue.

3. Rx is a BIG contributing factor

Three in ten Americans (about 32 million people) have been hit with price hikes on drugs they routinely take. Most consumers feel they have little to no options when facing this situation.

This pharmacy out of pocket cost driver cannot be ignored. A few things to consider:

Increasing use of specialty drugs will prove to be the fastest growing cost component in any medical plan.
Removing medications from medical plans doesn’t remove the need for that prescription.
Empowering employees with tools and education can uncover more cost-effective options.

Higher overall medical costs, coupled with soaring out of pocket spend, make it harder to care for your employees and their families. The time to accept this as the norm is over. It’s time to do better by and for everyone.

If you’re working with a forward-thinking employee benefits broker to find creative new ways to address and solve these problems, you’re on your way to being part of the solution.

Photo credit vimvertigo

Are You Working With an Insurance Salesperson or a Benefits Consultant? Here’s How to Tell.

Today’s employers are screaming for an increased ROI on their employee benefits. They want an affordable option that takes care of themselves, their families, their employees, and their businesses.

Meanwhile, healthcare costs continue to spiral and the demands on HR have become increasingly complex. This puts employers in a difficult position having to navigate some very complicated and expensive circumstances.

Is it all about cost?

Every business needs to have some degree of control over these critical factors related to benefits and employees.

The cost of the benefit/insurance program
The time demands of service issues associated with the program
Clearly defined goals for the HR/benefit/insurance efforts
Their ability to attract/retain the best talent
The level of morale and employee engagement in the organization

Historically, insurance brokers have only focused on the first two items: The cost of the program and how it will be serviced.

But as the needs of employers change, so too should the level of discussion and the range of advice your insurance consultant brings to the table.

Sales vs. Consulting

An insurance salesperson will come in talking about two main things:

The Product
The Price

They may also try to sell you on their great customer service and the power of your relationship with them and their relationship with the carriers. But this is where it ends.

An employee benefits consultant won’t come in talking at all.

And they won’t breeze in with a spreadsheet full of carriers, price points, and policy recommendations. No, a true benefits consultant will come to you with a list of questions.

In order to be able to offer ideas and advice on how to improve your business through a strategic employee benefits strategy, they need to hear from you. What are your most pressing issues? Your pain points? Those things that are not only keeping you up at night, but also keeping your business from getting where you want it to be?

Ye Olde sales pitch

“We have great relationships with the carriers! Let us give you a free insurance quote! We can beat your price!”

“Nobody provides better service than we do! We’ll be like an extension of your HR department!”

“Look at all of the ‘free stuff’ we’ll give you if you become a client!”

If you’re hearing these things, you’re probably working with a salesperson.

A new approach

True benefits consultants are much more interested in helping employers craft strategies for better alignment between HR and company goals.

Yes, they are committed to ensuring their clients have the right insurance solutions at the right price, but they also understand that insurance is just one part of the answer they must bring to their clients. These folks show up with a level of insatiable curiosity focused on uncovering what may be holding your organization back from reaching new heights.

This kind of conversation can cover anything from employee recruitment and onboarding to benefits communication to plan design to compensation structures to wellness programs and more.

The name game

Don’t be fooled by the terminology. Just because a broker refers to himself as a consultant doesn’t mean he is one. And just because a consultant refers to herself as a broker or agent doesn’t mean she’s simply swooping in for the hard sell. You’ll need to make your assessment based on the focus and level of conversation presented to you.

If it’s all about product, carriers, price, and spreadsheets – you’re probably working with a salesperson. Or a glorified distributor of carrier products.

If it’s all about you, your HR and company goals, your employees, your strategy, their process to help you with those things, and a clear distinction between the insurance carrier and their own advising services, you’re talking to a consultant.

Who would you rather work with?

A policy peddler who focuses on one year at a time or a trusted advisor who wants to help you create a long-term strategy for success?

Think about your current insurance agent. Which category does that person fall into? Is it time to take a look at some other options?

It can be daunting to think about breaking ties and starting anew. But it can also be a great opportunity for you to take your benefits, your broker, and your business to a whole new level of performance.

Photo by diplomedia