benefits and beyond c. 3 life cycle events
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Life Cycle Events Thomas E. Murphy
Benefits and Beyond, C. 3
Life Cycle Events
What are they? How to respond?
These are the drivers of employer sponsored benefits.
Do different demographics have different events?
How do benefits in response to events improve productivity?
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What are some examples?
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Older employees have different needs – college tuition for kids, pension, long-term care for parents, longer vacations, what else?
Young and healthy don’t need a high value health care plan.
Workers with families need broad health care coverage.
Employees with pre-school age children need day care.
Employed spouses have their own coverage.
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Strategic Value
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Health and Fitness
Health problems, disability, injury Chronic health conditions What about “wellness,” and fitness – quality
of life? Can health insurance sort certain
demographics of workers? Marriage, birth, death, long-term care Education, family protection, vacation,
retirement
What are some examples?
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What are some issues?
A Buffet? Babies and Workers
What and who should be covered?
What about face lift? Should there be cost
sharing? Should the employer
offer voluntary benefits?
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What are some examples?
Ride to work? Free Diagnostic tests?
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Disability can lead to work disruptions, loss of productivity, extra costs.
Should the plan accommodate such life events?
What does the ADA, FMLA do in this regard? Should the employer aggressively pursue
workplace safety – prevention? Disability pay – short term, long term?
Employee disabilities . . .
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What happens when employees confront stressful events such as divorce, death in the family, or other crises?
Should the employer provide a benefit here? How should it be designed? How would you measure its effectiveness? What is an Employee Assistance Program?
Employee Assistance Programs . . .
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What about kids?
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Pregnancy Child birth Adoption Time off for
children issues The FMLA? Child Care IVF? HRT?
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Employees with children . . .
Financial counseling- retirement, savings
English, GED training for entry level employees
Healthy living programs
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More examples
Some employees have significant obligations to care for ill or disabled relatives.
Should there be a “benefit” offered to accommodate this?
How does the FMLA apply? What about Long Term Care for Family? Design alternatives Measure effectiveness
Caring for Sick Dependents
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Retirement
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What are the employee demographics? When do employees want to retire? What limits on retirement should employer
impose? How should employer allocate risks:
longevity, investment, and inflation? How should benefit be financed? What about phased retirement?
Retirement
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What is the Social Security benefit and how would it complement a retirement program?
Should the employer provide retiree health care?
Should the employer facilitate counseling for retirement?
What HR strategy does providing a retirement plan serve?
What does the Mercer article say about employee loyalty and retirement?
Retirement
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Marriage
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Add dependents to health care? Add beneficiaries to other plans? What about domestic partners? Job accommodations What life events are a consequence of
divorce? Is the employer involved in a division of
spousal assets? (QDRO – COBRA)
Marriage . . . Divorce
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Separation from Employment
You’re Fired! Sign here.
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Involuntary separation Unemployment insurance paid by employer Should employer do more? What HR objective does this serve? What about continuation of benefits?
(COBRA, HIPAA) and possibly more? What about voluntary “early retirement?” Impact of PP&ACA
Separation
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Death
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How old is your workforce? Should employer consider dependents of
employee? Is life insurance an appropriate benefit? What about beneficiaries for a deceased
retiree? How should benefits be designed and
evaluated?
Death and Benefits
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PTO (Paid time off)
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Vacation How much and how soon? Sick time or paid FMLA leave? Can these serve the HR strategy? Lumping it all in one category: “paid time
off.” What is relevance of Benefits Model See: Credit Lyonnais
PTO
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Global Perspective
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Do European countries mandate better balance between work and leisure?
Do they work to live? How is this manifested? Statutory vacation, leave, and long-term
care for elderly. Health care not always linked to
employment Higher % of replacement income from SSA.
Global Perspective
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What about China and India?
Do they offer benefits?
How does this affect the cost of their products and services?
Why is this important?
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Global
What are your demographics? What are unique lifestyles and life events of
your employees? Not just age, sex, economic and educational
background, but also growing Asian, Muslim, Latino workforce.
How does offering benefits fulfill a HR strategy?
What are the financial returns of particular benefits at the workplace?
How to measure effectiveness?
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Can you think of other life cycle events that would create a need for an employer-sponsored benefit?
What role should employee have in choosing. . .
What about health insurance and open enrollment?
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And . . . .