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Talent Acquisition and Retention: Making Data-Driven DecisionsJohn Rutledge, SVP, Assurance
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Today’s Program Current Challenges
What Employees Really Want
Staffing Industry Data
Benefits Plan Strategies
Importance of Communication & Technology
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Introduction
Use of datafor decisions
Expanding the candidate
pool
Disconnect on employee
wants
Impact of the ACA
New industry perspective
Applies toboth internal &
temp
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List of Research and Data Sources
Surveys and Research
SHRM Adecco U.S. Willis Towers Watson –Emerging Trends
Jellyvision Colonial Life
AMN/Staffcare Gallup Research Clutch Small Business HR Survey
Pew Research Brandon Hall Group
Robert Half U.S. Aberdeen MetLife – Employee Benefit Trends Survey
Monster.com Thomsons Online Benefits
Glassdoor – Employee Confidence Survey
Mercer Consulting Palmer Forecast Benefit Focus 2017 ALEX Benefits Communication Survey
Bullhorn WorldatWork MRINetwork Telehealth Index: Employer Benchmark Survey
Fractl – Survey of U.S. Workers
Businessolver LIMRA Price Waterhouse Cooper Centre for Generational Kinetics
Harris Poll One Medical Group Eastbridge Mediums.com Communication Partners, Inc.
ADP Paychex American Institute of CPAs Rainmakerthinking.com
PlanSource DeLoitte Millennial Survey HealthCare Cost Institute Devnir Research
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Publications and News Sources
Staffing Industry Analysts LA Times ASA Staffing TODAY
Employee Benefits Adviser Moody’s Analytics Wall Street Journal
HealthLeaders Media HR Executive Employee Benefit News
The New York Times Kaiser Health News CNBC.com
Reuters MarketWatch American Staffing Association – “Turnover and Tenure”
List of Research and Data Sources
Government and Nonprofit Data Sources
U.S. Department of Labor HealthCare Cost Institute
Royal Swedish Academy of Sciences U.S. Bureau of Labor Statistics
Employee Benefit Research Institute California Office of Labor Standards Enforcement
Kaiser Family Foundation
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Industry Challenges
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Today’s Business Environment
3.5%unemployment
rate++ 59%
receive multiple job offers
3main decision
factors
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» Pressure to pay higher wages and offer more benefits
» The vast majority of employers offer employee benefits» 90% of firms with an HR department offer benefits
» 64% of those with some HR resources do offer benefits
» Small businesses are impacted the most (WSJ)» This is one recruiting field for staffing
Today’s Business Environment
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» Turnover is an important stat for staffing » Lower turnover/longer tenure means improved margins and vice versa
» ASA Research shows turnover decreased 2000 – 2013 and has been increasing since – 420% in 2018; up from 386% in 2017
» 27% of private-sector employees switched jobs in 2018
» 25% of employees are looking for a new job at any given time
Turnover
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Competition From Other Sectors
Improved Health Benefits More Benefit Choices Flexible Schedules More Paid Time Off
Financial Planning College Loan Repayment Benefits Communication
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What Employees Want
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» Four prominent and different generations: » Boomers
» Gen X
» Millennials
» Gen Z
» Each generation has its priorities and wants
» Important to understand your workforce’s demographics
Today’s Diverse & Changing Workforce
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» Concerned about insufficient retirement funds & working longer
» Most use technology but also like telephonic support
» Cost of healthcare and long-term care is high on their list
Baby Boomers: Our Data Says…
27%
Workforce Total
Baby Boomers Gen X Millennials Gen Z
Baby Boomers
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» Personal finance is #1
» Less money towards savings
» Prefer communicating through email and telephone
» Choice of medical, dental and supplemental benefits are key
Generation X: Our Data Says…
21%
Workforce Total
Baby Boomers Gen X Millennials Gen Z
Gen X
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» Benefits are extremely important
» Prefer online, texting, in-person or telephone enrollment
» Want inexpensive medical plans
Millennials: Our Data Says…
44%
Workforce Total
Baby Boomers Gen X Millennials Gen Z
Millennials
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» Concerned about student loan debt
» Remote work settings & non-traditional work arrangements
» Social media, online portals, texting and infographics are preferred when onboarding & communicating
» Wellness & prevention plans key
Generation Z: Our Data Says…
8%
Workforce Total
Baby Boomers Gen X Millennials Gen Z
Gen Z
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» Only 18% of employers think a top challenge is creating an inclusive environment (and benefits) for all generations
» 40% of U.S. households don’t have $400 for a deductible» Average out-of-pocket expense is now $4,700
» #2 household expense in the U.S. is healthcare
» >70% of temp candidates asked about benefits at job fairs
Non-Generational Issues
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» Benefits are preferred over higher salary w/no benefits » 89% of candidates consider health insurance a deal breaker
» 80% of candidates choose additional benefits over a pay raise (Glassdoor Confidence Survey)
YET
» 77% of executives think pay is candidates’ top concern (Adecco USA
Non-Generational Issues (cont.)
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» What do workers weigh most in deciding to stay or take a new job?Employees willing to pay 100% of the cost of many benefits if available (Mercer survey)
Non-Generational Issues (cont.)
40%
48%
48%
50%
51%
53%
54%
61%
Profit Sharing
Paid Leave
Non-Medical Benefits (Dental,…
Retirement
Flextime
Paid Vacation
More Pay
Health Insurance
0% 10% 20% 30% 40% 50% 60% 70%
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The Appeal of Certain Benefits
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Staffing Industry Data
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» ASA Staffing Today – ASA Workforce Monitor» Pay not number #1
» Not as important as schedule
» U.S. Government Accountability Report» 30%-40% of the workforce classify themselves as contingent
» Only 11% of workers are willing to even consider a position without health insurance
What Does the Data Say About Staffing?
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» Demographics of temporary workers (U.S. Bureau of Labor Statistics)
» Temporary workers are generally younger than other contingent workers and those in traditional employment.
» Temporary workers are less likely than traditional workers to have attended college – although about half have at least 1 year of college compared to 2/3 for other types of workers.
» 46% of temporary workers would prefer a traditional job
What Does the Data Say About Staffing? (cont.)
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Benefit Plan Strategies
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» Implementing Executive Medical Reimbursement plan
» Conducting a demographic analysis
» Thinking “benefits” instead of ACA
» Looking at the new generation of low-cost, no-deductible health plans or improving current MEC plan and renaming it
» Providing the right options
Things to Consider
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» Include benefits info in all job postings and social media» Studies prove workers place benefits above pay
» Communicate and enroll during onboarding» 56% of workers say a company’s culture is valued more than salary
» Onboarding is a critical time in the employment relationship to communicate culture and key messages
» Studies show onboarding impacts engagement and tenure
Things to Consider
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Expand Your Candidate Pool
Use auto-texting to verify coverage
& more
Communicate & enroll during
onboarding
Reduce papercommunications; use technology
Give benefits prominence & educate staff
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» Convert current MEC plans into new low-cost, no-deductible plans and drop terms like “MEC” and turn into a MEC “Plus”
» More valued than deductible or indemnity plans» Lets employees know their cost of every covered service» Add coverage for doctor office visits with copays» Add Rx with copays and perhaps embedded life insurance» Add Telehealth benefits (offered by over 1/3 of all employers)
» Understand the difference between health insurance and indemnity insurance
» Use indemnity plans to supplement health insurance, not as the primary product
» Provide options – think packages
Improving MEC Plans at Little or No Cost
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ACA-Compliant Plan Your Health Insurance Plan
Coverage MEC Plan Basic Health Plan
Preventive Services 100% 100%
Doctor Office Visits $25 copay
Generic Rx $15 copay
Deductible No deductible
Your Weekly Deduction $17.50 $19.50
Messaging: Which Looks Better?
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» Don’t pay more» Cost of enhanced MEC benefits within normal cost charged for most MECs
» Studies show employees will pay for benefits that meet their needs
» Consider where you invest compensation money» In downtimes, pay becomes more important
» In good times, benefits rise in importance
» $1 invested in benefits generates more profit compared to $1 in payroll• Benefits do not carry payroll burden – average 14% more
• Some benefits can be done on a pre-tax basis which saves you over 7.5%
» Make a small contribution toward a low-cost medical option
Managing Profitability
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Communication & Technology
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3 Main Types of Learners
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» Start at the recruiting process
» Incorporate into onboarding
» Use multiple communication media: print, internet, video, social media, mobile apps, infographics, telephonic/in-person
» Consider outsourcing benefits administration
» Consider “Total Reward Statements”
Communicate, Communicate, Communicate
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» Enrollment communication » Get rid of paper and use technology
» Keep messages simple
» Make whatever enrollment method you use mandatory
» Turn to internet-based options and self-service
» Use free or inexpensive forms of communication
Communicate, Communicate, Communicate
<20 avg. time choosing
benefits
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» Better communication = better employee experiences = higher engagement
» Outbound communications more effective for a decentralized workforce
» Recommendations from Thaler’s research include:• Mandate choices – opt out is better than opt in• Make it simple – packaged options work• Ensure frequency – ongoing auto-texting• Provide decision support• Offer easy access to benefits information via technology
Communicate, Communicate, Communicate
Richard Thaler, Nobel Prize Winner in Economics, 2017
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» Allowed by IRS in 2002 Revenue Ruling
» Widely used for 401(k) and disability» Over 30% of employees refuse a free 401(k) if opting in
» High persistency rate & improves satisfaction
» Captures 100% offer of coverage for the ACA
» Streamlines administration
*Even though the DOL states ERISA preempts state withholding laws, still get employee consent during onboarding
Switch to Default Enrollment With Opt-Out
45% employees
prefer
55% Millennials
prefer
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» Why?» 76% of candidates expect to be able to apply, receive feedback and
get communications electronically
» Make use of texting» Texting had a 99% open rate compared to email’s 8%
» Texting had a 37% response rate compared to emails 2% (Staffing Tec)
» Should not be subject to TCPA/CTIA opt-in requirements
» Look for options that include call center support
Leveraging Technology“BenAdmin” (Benefits Administration)
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Leveraging BenAdmin Technology *
What can be automated?
Applications, skills inventories, etc.
Eligibility and eligibility changes *
Offers of coverage*
Enrollment/waivers*
Payroll integration to automate deductions*
Transmitting enrollment to insurance carriers*
Employee benefits self-service*
Benefits communications*
ACA reporting data*
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Next Steps
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» Look for ways to beef up medical benefits without adding cost
» Drop MEC and other ACA terms
» Have your broker benchmark your plans
» Make sure you have options that will appeal to your workforce» Have your broker do a demographic analysis
» Enlist help from your broker in creating effective communications
» Highlight benefits in job postings, website and social media
» Review your onboarding process to maximize its impact
» Use BenAdmin technology to communicate, enroll and manage benefits
What’s Next?
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Let’s Chat. Contact Us.
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List of Research and Data Sources
Surveys and Research
SHRM Adecco U.S. Willis Towers Watson –Emerging Trends
Jellyvision Colonial Life
AMN/Staffcare Gallup Research Clutch Small Business HR Survey
Pew Research Brandon Hall Group
Robert Half U.S. Aberdeen MetLife – Employee Benefit Trends Survey
Monster.com Thomsons Online Benefits
Glassdoor – Employee Confidence Survey
Mercer Consulting Palmer Forecast Benefit Focus 2017 ALEX Benefits Communication Survey
Bullhorn WorldatWork MRINetwork Telehealth Index: Employer Benchmark Survey
Fractl – Survey of U.S. Workers
Businessolver LIMRA Price Waterhouse Cooper Centre for Generational Kinetics
Harris Poll One Medical Group Eastbridge Mediums.com Communication Partners, Inc.
ADP Paychex American Institute of CPAs Rainmakerthinking.com
PlanSource DeLoitte Millennial Survey HealthCare Cost Institute Devnir Research
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Publications and News Sources
Staffing Industry Analysts LA Times ASA Staffing TODAY
Employee Benefits Adviser Moody’s Analytics Wall Street Journal
HealthLeaders Media HR Executive Employee Benefit News
The New York Times Kaiser Health News CNBC.com
Reuters MarketWatch American Staffing Association – “Turnover and Tenure”
List of Research and Data Sources
Government and Non-Profit Data Sources
U.S. Department of Labor HealthCare Cost Institute
Royal Swedish Academy of Sciences U.S. Bureau of Labor Statistics
Employee Benefit Research Institute California Office of Labor Standards Enforcement
Kaiser Family Foundation
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Coming Next:
ADA Compliance and Staffing WebsitesWednesday, October 30 at 2 PM ET
Staffing World 2019 RecapThursday, November 14 at 2 PM ET
Reserve your seat: www.lunchwithhaley.com