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    WorkLife Balance WorkLife Balance Presentation Transcript

    • BENEFITS ROUNDTABLE® CORPORATE LEADERSHIP COUNCIL CORPORATE EXECUTIVE BOARD Designing and Implementing High- Impact Work–Life Programs February 2010
    • COPIES AND COPYRIGHT As always, members are welcome to an unlimited number of copies of the materials contained within this handout. Furthermore, members may copy any graphic herein for their own internal purpose. The Corporate Executive Board Company requests only that members retain the copyright mark on all pages produced. Please contact your Member Support Center at +1-866-913-6447 for any help we may provide. The pages herein are the property of The Corporate Executive Board Company. Beyond the membership, no copyrighted materials of The Corporate Executive Board Company may be reproduced without prior approval. LEGAL CAVEAT The Benefits Roundtable has worked to ensure the accuracy of the information it provides to its members. This report relies upon data obtained from many sources, however, and the Benefits Roundtable cannot guarantee the accuracy of the information or its analysis in all cases. Furthermore, the Benefits Roundtable is not engaged in rendering legal, accounting, or other professional services. Its reports should not be construed as professional advice on any particular set of facts or circumstances. Members requiring such services are advised to consult an appropriate professional. Neither The Corporate Executive Board Company nor its programs are responsible for any claims or losses that may arise from a) any errors or omissions in their reports, whether caused by the Benefits Roundtable or its sources, or b) reliance upon any recommendation made by the Benefits Roundtable.
    • 3 From the BENEFITS ROUNDTABLE® of the www.br.executiveboard.com © 2010 The Corporate Executive Board Company. All Rights Reserved. BR5555810SYN TODAY’S DISCUSSION Employee Preferences for Work–Life Benefits Context Realizing the Full Value from Work–Life Offerings Conclusion and Roundtable Resources
    • From the BENEFITS ROUNDTABLE® of the www.br.executiveboard.com © 2010 The Corporate Executive Board Company. All Rights Reserved. BR5555810SYN 4 Many organizations will need to further alter their benefits plan designs, as health care cost inflation continues to strain budgets. ■ Average health care costs will continue to increase, with an average increase in 2009 of 6.4% and projections of increases in 2010 of approximately 6.9%. ■ This continued cost pressure will require many organizations to further adjust plan designs; 48% of Roundtable members already anticipate the need to redesign plans. ■ To do so effectively, organizations must strike the right balance between achieving cost-reduction targets while doing a minimal amount of damage to the value that employees receive from their benefit plans. Even organizations that do not need to further cut costs will want to ensure they are maximizing the impact of their plans on employees. INCREASING COST REQUIRES FURTHER PLAN REDESIGN Average Health Care Cost Increases 2004 Through 2009 PercentIncrease Running Blindfolded with Scissors “This is hard. Cutting a budget isn’t hard, but cutting it in the right way is extremely hard. Our biggest problem is we have no idea what the real impact of our plan changes will be on employees. Are we cutting the wrong elements? Cutting too far? I hope not.” Senior Vice President Compensation and Benefits Fortune 100 Technology Company Benefits Roundtable Membership Top Plan Design Priorities Select Priorities for 2010 Source: Mercer Consulting. 2004 2005 2006 2007 2008 2009 7.5% 6.1% 6.1% 6.1% 6.3% 6.4% 48% 37% Cutting Costs Increasing the Value Employees Receive from Benefits
    • From the BENEFITS ROUNDTABLE® of the www.br.executiveboard.com © 2010 The Corporate Executive Board Company. All Rights Reserved. BR5555810SYN 5 Work–life balance is a key employment value proposition (EVP) element for driving attraction and commitment. ■ Work–life balance elements are the number-two driver of attraction for U.S. employees and can have a 35% impact on employee commitment; employees who are committed work 57% harder and are nine times less likely to leave. ■ As the U.S. economy improves in 2010, employers whose business also improves will need to recruit new talent and keep their existing solid performers. Even employers whose business does not improve or worsens will still need cost-effective tactics for holding on to their best talent. PREPARING FOR THE RECOVERY Respondents Rating EVP Element in Top Five for Attraction U.S. Employees Impact of Element Delivery on Commitment U.S. Employees 58% 42% 39% 39% 36% 35% 32% 26% PercentageofRespondents RatinginTopFiveforAttraction EVP Element EVP Element MaximumImpact onCommitment Compensation FutureCareer Opportunity Work–LifeBalance Work–LifeBalance Stability Compensation HealthBenefits HealthBenefits Source: Corporate Leadership Council, EVP Design Center, 2009.
    • 6 From the BENEFITS ROUNDTABLE® of the WWW.BR.EXECUTIVEBOARD.COM © 2010 The Corporate Executive Board Company. All Rights Reserved. BR5555810SYN CONJOINT SCORES DEFINED Importance Scores—These show the relative sensitivity that employees have to change in a particular benefit compared to other benefits. A higher score means that employees are relatively more sensitive to changes in the benefit. Value Scores—These show the relative value that employees perceive for different levels or characteristics within a benefit. A higher score means that employees assign that level/characteristic more value; value scores can be compared to each other. The Benefits Value Survey used conjoint preferences techniques to determine the value employees place on different benefits and different levels of those benefits. ■ Conjoint surveys require respondents to actively select which of several benefits packages is of greatest value; the different benefits packages have different designs, forcing the respondent to implicitly trade off different benefit levels. ■ The resulting scores provide more realistic assessments of employee preference than surveys that ask for preference of individual attributes in isolation; they also allow an apples-to- apples comparison among different benefits and levels of them. ■ Organizations can combine conjoint scores with actuarial costs to provide an ROI of each benefit, thereby creating a measure of return. IDENTIFYING SMART PLAN CUTS OR CHANGES Sample Conjoint Trade-Off Question Health Plan Design Module Survey Window: July 2009 CAVEAT Employee perceptions of benefits provide a critical component in making plan design decisions, and one that is often overlooked. However, there are other considerations organizations may want to take into account that are not embedded in these scores. These include: ■ Costs (can be combined with preferences to calculate returns), ■ Company philosophy, and ■ Competitiveness. n = 5,000.
    • 7 From the BENEFITS ROUNDTABLE® of the www.br.executiveboard.com © 2010 The Corporate Executive Board Company. All Rights Reserved. BR5555810SYN TODAY’S DISCUSSION Employee Preferences for Work–Life Benefits Context Realizing the Full Value from Work–Life Offerings Conclusion and Roundtable Resources
    • From the BENEFITS ROUNDTABLE® of the www.br.executiveboard.com © 2010 The Corporate Executive Board Company. All Rights Reserved. BR5555810SYN 8 VACATION IS COMPARABLE TO CASH Employee Importance Scores for Select Benefits Paid vacation is by far the most highly valued work–life benefit and is almost as important as base salary. ■ Paid vacation ranks sixth in relative importance to employees when compared to all other benefits, making it more highly valued than retirement offerings and nearly as valued as base salary. ■ Vacation’s high value score means that employees will be relatively more sensitive to changes—either cuts or enhancements—to it than to other benefits with lower scores. ■ The comparability between the value scores of paid vacation and base salary (they differ by just two points) means that the impact of base pay cuts or freezes on employee value can be at least partially mitigated by providing additional paid time off. Source: Benefits Value Survey, 2009. 58 56 51 48 24 20 19 19 19 17 13 13 12 10 9 8 BaseSalary PaidVacation Contributionto RetirementPlan Out-of-Pocket Maximum Telecommuting PersonalLeave On-SiteDaycare Vacation Carryover Limit FlexibleWork Schedule SickDays UseofPTOBank ChildcareDiscount EmergencyDaycare PaternityLeave MaternityLeave Community ServiceLeave Work–Life Benefits Non-Work–Life Benefits
    • From the BENEFITS ROUNDTABLE® of the www.br.executiveboard.com © 2010 The Corporate Executive Board Company. All Rights Reserved. BR5555810SYN 9 VACATION MATTERS MORE NOW Employee Importance Scores for Selected Work–Life Benefits 2007–2009 Paid vacation increased in importance while other work–life benefits experienced modest declines. ■ Economic uncertainty may partially explain both trends: News reports of unpaid furloughs and mandatory time off with no or reduced pay could drive employees to value the opportunity to take paid time off from work even more. ■ Similarly, concern over potential layoffs could be leading employees to want to put in more “face time” at the office, making flexible scheduling and telecommuting options less attractive. 53 55 23 19 27 24 Source: Benefits Value Survey, 2009; Benefits Value Survey, 2007. Paid Vacation Flexible Work Schedule Telecommuting 2007 2009
    • From the BENEFITS ROUNDTABLE® of the www.br.executiveboard.com © 2010 The Corporate Executive Board Company. All Rights Reserved. BR5555810SYN 10 EMPLOYEES PREFER VACATION TIME TO SICK TIME Employee Value Scores for Paid Vacation and Sick Leave Employees show a strong preference for vacation over sick time. ■ Employees generally perceive roughly two to three times as much value from paid vacation days as they do from the same number of sick days. ■ However, if only five days of paid time off were being offered, employees would rather receive sick leave than paid vacation. ■ While employees do care about having some minimally sufficient number of paid sick days as an insurance policy, the marginal change in perceived value is a lot more substantial from increasing the number of available vacation days than from sick days. ■ Employers with separate vacation and sick days that provide more than 10 sick days per year have an opportunity to improve employees’ perceived value of their time off benefits by converting some of those days to paid vacation. Source: Benefits Value Survey, 2009. 0.3 2.4 17.6 10.4 44.5 13.7 55.5 17.3 5 10 20 25 Paid Vacation Sick Leave Number of Days Offered
    • From the BENEFITS ROUNDTABLE® of the www.br.executiveboard.com © 2010 The Corporate Executive Board Company. All Rights Reserved. BR5555810SYN 11 PTO PLANS ENHANCE THE VALUE OF VACATION Employee Value Scores for Different Paid Time Off (PTO) Arrangements PTO banks that allow employees to use more of their time off for vacation increase employees’ perceived benefits value. ■ Partly as a result of employees’ preference for paid vacation over sick leave, employees also show a marked preference for consolidated paid time off (PTO) banks versus discrete vacation and sick leave amounts. Employees value the flexibility afforded to them under a PTO arrangement, since they can choose to use as much or as little of it as they would like for personal vacation/time off. ■ The good news is that this preference aligns with the existing trend for employers to move toward PTO banks: 60% of organizations have this type of arrangement. Source: Benefits Value Survey, 2009. 9 13 Separate Vacations and Sick Days Vacation and Sick Days Combined in a PTO Bank
    • From the BENEFITS ROUNDTABLE® of the www.br.executiveboard.com © 2010 The Corporate Executive Board Company. All Rights Reserved. BR5555810SYN 12 (SOME) VACATION CARRYOVER CARRIES VALUE Employee Value Scores for Different Levels of Vacation Carryover Vacation or PTO plans that allow employees to carry over unused days provide a substantial increase in value. ■ Plans allowing employees to carry over up to 10 days per year (the average amount for plans with carryover features) generate 15 points of employee value more than plans that offer no carryover provisions. ■ There are diminishing marginal returns to offering additional carryover days. Going from no carryover to 10 days creates 1.6 value points per day. However, going from 10 days to 20 days only creates 0.3 value points per day. ■ Barring any legal reasons not to do so, organizations should not allow carryover of more than 10 days per year. Source: Benefits Value Survey, 2009. 1 16 19 No Carryover Up to 10 Days a Year Up to 20 Days a Year Going from no vacation carryover to allowing up to 10 days to carryover results in a 16-fold increase in employee value… …but doubling the carryover limit to 20 days adds little incremental value.
    • From the BENEFITS ROUNDTABLE® of the www.br.executiveboard.com © 2010 The Corporate Executive Board Company. All Rights Reserved. BR5555810SYN 13 A LITTLE FLEXIBILITY GOES A LONG WAY Employee Value Scores for Different Levels of Flexible Scheduling The value employees perceive from flexible work arrangements increases as the level of flexibility increases—but only up to a point. ■ For example, allowing employees to shift or reschedule 100% of their work hours in a given week creates less value than allowing them to shift or reschedule just 25% to 50% of their work hours. ■ Similarly, allowing employees to telecommute five days per week creates slightly less value than allowing them to telecommute three or four days per week. ■ It may be that the economic climate of the past year has tempered employees’ preferences for the highest levels of flexible work arrangements; in times of uncertainty—and potential layoffs—they want to ensure they have at least some “face time” in the office. Source: Benefits Value Survey, 2009. Employee Value Scores for Different Levels of Telecommuting 3 13 14 8 1 20 24 23 100% Not Offered 1–2 Days/ Week 3–4 Days/ Week 5 Days/ Week 50%25%0% Percentage of Work Hours That Can Be Shifted, Rescheduled, or Canceled in a Given Week The bulk of the value employees perceive from flexible scheduling and telecommuting benefits comes from a relatively low level of the offering.
    • From the BENEFITS ROUNDTABLE® of the www.br.executiveboard.com © 2010 The Corporate Executive Board Company. All Rights Reserved. BR5555810SYN 14 EMPLOYEES DON’T CARE MUCH ABOUT CHILDCARE Employee Importance Scores for Work–Life Benefits Childcare benefits tend to matter less to employees, even relative to other work–life benefits. ■ However, on-site daycare is somewhat of an exception: Its employee importance score is slightly above the average for work–life benefits. ■ Organizations wanting to provide childcare assistance for reasons of competitiveness, organizational cultural, etc., should first consider on- site daycare, purely from an employee value perspective (although costs should also be evaluated). Source: Benefits Value Survey, 2009. 56 24 20 19 19 19 17 13 13 12 10 9 8 PaidVacation Telecommuting PersonalLeave On-SiteDaycare Vacation CarryoverLimit FlexibleWork Schedule SickDays UseofPTOBank ChildcareDiscount EmergencyDaycare PaternityLeave MaternityLeave Community ServiceLeave Average = 18 Childcare discounts and emergency daycare are below average in importance, even relative to other work–life benefits.
    • From the BENEFITS ROUNDTABLE® of the www.br.executiveboard.com © 2010 The Corporate Executive Board Company. All Rights Reserved. BR5555810SYN 15 15 7 18 19 Offering childcare benefits that are relatively costly for employees does not help—and may even hurt—employee value. ■ Offering an expensive ($1,000 per month) on-site daycare option to employees is worse than not offering it at all, in terms of employee value. ■ Purely from an employee value perspective, organizations that are going to offer childcare benefits should make them available at relatively low costs to employees. However, organizational culture, costs, competitiveness, or other factors should also be considered—along with the fact that even offering free on-site daycare provides only a modest increase in employee-perceived value. CHILDCARE BENEFITS THAT CREATE HIGH EMPLOYEE COSTS DON’T CREATE VALUE Employee Value Scores for Different Levels of On-Site Daycare …but even offering free on-site daycare provides only a modest increase in employee- perceived value. Going from not offering any on-site daycare to offering it at a cost of $1,000 per month for the employee results in a nearly 50% decrease in perceived value… Not Offered Offered for $1,000 per Month Offered for $500 per Month Offered at No Cost Source: Benefits Value Survey, 2009.
    • From the BENEFITS ROUNDTABLE® of the www.br.executiveboard.com © 2010 The Corporate Executive Board Company. All Rights Reserved. BR5555810SYN 16 Offering midlevel amounts of maternity and paternity leave creates the most employee value. ■ Employees prefer one month of maternity leave to two months and one month of paternity leave to three months. ■ Reducing leave amounts can generate modest improvements in employee value (although organizational culture and competitiveness should also be considered). ■ The growing presence of Generation Y employees in the workforce may be a contributing factor: Those who are less likely to use the benefit still value having a “basic” amount available, but perceive overly generous offerings to be unfair. ■ In addition, those employees who do take advantage of parental leave benefits may worry that if they are away from work for too long, they will be “forgotten.” OFFER PARENTAL LEAVE—UP TO A POINT Employee Value Scores for Different Amounts of Maternity Leave Employee Value Scores for Different Amounts of Paternity Leave 8 9 6 4 10 9 Offered as Legally Required One Month Beyond Legal Requirement Two Months Beyond Legal Requirement Not Offered One Month Three Months Employees perceive the greatest value from parental leave benefits when just one month off is made available. Source: Benefits Value Survey, 2009.
    • From the BENEFITS ROUNDTABLE® of the www.br.executiveboard.com © 2010 The Corporate Executive Board Company. All Rights Reserved. BR5555810SYN 17 1 6 14 20 Employees prefer shorter, at least partially paid leaves (for sabbaticals or eldercare) to longer, unpaid leaves. ■ For example, employees perceive up to one month of personal leave with 50% of salary as more than twice as valuable than up to three months of personal leave with no salary. ■ Employers offering unpaid leave should be mindful of the fact that employees’ concerns over lost salaries could dissuade them from taking advantage of the benefit when they really need it. MONEY, NOT TIME, MATTERS FOR PERSONAL LEAVE Employee Value Scores for Different Levels of Personal Leave Not Offered Up to Three Months with No Salary Up to One Month with 50% Salary Up to Three Months with 50% Salary ∆ = 133% Source: Benefits Value Survey, 2009.
    • From the BENEFITS ROUNDTABLE® of the www.br.executiveboard.com © 2010 The Corporate Executive Board Company. All Rights Reserved. BR5555810SYN 18 Employees place relatively little importance on time off for volunteering or community service. ■ While employers may have many reasons for wanting to provide community service leave (e.g., adhering to company values, generating goodwill in the community), they should not expect this type of benefit to have much of an impact on employees’ perceived value of their benefits package. ■ Employees prefer flexibility in their time off: Paid vacation matters more than sick leave (which can only be used when you are sick), and PTO banks (which let you use up to all of your time off for vacation) are preferred to discrete vacation and sick leave offerings. The constraints associated with many community service leave programs—such as limits on what activities can be done—likely contribute to their relatively modest impact on employee value. COMMUNITY SERVICE LEAVE GENERATES GOODWILL, BUT NOT MUCH EMPLOYEE VALUE Employee Value Scores for Different Levels of Community Service Leave 3.7 8.1 7.8 Not Offered Up to Five Days a Year Up to 10 Days a Year Source: Benefits Value Survey, 2009.
    • 19 From the BENEFITS ROUNDTABLE® of the www.br.executiveboard.com © 2010 The Corporate Executive Board Company. All Rights Reserved. BR5555810SYN TODAY’S DISCUSSION Employee Preferences for Work–Life Benefits Context Realizing the Full Value from Work–Life Offerings Conclusion and Roundtable Resources
    • From the BENEFITS ROUNDTABLE® of the www.br.executiveboard.com © 2010 The Corporate Executive Board Company. All Rights Reserved. BR5555810SYN 20 83% 50% 44% 37% 36% 36% 36% 31% 29% 27% 22% 20% 17% 15% 11% 11% Roughly 70% of employees are not aware of their employers’ work-life programs. ■ While almost all employees know about and understand their organization’s vacation or paid time off policy, most do not realize they also have access to a wide array of “non-core” work-life offerings. UNDER–UTILIZED BENEFITS Employee Awareness of Work–Life Offerings Vacation PersonalInsurance FlexibleSchedulingArrangements TelecommutingOptions CounsellingServices EmergencyLeave RemoteWorkArrangements CommunityServiceLeave OptionalWorkloadAdjustments PersonalTime ParentalLeave On-SiteDaycare ConciergeServices Part-TimeWorkOptions Job-Sharing SabbaticalLeave PercentageofEmployees AwareofOfferingandHowitWorks
    • From the BENEFITS ROUNDTABLE® of the www.br.executiveboard.com © 2010 The Corporate Executive Board Company. All Rights Reserved. BR5555810SYN 21 31%  Disagree 35%  Neutral 34%  Agree 21%  Disagree 29%  Neutral 50%  Agree Only a third of all managers promote work–life balance and benefits, leading employees to discount and under-utilize those benefits. ■ Lack of manager support leads to employee assumptions that do not promote the use of work–life programs. THE PERCEPTION OF WORK–LIFE INFLUENCES ITS USE “My Manger Promotes the Use of Work– Life Programs Offered by My Organization” Percentage of Employees Agreeing or Disagreeing “In Order to Get Ahead in This Organization Employees Should Work Long Days and Be Available All of the Time” Percentage of Employees Agreeing or Disagreeing Source: Corporate Leadership Council research.
    • From the BENEFITS ROUNDTABLE® of the www.br.executiveboard.com © 2010 The Corporate Executive Board Company. All Rights Reserved. BR5555810SYN 22 The most cost-efficient method for using work- life balance is to increase employee knowledge of these programs and change employee and manager perceptions of them. INFORM AND CONVINCE TO ACHIEVE ROI Benefits Decision Readiness Stages Knowledge: Understanding the Offering Perception: Evaluating the Offering Behavior: Using the Offering Theme “I know what benefits I need, and I know what this offering does.” “I want (to use) this offering.” “It’s worth the price right now.” Sample Benefits Objectives ■ Increase employee awareness of an offering ■ Remind employees of an upcoming date or event ■ Inform employees about a specific offering change ■ Increase employee perceived value of an offering ■ Change employee perceptions toward certain benefits ■ Increase employee participation in a benefits activity ■ Increase usage of one offering over another Information Needed ■ What is this work-life program? ■ How will it help me balance my work and personal responsibilities? ■ How well does this offering help me balance my work and personal responsibilities? ■ What are some of the specific advantages to participating in this work- life program? ■ Are there any drawbacks or costs associated with this work-life offering? ■ Why is it important for me to begin taking advantage of work-life offerings now? ■ Will the improvements in my work-life balance outweigh any drawbacks, such as decreased “face time” in the office?
    • From the BENEFITS ROUNDTABLE® of the www.br.executiveboard.com © 2010 The Corporate Executive Board Company. All Rights Reserved. BR5555810SYN 23 A RECOMMENDED COMMUNICATION STRATEGY Communication Strategy for Changing the Perception of Work–Life Benefits The Roundtable’s communication framework recommends four steps for changing employee perception. Segment communications to allow for targeted messaging, focusing on managers and key employee segments. Carefully focus content to answer “what’s in it for me.” The “what’s in it for me” should focus on diffusing the perceived risk of using the benefits as well as promoting the positive aspects of the benefits. The “what’s in it for me” should focus more on tangible examples of how productivity can be maintained, or increased, with the use of work–life programs. ■ Through communications ■ By example Use senior management as a communication source to lend credibility to the organization’s commitment to work life programs Leverage coworkers as a communication source to further promote the programs to their peers. 1 2 3 4 EMPLOYEES MANAGERS + +
    • From the BENEFITS ROUNDTABLE® of the www.br.executiveboard.com © 2010 The Corporate Executive Board Company. All Rights Reserved. BR5555810SYN 24 A SAMPLE COMMUNICATION Pearson’s Work-Life Newsletter Excerpt Pearson’s work-life newsletter emphasizes the mental and physical health benefits of taking personal time away from work. For a growing number of people, there’s a surprising antidote to those Winter Blues: winter gardening! Whether indoors or out, gardening and the nurturing of living things can improve your mood… and your health. LET IT GROW… INDOORS For many, the subtle joys of indoor gardening are the winter focus. With the ground frozen outdoors, a flowerpot can yield a world of benefits. In studies, indoor plants have been shown to reduce stress, while moderating indoor humidity and actually cleansing the air you breathe, thus reducing your chances of catching an airborne bug. Plant herbs and have the added benefit of a tasty boost to your winter menu! One word of caution: if you do bring any new plants into your home, keep them separate from your existing plants until you’re sure they’re not bringing in any unwelcome pests. To light up these dark winter nights, you could plant an amaryllis bulb. Available in a spectrum of beautiful colors at your local garden center, tend them well in a well-lighted space and you’ll have a blossoming amaryllis to lift your mid-winter spirits! PLAN NOW FOR THE SPRING One of the great delights of gardening is the anticipation of new growth and new beauty in the lengthening days to come. Therefore, you might choose to focus your energies on plans for the coming spring (it may not seem like it sometimes, but it is coming!). Go through gardening magazines for ideas you may want to try. Keep a journal of the ones you like. Read up on subjects you’re curious about: there’s always something new to learn, even for a Master Gardener. Which, incidentally, you might choose to become. Odds are a nearby college or university offers the requisite horticultural courses on flower and vegetable gardening, insect pests and plant diseases, trees and shrubs, and landscape design. Or you may prefer to expand your knowledge via the seminars offered through many township recreation departments and community college night schools. Getting together with friends in a garden book club is another nice way to combine the love of gardening with a chance for casual socializing to break up the winter doldrums. Whatever way you choose to enjoy winter gardening, you’ll find the mental and physical health benefits will surely grow on you. http://gardening.about.com THANKS FOR READING WORKLIFE WATCH. PLEASE SEND ANY FEEDBACK TO worklife@pearsoned.com PERSONAL TIME 4 JANUARY NATIONAL SOUP MONTH Now that National Gazpacho Day (December 6) and National Bouillabaisse Day (December 14) are past, you can cheer up the winter days in a month-long celebration of soup: one of the most comforting of comfort foods. Nutritious, easy to make, and as diverse as your own imagination, soup can be a quick snack or a main course (and if it’s chicken soup, a virtual medication). To plan your soup celebration, log on at soup.allrecipes.com, where you’ll find 1,250 reader-submitted soup recipes, complete with reader reviews! FEBRUARY HEART HEALTH MONTH Local chapters of the American Heart Association will celebrate throughout the month with events designed to raise awareness of heart-related health issues (as well as funds). For instance, were you aware that heart disease and stroke are the #1 and #3 killers of women today? To learn about events in your area, log onto americanheart.org and look up your local chapter under “Local Info.” MARCH NATIONAL WOMEN’S HISTORY Month The theme for this year’s celebration is “Women Change America.” Since President Carter issued the first Presidential Proclamation calling on Americans to remember women’s contribution to America, women as diverse as blues singer Ma Rainey and aviator Amelia Earhart have been honored for their role in transforming our society and continuing to move it forward. To learn more, log on to the National Women’s History Project site at nwhp.org. DID YOU KNOW?
    • 25 From the BENEFITS ROUNDTABLE® of the www.br.executiveboard.com © 2010 The Corporate Executive Board Company. All Rights Reserved. BR5555810SYN IMPLICATIONS Implications for Work–Life Benefits 1. Communicate work–life benefits to drive attraction and commitment. Particularly as the economy improves and labor markets tighten, work–life benefits will be a cost-effective way to help keep and acquire talent. Employers looking to use work–life offerings to drive attraction and commitment should use communications to emphasize benefits that are more important to employees, like paid vacation or telecommuting. 2. Offer more vacation if you have to cut pay. Since employees value paid vacation almost as much as cash compensation, the impact of base pay cuts or freezes on employee perceptions can be mitigated somewhat by offering additional paid time off, which is likely to cost the organization less. 3. Build more flexibility into vacation plans. Design elements that enhance employee control or flexibility over how much vacation to take when, such as a consolidated paid time off (PTO) bank or carryover feature, can generate substantial increases in employee value. 4. Take a closer look at parental leave benefits. While organizational culture and competitiveness also need to be considered from a standpoint of employee perceptions, many employers can safely reduce the generosity of parental leave benefits. 5. Enhance the generosity of childcare benefits—or cut them. Organizations that want to provide childcare coverage for competitive or other reasons should consider relatively more generous offerings to address employee preferences and promote utilization; low amounts of these benefits (i.e., where childcare is available but relatively expensive for the employee) can hurt employee value.
    • 26 From the BENEFITS ROUNDTABLE® of the www.br.executiveboard.com © 2010 The Corporate Executive Board Company. All Rights Reserved. BR5555810SYN TODAY’S DISCUSSION Employee Preferences for Work–Life Benefits Context Realizing the Full Value from Work–Life Offerings Conclusion and Roundtable Resources
    • 27 From the BENEFITS ROUNDTABLE® of the www.br.executiveboard.com © 2010 The Corporate Executive Board Company. All Rights Reserved. BR5555810SYN 9.3 12.7 15.5 19.8 21.5 Be Cautious of Going to $20 for Generic Drugs There are certain thresholds that employees are especially loathe to cross Generic Prescription Drug Co-Pay Employee Value $30 Co-Pay $25 Co-Pay $20 Co-Pay $15 Co-Pay $10 Co-Pay Going from a $15 co-pay for generic drugs destroys 4.3 “value points” compared to 1.7–3.4 for all other tested changes of equivalent magnitude. BENEFITS ROUNDTABLE PLAN DESIGN RESOURCES Get comprehensive and unlimited benchmarks for 10 benefits by size and industry. Identify design changes that increase perceived value or lower costs using data-driven guidance. BENCHMARK PLAN DESIGNS TARGET HIGH-RETURN DESIGN CHANGES To Access Roundtable Resources: Go to www.br.executiveboard.com. Click on the Topics tab. Click on the Plan Design Center link.1 2 3 Save time, lower consulting spend, and reduce overall benefits spend. Plan Design Benchmarking—Medical Plans Industry: All Employee Size: All Fortune 100/500: All Number of Observations: 458 Annual Deductible The chart below shows the average annual deductible for full-time employees as single enrollees in different types of medical plans. Average Annual Deductible, Employee Only $512 $927 $457 $879 $45 $417 $28 $275$215 $539 $416$485 $1,343 $1,766 All Plans Type 1 Type 2 Medical Plan Type Type 4 Type 5 Type 6 In-Network Out-of-Network Type 3 RESOURCE: PLAN DESIGN AND POLICY BENCHMARKING CENTER RESOURCE: EMPLOYEE BENEFITS PREFERENCES SERIES
    • 28 From the BENEFITS ROUNDTABLE® of the www.br.executiveboard.com © 2010 The Corporate Executive Board Company. All Rights Reserved. BR5555810SYN Key Features Target ompany fi Ta n- es e In -momen xper roups Benefits Roundtable Consulting Helping benefits executives and their teams reduce consulting costs and increase staff efficiency by providing end-to-end assistance for major projects and supporting the day-to-day management of key benefits processes BENEFITS ROUNDTABLE PLAN DESIGN RESOURCES Use our online modeling tool to evaluate your plan designs and compare plan changes. Work directly with a senior consultant or use our project plans and tools to complete your project. MODEL VALUE AND COST IMPACT NEW! GET EXECUTION SUPPORT FOR PLAN DESIGN PROJECTS To Access Roundtable Resources: Go to www.br.executiveboard.com. Click on the Topics tab. Click on the Plan Design Center link.1 2 3 Save time, lower consulting spend, and reduce overall benefits spend. RESOURCE: BENEFITS VALUE ASSESSMENT TOOL RESOURCE: DIY AND ADVICE-BASED CONSULTING Plan(s) PPO Proposal #1 PPO Proposal #2 PPO Proposal #3 Component(s) Level Value Level Value Level Value Annual Deductible $500 (single)/ $1,000 (multiple) 17.5 $625 (single)/ $1,250 (multiple) 13.3 $1,000 (single)/ $2,000 (multiple) 0.8 Health Premium Share $35 (single)/ $95 (multiple) 38.8 $75 (single)/ $150 (multiple) 28.9 $50 (single)/ $100 (multiple) 35.1 Generic Drug Co-Pay $12.50 copayment 20.7 Employee pays 15% 15.4 $22.50 copayment 14.1 Monthly 401(k) Match .75/$1 match, $200 max 46.9 .75/$1 match, $150 max 42.1 50 cents per dollar match (max of $150/month) 36.7 Paid Vacation 2 more weeks 24.7 Half a week more 7.1 1 more week 14.3 Total Value 402 354 342
    • 29 From the BENEFITS ROUNDTABLE® of the www.br.executiveboard.com © 2010 The Corporate Executive Board Company. All Rights Reserved. BR5555810SYN BENEFITS ROUNDTABLE COMMUNICATION RESOURCES Save time and reduce consulting spend by using the Roundtable’s suite of online, project support resources to develop plans and create employee benefits communications. Audit your plan’s effectiveness and get targeted recommendations to increase impact on employee benefits knowledge and decisions Define your strategy to launch high impact campaigns that achieve your benefits objectives Work directly with a senior consultant or use our project plans and tools to complete your project EVALUATE YOUR PLAN’S EFFECTIVENESS TAILOR READY-TO-USE PLAN DOCUMENTS NEW! GET EXECUTION SUPPORT FOR COMMUNICATION PROJECTS RESOURCE: BENEFITS COMMUNICATIONS AUDITOR RESOURCE: COMMUNICATION PLAN PRESENTATIONS RESOURCE: ROUNDTABLE CONSULTING SERVICES To Access Roundtable Communications Resources: Go to www.br.executiveboard.com. Click on the Topics tab. Click on the Benefits Communications link.1 2 3
    • 30 From the BENEFITS ROUNDTABLE® of the www.br.executiveboard.com © 2010 The Corporate Executive Board Company. All Rights Reserved. BR5555810SYN BENEFITS ROUNDTABLE COMMUNICATION RESOURCES To Access Roundtable Communications Resources: Go to www.br.executiveboard.com. Click on the Topics tab. Click on the Benefits Communications link.1 2 3 Ut enim ad minim veniam, quis nostrud exercita- tion ullamco laboris nisi ut aliquip ex ea commo- do consequat. Lorem ipsum dolor sit amet, con- sectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aut e irur e dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla p ariat ur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Thir d-level Head Lorem ipsum dolor sit amet, consectetur adipisic- ing elit, sed do eiusmod tempor incididunt ut Secondary Head Lorem ipsum dolor sit amet, consectetur adipisic- ing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit e sse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. For e xample , dolor in r eprehenderit in volup- tat e velit esse cillum dolore eu fugiat nulla pariat ur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipisic- ing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip e x ea commodo consequat. Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magnaliquip e x ea commodo c onsequat. Duis aute irure dolor in reprehenderit in volup- tate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia, incididunt ut labore et dolore magna aliqua. 3 Excepteur sint occaecat cupi- datat non proident, sunt in culpa qui officia deserunt lit Pull quote goes here and here and here. Pull quote goes here Use simple pictures and illustrations to break up the look of “heavy” text and make the brochure more inviting. Use examples to answer the “how does this affect me” question. Use two column layout. Use bright colors to give the impression of simplicity. 49% 31% 20% 2 Secondary Head Lorem ipsum dolor sit amet, consectetur adipisic- ing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit e sse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum: Duis aute irure dolor Excepteur Occaecat cupidatat non proident Sunt in culpa qui officia Lorem ipsum dolor sit amet, consectetur adipisic- ing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis no strud e xercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irur e dolor in r eprehenderit. Main Head Goes Here Use bullets to simplify messages. Rephrase paragraph text when necessary. Third-level Head Lorem ipsum dolor sit amet, consectetur adip- isicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullam- co laboris nisi ut aliquip ex ea commodo conse- quat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. esse cillum dolore eu fugiat nulla pariatur. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eius- mod t empor incididunt ut labore et dolore magna aliqua. Ut enim ad minim v eniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. datat non proident, sunt in culpa qui officia deserunt mol- lit anim id est laborum. Low (under 10%) Medium (10–30%) High (over 30%) Sample of a Bar Chart Title of chart goes here 40% 30% 20% 10% Use a variety of headers to break up text. Vary the color of headers by level to add interest. Use charts and graphs to reinforce messages. Keep labels simple and use data relevant to your audience. For example, if average salary is $30,000, don’t use $75,000 in an example. Jump-start the communications creation process by drawing upon content and layout ideas used by your peers Use professionally designed templates, ready to “cut and paste” text, and formatting advice proven to be effective Work directly with a senior consultant or use our project plans and tools to complete your project REVIEW SAMPLE COMMUNICATIONS FROM PEERS BUILD CUSTOM COMMUNICATIONS MATERIALS NEW! GET EXECUTION SUPPORT FOR COMMUNICATION PROJECTS Save time and reduce consulting spend by using the Roundtable’s suite of online, project support resources to develop plans and create employee benefits communications. RESOURCE: SAMPLE COMMUNICATIONS LIBRARY RESOURCE: COMMUNICATIONS BUILDER RESOURCE: ROUNDTABLE CONSULTING SERVICES
    • BENEFITS ROUNDTABLE® CORPORATE LEADERSHIP COUNCIL CORPORATE EXECUTIVE BOARD © 2010 The Corporate Executive Board Company. All Rights Reserved. BR5555810SYN For more information: Catherine Choe Senior Director, Benefits Roundtable +1-571-303-6989 choec@executiveboard.com