Benefits and beyond c. 3 life cycle events


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Benefits and beyond c. 3 life cycle events

  1. 1. Life Cycle Events<br />Thomas E. Murphy<br />Benefits and Beyond, C. 3<br />
  2. 2. Life Cycle Events<br />What are they?<br />How to respond?<br />These are the drivers of employer sponsored benefits.<br />Do different demographics have different events?<br />How do benefits in response to events improve productivity?<br />October 25, 2010<br />
  3. 3. What are some examples?<br />October 25, 2010<br />
  4. 4. Older employees have different needs – college tuition for kids, pension, long-term care for parents, longer vacations, what else?<br />Young and healthy don’t need a high value health care plan.<br />Workers with families need broad health care coverage.<br />Employees with pre-school age children need day care. <br />Employed spouses have their own coverage.<br />October 25, 2010<br />Strategic Value<br />
  5. 5. October 25, 2010<br />Health and Fitness<br />
  6. 6. Health problems, disability, injury<br />Chronic health conditions<br />What about “wellness,” and fitness – quality of life?<br />Can health insurance sort certain demographics of workers?<br />Marriage, birth, death, long-term care<br />Education, family protection, vacation, retirement<br />What are some examples?<br />October 25, 2010<br />
  7. 7. What are some issues?<br />A Buffet?<br />Babies and Workers<br />What and who should be covered?<br />What about face lift?<br />Should there be cost sharing?<br />Should the employer offer voluntary benefits? <br />October 25, 2010<br />
  8. 8. What are some examples?<br />Ride to work?<br />Free Diagnostic tests?<br />October 25, 2010<br />
  9. 9. Disability can lead to work disruptions, loss of productivity, extra costs.<br />Should the plan accommodate such life events?<br />What does the ADA, FMLA do in this regard?<br />Should the employer aggressively pursue workplace safety – prevention?<br />Disability pay – short term, long term?<br />Employee disabilities . . .<br />October 25, 2010<br />
  10. 10. What happens when employees confront stressful events such as divorce, death in the family, or other crises?<br />Should the employer provide a benefit here?<br />How should it be designed?<br />How would you measure its effectiveness?<br />What is an Employee Assistance Program?<br />Employee Assistance Programs . . . <br />October 25, 2010<br />
  11. 11. What about kids?<br />October 25, 2010<br />
  12. 12. Pregnancy<br />Child birth<br />Adoption<br />Time off for children issues<br />The FMLA?<br />Child Care<br />IVF? HRT?<br />October 25, 2010<br />Employees with children . . .<br />
  13. 13. Financial counseling- retirement, savings<br />English, GED training for entry level employees<br />Healthy living programs<br />October 25, 2010<br />More examples<br />
  14. 14. Some employees have significant obligations to care for ill or disabled relatives.<br />Should there be a “benefit” offered to accommodate this?<br />How does the FMLA apply?<br />What about Long Term Care for Family?<br />Design alternatives<br />Measure effectiveness<br />Caring for Sick Dependents<br />October 25, 2010<br />
  15. 15. Retirement<br />October 25, 2010<br />
  16. 16. What are the employee demographics?<br />When do employees want to retire?<br />What limits on retirement should employer impose?<br />How should employer allocate risks: longevity, investment, and inflation?<br />How should benefit be financed?<br />What about phased retirement?<br />Retirement<br />October 25, 2010<br />
  17. 17. What is the Social Security benefit and how would it complement a retirement program?<br />Should the employer provide retiree health care?<br />Should the employer facilitate counseling for retirement?<br />What HR strategy does providing a retirement plan serve?<br />What does the Mercer article say about employee loyalty and retirement?<br />Retirement<br />October 25, 2010<br />
  18. 18. Marriage<br />October 25, 2010<br />
  19. 19. Add dependents to health care?<br />Add beneficiaries to other plans?<br />What about domestic partners?<br />Job accommodations<br />What life events are a consequence of divorce?<br />Is the employer involved in a division of spousal assets? (QDRO – COBRA)<br />Marriage . . . Divorce<br />October 25, 2010<br />
  20. 20. Separation from Employment<br />You’re Fired! Sign here. <br />October 25, 2010<br />
  21. 21. Involuntary separation<br />Unemployment insurance paid by employer<br />Should employer do more?<br />What HR objective does this serve?<br />What about continuation of benefits? (COBRA, HIPAA) and possibly more?<br />What about voluntary “early retirement?”<br />Impact of PP&ACA<br />Separation<br />October 25, 2010<br />
  22. 22. Death<br />October 25, 2010<br />
  23. 23. How old is your workforce?<br />Should employer consider dependents of employee?<br />Is life insurance an appropriate benefit?<br />What about beneficiaries for a deceased retiree?<br />How should benefits be designed and evaluated?<br />Death and Benefits<br />October 25, 2010<br />
  24. 24. PTO (Paid time off)<br />October 25, 2010<br />
  25. 25. Vacation<br />How much and how soon?<br />Sick time or paid FMLA leave?<br />Can these serve the HR strategy?<br />Lumping it all in one category: “paid time off.”<br />What is relevance of Benefits Model <br />See: Credit Lyonnais<br />PTO<br />October 25, 2010<br />
  26. 26. Global Perspective<br />October 25, 2010<br />
  27. 27. Do European countries mandate better balance between work and leisure?<br />Do they work to live?<br />How is this manifested?<br />Statutory vacation, leave, and long-term care for elderly. <br />Health care not always linked to employment<br />Higher % of replacement income from SSA. <br />Global Perspective<br />October 25, 2010<br />
  28. 28. What about China and India?<br />Do they offer benefits?<br />How does this affect the cost of their products and services?<br />Why is this important?<br />October 25, 2010<br />Global<br />
  29. 29. What are your demographics?<br />What are unique lifestyles and life events of your employees?<br />Not just age, sex, economic and educational background, but also growing Asian, Muslim, Latino workforce.<br />How does offering benefits fulfill a HR strategy?<br />What are the financial returns of particular benefits at the workplace?<br />How to measure effectiveness?<br />October 25, 2010<br />
  30. 30. Can you think of other life cycle events that would create a need for an employer-sponsored benefit? <br />What role should employee have in choosing. . . <br />What about health insurance and open enrollment?<br />October 25, 2010<br />And . . . . <br />