Shattering the Benefits Mold Dave Marini, DVP Strategic Advisory Services Bernadette Nace, VP,...

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Shattering the Benefits MoldDave Marini, Bernadette Nace & Mary Schafer


Today’s Discussion• HCM Strategic Services:

Overview

• HCM Landscape: The 4Cs

• Benefits as a Value Prop: HowEmployers Are Responding

• Managing Perception: BenefitsCommunications


HCM Strategic Services: Who We Are

Strategic Advisory Services – Strategy and Insights• HR Strategy and

Business Analytics

• HR / Payroll Service Delivery

• Workforce Management

• Talent ManagementInsights to

Action

Action

Insights and Expertise

Professional Services – Execution and Delivery• Service Delivery

• Communications

• Change Management

• Compliance Audits

• Client-Side Implementation

• Staff Augmentation

• Technical Documentation

• Process Optimization

• Benefits and Total Rewards

• Compliance and Regulatory Affairs

• Communications and Preparing forChange

• Business Case for Change


HCM Strategic ServicesDavid P. MariniDivision VP

Strategic Advisory Services

John HaslingerVP Compliance &Health Care Reform

Elena RedlichVP Global Payroll

Linda MottVP Service Delivery

Christopher RyanVP StrategicResearch & Global

Bart TurneyVP Public Sector/Best Practices

Sushma TripathiVP Workforce Planning

Professional Services

Mary SchaferVP Communications

David MeckleDir Communications

Susan HanoldVP TalentManagement

Julianne BonvinoExec Administrator

Sharon DeadwylerAnalyst

Jane SmithVP BusinessProcessOptimization

Bernadette NaceVP ChangeManagement

OpenVP Compliance

SpecializedProject Team




The HCM Landscape


Controlling Costs Impacts Everything• Workforce Management

- Engaged workforce = increased productivity and retention- Time and labor; overtime

• Health/Retirement/Benefits Administration- Consumerism; move to CDHP requires better communication- Self-insured- Defined Contribution

• HR Service Delivery Model- Insource or outsource- Integrated or stand-alone


Compliance – It’s Complicated• Forcing integration of HR

service: driving HR and Financeto work together

• ACA: Time, payroll, benefits,absence, HR data

• Security and privacy concerns• Updates on State and Federal

Legislation

•

What’s your strategy for keeping upwith all the regulations?

• COBRA and nondiscrimination• DOL required notices• Interacting with

Exchanges/Marketplaces• Required Federal Reporting

(i.e., Forms 1095-C and 1094-C,etc.)

• Appealing and reconciling withfederal penalty assessments

• Paying penalties as required


Consumer-Directed Employment• Employee expectation: want and expect

a consumer-like retail experience at work• CDHP, Wellness, Spending Accounts• Mobile to manage everything• Pay, time off, benefits: all-in-one

experience• Communication and education• Voluntary benefits; employee access to

public health careWhat’s your consumerism change managementstrategy? Do you have a communications plan?


Culture – the Real Bottom Line• What’s your employer brand? It matters.• Is your organization seen as a great place

to work?• With social media, word gets around fast!• Benefits:

- Indicator of how a company valuesemployees

- Effects recruiting and retention• Talent Management: is it aligned to

business outcomes?• Data Analytics: measuring outcomes is

criticalCompany culture impacts the solution you choose.


Bernadette NaceBenefits as a Value Prop: How Employers Are Responding


The Role of Employer Benefits

$23.25

$10.70

Average Hourly Rate in the United States

Source: Bureau of Labor Statistics: U.S. Department of Labor; March 2016.

Compensation

Benefits


How Benefits Have Evolved

Of job candidatesreport benefits and

perks are among theirtop considerations

before accepting a job

57%Of workers would prefer new

or additional benefits to apay increase

80%

… and 71% of employees consider work to be the foundation of their financial safety nets

Of those aged 18 to 34would prefer benefitsover pay versus 70%

for those aged 45 to 54and 66% of those aged

55 to 64

90%

Source: Harris Poll for Glassdoor, December 2015.



Top 5 pieces ofinformation job seekerswant employers toprovide as theyresearch where to work:

1. Details on compensation packages

2. Details on benefits packages

3. Basic company information

4. Details on what makes the company anattractive place to work

5. Company mission, vision, and values


Health Care Is a Top Priority for Employers

0% 10% 20% 30% 40% 50% 60% 70%

Managing benefits with the current level of HRresources

Educating employees about the impact of HealthCare Reform

Retaining the skills and talent we need

Keeping benefits competitive

Hiring the skills and talent we need

Understanding ACA's impact

Increased health care costs

Source: ADP Research Institute®


The Challenge: Striking a Balance!

Compliance AdministrativeBurden

ControlledCosts

EmployeeEngagement/

CandidatePerceptions


Early Interventions …• Implement consumer-driven health plans• Shift costs to employees• Employ more rigor regarding who to cover• Outsource benefits administration• Focus on wellness


Newest Trend

• Focus on what employees VALUE- Shift in plan design- Offer more non-medical benefits- Take a personalized approach


Liken the Benefits Experience to a New CarPurchase …


Trend Toward Non-Medical Benefits

Source: MetLife 14th Annual U.S. Employee Benefit Trends Study, YEAR?


Customizing options …

Source: Mercer National Survey of Employer Sponsored Health Plans, 2016.


Telemedicine Is a Fast-Growing Trend

Source: Mercer National Survey of Employer Sponsored Health Plans, 2016.


Student Loan Repayment Benefit IsGaining Popularity

Percent of college graduates who saythat all things being equal, their choice

to take a job would be decided, based onan employer’s willingness to offer a

student loan repayment program

76%

Source: American Student Assistance’s “Life Delayed” Survey, 2016.


Thinking Outside the Benefits Box

BitSol Solutions –Manchester England

Offers Paw-ternity leave –paid time off to take care of

their four-leggeddependents

Boxed WholesaleWill pay $20,000 toward

the cost of an employee’swedding!

Umpqua Regional BankOffers $1,000 shoppingloans, repaid through

payroll deductions


Mary SchaferMaximizing Perception: Benefits Communications


Impactful Benefits Communications:Where to Start?

Start With a Plan

1. Goals and Objectives

2. Target Audiences

3. Key Messages

4. Communications Vehicles

5. Tactics and Deliverables

6. Measurement

Understand What Works Launch a MultiprongedApproach

• Remember the Rule of 7• (Also, people don’t read)• Get creative with imagery

and messaging• Tap into:

ü Videoü Infographicsü Mobileü Gamificationü Explanimation

People remember …

CK4

CK4 Font size seems smallCarol Kanarkowski, 3/17/2017


Infographic Sample


Make It Human


Make It Relevant


Make It Relatable


Make It Grab Attention


Make It Creative


https://videoondemand.adp.com/media/CDHP+Medical+Plan/1_vf3xjxsa

Benefit Guide (content reduced by50% from previous year)

Newsletter

Graphics for New User ExperienceEmails

Make It Consistent


Summary

• Benefits is evolving

• Looking at benefits holistically is critical

• Enhancing the employee experience

• Breakthrough communications to support

perception of benefits offerings, participation, and

engagement

Shattering the Benefits Mold Dave Marini, DVP Strategic Advisory Services Bernadette Nace, VP,...

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