Robert Hess and Company

Managing Stress

admin — Wed, 23 May 2012 18:06:00 +0000

The harsh realities of today’s economy means we all are expected to do more with less, both on the job and at home. How can companies help their employees cope with increased stress? In the past emphasis has been placed on individual stress management, often focused on reaction to a singular event.

One alternative is stress resilience. It involves a new mindset, “looking for a way to build stress into a normal life as opposed to keeping it away from the normal life.” Stress resilience helps individuals anticipate stress and how to respond. This helps them stay calm and better able to mitigate the stress. Yoga and other calming tools replace the fight-or-flight model.

Another approach promotes building capacity for stress. This requires managing energy rather than time. Providing opportunities for renewal is crucial, whether that be deep breathing exercises, taking a walk outdoors, calling a supporter or loved one, or taking 5 minutes to listen to music. This renewal then helps funnel and renew energy into high performance.

Unfortunately, often the workplace has worn down its employees. Policy and personnel changes, benefits and salary cuts, increased workloads, layoffs, longer hours, increased insurance cost-sharing – all have added to employee stress. Helping employees have some control, such as flexible work schedules, can help. Also, organizing a lunch-time walking group or yoga sessions can be beneficial. Employers need to show they care.

From Employee Benefit News, January 2012 issue, pp. 10-11.

Adapting Safety Programs for the Aging Workforce

admin — Wed, 23 May 2012 18:04:47 +0000

“The health and safety of the rapidly growing number of older U.S. workers demand employer attention to reduce injury-related losses. . . . Health care costs, workers compensation spending and worker productivity are factors employers must consider as the nation’s population and its workforce age.”

U.S. workers aged 55 and older numbered about 15 million in 1988, approximately 18% of the nation’s workforce. That number increased to 28 million in 2008 and is expected to swell to nearly 40 million by 2018, nearly 25% of the workforce, when all of the baby boomers will be 54 or older.

People are working longer for a variety of reasons. First, adults are living longer and are healthier than previous generations. Financial considerations are also a significant factor, whether because retirement preparations are inadequate or because of increasing medical costs. Companies benefit from mature workers’ knowledge and experience.

The physical condition of older employees, such as deterioration caused either by age or chronic disease, can affect how they respond to potential workplace hazards. While older workers are less likely to suffer workplace injuries, it takes longer for them to return to work if they are injured. Better lighting, slip-resistant floors and chronic disease management programs benefit workers of all ages, and are well worth the investment. Job duties may be modified as workers age to reduce overhead lifting or other repetitive motions. Stretching routines before starting a work shift may reduce injuries and claims.

From Business Insurance, April 9, 2012 issue, pp. 3-4.

Effective steps for reducing accidents, injuries involving older workers:

Vision

Screen for vision impairment

Provide adequate levels of light

Consider the size of signs, controls and displays

Use color contrast in signs to help identify potential hazards

Hearing

Screen for hearing loss

Minimize exposure to loud noise

Minimize background noise

Cognitive Ability

Minimize tasks requiring quick decisions

Reduce distractions and simultaneous demands

Provide opportunities for practice and time to develop task familiarity

Movement Control

Minimize tasks that require quick reactions

Allow additional time to perform manual tasks

Consider good ergonomic design by limiting the number and weight of lifting tasks

Install skid-resistant material for flooring and stair treads

Based on tips from the American Society of Safety Engineers and the National Safety Council. Quoted from Business Insurance, April 9, 2012 issue, Work Place Safety Poster.

Revisions to Health Care Reform’s Summary of Benefits and Coverage

admin — Tue, 27 Mar 2012 17:18:07 +0000

Group health plans are required to provide a Summary of Benefits and Coverage (“SBC”). They were to have been required by March 23, 2012. However, final rules now require the SBC to be distributed to employees for plan years that begin on or after September 23, 2012. For example, if a plan year begins on January 1, 2013 and open enrollment is from October 1-November 1, the SBC must be available by October 1.

The SBC will have specific important questions enrollees may have, the answer, and explanations about why this matters. Another section will outline common medical events, services which may be needed related to that event, costs for each service and any limitations/exceptions.

Information about two specific situations must be included: having a baby and managing Type 2 diabetes. For each example, employers will need to use a government provided number for the amount owed to the providers. The company then can fill in how much the employee and the plan would pay. Other sample care costs, such as initial office visits, radiology, lab tests and hospital charges, must be added. At the bottom of each example, under the heading “You Pay,” dollar figures would have to be provided on deductibles, copayments, coinsurance, and limits or exclusions. The requirement to include a third example, the cost of treating breast cancer, was dropped.

The new regulations also make clear that new employees do not have to receive paper SBCs for every plan into which they may be eligible to enroll. Instead they may be viewed (or downloaded) electronically. For existing employees, the SBC will only need to be provided for the plan s/he is in. However, an electronic link must be given to view other available plans. Employees can request paper copies.

Although many insurers plan to provide SBC brochures, the Department of Labor has provided a template for employers to generate their own SBCs. It is available at www.dol.gov/ebsa/pdf/SBCtemplate.pdf.

From Business Insurance, August 22, 2011 issue, pp. 4 and 21, and February 13, 2012 issue, pp. 4 and 18.

Communicating Benefits with Technology

admin — Tue, 27 Mar 2012 17:16:28 +0000

Social media and other tools are changing the way we communicate with the world. Some companies are embracing these tools to engage employees in health and benefits decisions. One such company (which administers benefits for 550,000 employees, retirees and dependents) decided to cut back on their printed publications, kept some key mailings, but expanded its reach through email, YouTube videos and Facebook postings. It reported that one result showed increased use of generic drugs, saving money for both employees and the company.

Besides email and intranet communication, how else can employers effectively communicate with and engage employees?

Social media can be very helpful getting people to join together for a common goal, even if they are geographically diverse. Fitness “teams” don’t have to live/work nearby in order to participate.

Blogs are a great way to educate people by giving small amounts of information over time. Various vendors and carriers have content available online to help get one started.

Video clips can be made with many smart phones and are easy to post. Perhaps someone from HR can walk around, talking to various people about a subject. Employees may be interested in what their colleagues are thinking and saying.

Games can be created to provide both education and entertainment. A texting game may require employees to “scavenge” key information about their benefit plan.

Quick response code readers are commonly available as smart phone apps. Add codes to printed materials so interested employees can receive additional product information or coupons, for example.

Text messages are great tools for reminders or reiterating information which has already been given out. However, they are not practical for introducing large changes.

From Business Insurance, February 13, 2012 issue, pp. 9-11.

Raising the Security Bar

admin — Tue, 27 Mar 2012 17:14:43 +0000

There is no way for companies to completely eliminate the risk of data breaches and cyber attacks. However, there are steps they can take to reduce potential losses, and they aren’t terribly expensive or terribly difficult.

First, involve leaders from different departments (e.g. information technology, risk management, legal, finance, human resources, marketing or public relations) for discussions on cyber liability issues. If possible, involve third party business partners and vendors as well.

Prepare an organized and comprehensive data breach response plan, including individual and departmental responsibilities. The team must respond quickly to mitigate damages. Include plans for public relations, as reputational harm may prove more costly than direct financial losses.

Evaluate the data collected and stored on your system. If there is a lot of information collected but never actually used, consider getting rid of it. It poses a 100% risk with a 0% value.

From Business Insurance, March 12, 2012 issue, pp. 4 and 18.

Obesity Problems and Workers’ Compensation

admin — Tue, 27 Mar 2012 17:13:27 +0000

The obesity epidemic in this country presents difficult workers compensation challenges. Obese claimants often miss more work days than healthy-weight co-workers with similar injuries. In addition, research indicates obese workers are likely to have higher medical costs and are more likely to become permanently disabled.

According to the Centers for Disease Control and Prevention, “the prevalence of obesity among U.S. adults and children remained steady in 2009-2010 compared with 2007-2009. Some 37.5% of adults and nearly 17% of those up to age 19 were obese.” For adults, a body mass index (“BMI”) between 25 and 29.9 is overweight, while a BMI of 30 or higher is obese.

Obesity increases the risk of co-morbid conditions which include hypertension, diabetes, stroke, coronary heart disease and cancer. These conditions complicate workers compensation cases, making it increasingly difficult for doctors to help workers achieve medical improvement. Doctors may recommend weight-loss programs or surgery, which can prolong the case. In addition, the additional costs may be passed on to the workers compensation claim.

Statistically, “obese workers file twice the number of workers comp claims as their counterparts. Their costs were seven times higher and they missed 13 times more days of work due to their injuries than did employees who were not obese.”

From Business Insurance, March 5, 2012 issue, pp. 1 and 21.

Are There Clouds in Your Future?

admin — Wed, 08 Feb 2012 22:50:45 +0000

Certainly cloud computing is attracting lots of attention, luring smart phone customers to huge corporations. A recent survey asked people if they felt the cloud was delivering value. 41% responded yes, 5% said no, 39% thought it was too soon to tell, and 15% were unsure.

Regardless of where you fall in the spectrum, looking at various aspects of the issue is important before deciding to move to the cloud. It is essential to make good plans to protect sensitive data. Companies should thoroughly investigate “potential cloud providers, provider contract language, what data is stored in the cloud, where the data is actually located and with whom the virtual space is shared.”

Perhaps most important is deciding what data is going to be stored and how that data needs to be protected. One option may be to keep sensitive, personal information off the cloud entirely. “Certain data subject to state or federal regulations may have specific security requirements.” Encryption may be used to protect data stored in the cloud, as long as the encryption key is not stored on the same server.

Investigate the cloud service provider, checking their history, the business and customer references. Ask about their security protocols. They may have audit certifications by a third party to attest to their claims. Find out what type of cloud computing they offer:

· a private cloud - exclusive use by a single organization,

· a community cloud - which might be shared by different companies with shared concerns, such as financial institutions,

· a public cloud - open to the general public, or

· a hybrid cloud - composed of two or more of the above.

You may also want to inquire as to where data centers are located. Sometimes moving sensitive data across borders (especially internationally) can be an issue. Ask about the availability of data “if there is a catastrophe, if the cloud service provider goes out of business or if the user decides to switch cloud service providers.” How vulnerable will your data be if “another company on the same cloud is attacked or if the cloud service provider itself is a target?”

Because cloud service providers generally include little or no liability, insurance coverage is an important issue. Have your insurance broker review your policies to make sure you have adequate coverage for cloud computing. Insurance coverage for cloud users is usually included in cyber risk policies.

From Business Insurance, January 16, 2012 issue, pp. 9-11.

Health Care Reform Reporting Updates

admin — Wed, 08 Feb 2012 22:49:32 +0000

The IRS has clarified some additional health care reform reporting rules recently. Health care cost information must be reported on 2012 W-2s which will be issued in 2013. An exemption is given to smaller employers with fewer than 250 W-2s in 2011 until at least 2014—and possibly longer.

Employers “are allowed but not required to report contributions to health reimbursement arrangements in calculating health care costs.” Similarly, “the cost of providing coverage through employee assistance programs, wellness programs or on-site medical clinics is not required to be reported if the employer does not charge premiums for the coverage to COBRA beneficiaries.” The reporting requirement does not apply to Native American tribal governments.

Last year the IRS determined that “the cost of coverage that is taxable to employees, such as for a child older than 26, must be reported on the W-2.” It also stated that “contributions employees make to flexible spending accounts are to be excluded from the health care cost figure.” Employers will not have to include dental and vision care coverage costs in the health care cost figure “if those plans are separate from group medical plans.”

If an employee works part of the year, terminates employment and elects COBRA coverage, “employers can choose to report only the cost of coverage while the employee was working or to report that cost plus the cost of COBRA health care continuation coverage.” However, employers must apply consistently whichever reporting choice is made.

“Health care cost information does not have to be reported when distribution of a W-2 is not required,” as may happen for retired employees

Kids in Crisis

admin — Wed, 08 Feb 2012 22:48:24 +0000

Statistics tell us that 15% of America’s children and teens are overweight, and an additional 16% are obese. That adds up to 24 million children – nearly tripled from what it was 30 years ago, according to the Centers for Disease Control and Prevention. In addition, today’s obese children have an 80% probability of still being obese at age 25. “Hospitalization rates and physician visits rates are 3.7% and 1.7% higher, respectively, for obese children.”

This isn’t just a parental or societal problem; this has become an employer problem as well. Many employers may have wellness programs in place to help their employees live healthier lives, even providing health risk assessments to help determine problem areas. Helping a parent learn about healthy eating habits and choices can have a trickle-down effect for their children. So can encouraging employees (and their families) to limit TV/computer/video time and engage in some form of exercise on a regular basis.

There are a few wellness programs already available to help families work together to improve their health. Most see positive results in parents first, and then the kids come around. “Employers have a lot [more] influence in the communities they’re in than they acknowledge. That’s what is going to drive their medical costs. Kids are the new frontier.”

From Employee Benefit News, November 2011 issue, pp. 27-30.

A Bias Claim Today may lead to a Retaliation Charge Tomorrow

admin — Wed, 14 Dec 2011 20:22:44 +0000

Retaliation charges are the most common type of employment claim against companies. And they “are more difficult to defend than the underlying discrimination claim with which they often are coupled in lawsuits, legal experts say.” Retaliation charges are often easier to prove in court, and juries are more willing to believe managers capable of retaliation than they are of discrimination.

Management can take steps to avoid some retaliation charges after discrimination charges have been made. One important step is to make sure there is some distance, preferably six to nine months, between the time a complaint is made and any action taken that could be considered retaliatory. Good record-keeping is also important, especially reports on problem employees.

When an employer is considering terminating an employee, it is often safer to do so sooner rather than wait. If the employee learns that her job is in jeopardy, she may file a discrimination suit and, after being fired, claim retaliation. The employer now needs to prove that its decision was not retaliatory.

Retaliation charges often reflect the employee’s perceptions rather than the employer’s intent. For example, if a worker asks for a different shift after filing a discrimination claim, he may interpret rejection of his request as retaliation. “Misinterpreted actions can include a demotion or pay cut introduced for nonretaliatory reasons, or even something seemingly inconsequential, such as wishing one employee a happy birthday but neglecting to do the same for the complaining worker.”

“The employee doesn’t have to prove that discrimination took place in order to establish a claim for retaliation, as long as the employee’s complaint of discrimination has met the definition of ‘protected activity,’ then the discrimination complaint can be the basis for a retaliation claim,” said a partner of a major nation-wide law firm.

From Business Insurance, Sept. 19, 2011 issue, pp. 16-18.