Traditionally, the HR department is seen as a necessary expense, but recently finance departments are taking a more active role in areas traditionally exclusive to HR. A recent survey by Towers Watson and Forbes Insights offers some data points on why this is happening. Over 300 HR and financial executives were surveyed during the research. Though finance executive agreed that setting the strategy for reward program was usually handled by the HR department, most of the financial executives indicated that they have become more involved in the budgeting of those programs. The survey also polled the future expectations of the financial executives. These questions indicated that a full one-third of the financial executives thought their role in the reward program strategy development will continue to expand and half now expect to have primary responsibility for the rewards programs in the near future. The majority of both the HR and finance executives felt their companies are lagging behind their competitors i ...

Recent research published by Bersin and Associates Research illustrates the mismatch between your efforts to develop your employees and their own personal goals. Over 80% of companies offer tuition assistance. Many of the big companies (over 10,000 employees) spent upwards of $3,700 per year per employee on tuition reimbursements. But, over a quarter of the companies surveyed do not measure the effectiveness of their tuition assistance program in any way, possibly due to the view that tuition reimbursement is sacred and considered a standard benefit. The attitude seems to be, “If we’re going to offer it anyway, what’s the point in measuring it?” Common participation rates for engaged companies are as high as 10% of the workforce, while other companies hover as low as 1% participation. As more employees utilize the program, the overall visibility and perceived value of the program goes up. As a business owner, you can help with the participation of the tuition reimbursement programs ...

Recently, the wave of support for preventative wellness programs has begun to change the conversation about whether its financially beneficial to offer them. Financial executives in companies have traditionally been wary of supporting preventative wellness program due to the lack of data and information explaining the return on their investment in those kinds of benefits. In recent years, the data is now coming together to help gather support for wellness programs as a good investment. Traditional healthcare is frequently seen as a reactionary process to healing ailments. Whereas wellness programs emphasize elements that prevent illness, like specific diets, weight loss programs, and health screenings to identify trouble before it gets worse. Proponents for wellness programs frequently focus on heart health, stating lower levels of blood pressure and cholesterol. This, they say, helps to prevent hospital stays, work loss, and prescriptions. The wellness program screenings help employees become informed ...

In an effort cut federal the deficit, 401(k) plans are being targeted for changes. Historically, the employers’ and employees’ contributions to 401(k) plans have been sheltered from taxation. Then, down the road, as employees take withdraws from their accounts during retirement, they are taxed on the withdraws. The first proposal has assumed the nickname of the “20/20 cap”. This would limit employer and employee contributions to 401(k) plans to $20,000 or 20 percent of an employee’s salary, on an annual basis. The plan creates the cap at whichever limit is reached first. Currently, under law, the limits are $49,000 or 100 percent of a worker’s salary. Supporters of this plan direct attention to the concept of limited high-income employees from gaining a much larger tax advantage than lower income employees that never get near the $49,000 limit. Supporters emphasize “leveling the playing field”. The other concept aims at ending the tax decoctions for 401(k) p ...

Granting longer leaves for maternity or disability can add dangerous complications for your employees and your HR staff responsible for communications with employees. The key is to understand the FMLA timelines. Under FMLA, employees are eligible to take 12 weeks of maternity leave. If your company offers a leave period longer than those 12 weeks, it creates a dangerous time gap. If your company health plan is self-funded, you probably have a reinsurance policy in place to limit your company risk. The reinsurer’s policies are most likely modeled around the 12 week maternity leave time limits. So, if your employee takes more leave and amasses more medical bills outside of that 12 week FMLA window, but inside your company’s longer leave policy, then the issue of insurance coverage for those medical bills arises. This happens if the employee gets to the end of the 12 week FMLA coverage window and then takes short-term disability. The reinsurer may reject the notion that it has obligation to those m ...