Adopt New Human Resources Methods and Tools to Meet Today’s Needs
“Nothing remains constant except change itself.” Cliché? Perhaps. Nonetheless, it’s true, and in this hyper-digital age, it's no secret that the pace is more rapid than ever. The good news is that the same digital platforms, applications, and devices that have profoundly changed how we interact also provide the basis to meet new challenges quickly—if you are agile at accepting and integrating each as needed.
To help, here are four points of change for employers to be aware of as this new year begins.
- Individual Mandate Penalty Eliminated in 2019
The Tax Cuts and Jobs Act is now in effect. As a result, individuals are no longer penalized for failing to obtain acceptable health insurance coverage for themselves and their family members, as the bill reduced the individual mandate penalty to zero. This legislation was passed in 2017 by the Senate and House of Representatives and signed into law in December of that year by President Trump.
- Creative Funding of Health Plans and Their Risk
For 2019, individual employee health care costs are on track to eclipse $15,000 per year. To reduce this number, employers are studying alternative health care options such as creative funding models. For example, self-funding was once only available to employers with upwards of 1,000 employees. Now, depending upon the state, employers with as few as five employees can take advantage of this type of alternative funding to leverage cost while adopting new risk containment strategies.
- Benefits Over Salary
The current economy creates a very competitive job market, making hiring more difficult. Employers in almost every industry are struggling to attract talent as prospects are more selective and choose benefits, above salary, as being one of the major factors for considering an employer. Basic benefits like paid vacation and retirement plans are not enough. To compete, employers need to focus on making their packages more enticing by offering options such as telemedicine, student loan repayment programs, and an enhanced assortment of voluntary benefits.
- Digitization of Benefits
Employees conduct many of their personal activities through smartphones—especially millennials. As a result, they expect the same type of easy-to-navigate applications be made available to manage their employer-sponsored benefit plans. And as benefits are a key component of a recruitment and retention strategy, paper forms with tedious requirements create an off-putting experience for both current employees and job candidates.
This reality has encouraged employers to seek new ways to communicate with and educate staff. And by adopting the latest technology the employer benefits by reducing the time needed to perform related transactional human resources tasks—saving nearly 14 hours per week.
Bottom line! Staying competitive means becoming aware of and embracing new solutions for managing and delivering employee benefits. In 2019, employers must implement changes at a fast pace to keep a digital-savvy workforce engaged.
Bolster Your Benefits Package
Alliance members have access to a special benefit for offering a competitive benefits package. Through Alliance’s national network health plan, member organizations can join to form a larger risk pool and better negotiate superior group health insurance at a lower cost. Learn more online and by joining one of several upcoming webinars.
This is just one of the many organization-strengthening products offered through the Alliance’s Operations Support Services. See the many ways the Alliance can support your human resources, finance, and administrative needs.
Complete our online form to request more information.