hr trends for small and medium enterprises in 2017
TRANSCRIPT
H E A L T H W E A L T H C A R E E R
H R T R E N D S F O R S M A L L A N D M E D I U M E N T E R P R I S E S I N 2 0 1 7
Presented by:
Ruth Baylis, Mercer PeopleProRichard Hill, CEBS, CLU, ChFC, Mercer PeoplePro
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W H A T W E W I L L R E V I E W T O D A Y
• Focus of organizations in 2017– Attracting and Retaining– Culture
• How best to define your organization’s culture
• How to make the organization’s culture sustainable
• The importance of well-being within a broader workplace culture strategy
• Bringing culture and well-being together
• Megatrends in healthcare
• A culture that promotes wellbeing has an impact on the employee value proposition
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T O D A Y ’ S F E A T U R E D S P E A K E R S
Ruth Baylis has joined Mercer PeoplePro after 20+ years in HR, on the client side of the business. She has experience in a variety of industries including Financial Services, Healthcare, tech startups and environmental non-profits. Her specialties lie in the Talent Acquisition/Management and Business Partner space, although she has managed all areas of HR. Ruth holds a Master’s Degree in Industrial and Labor Relations from the University of New Haven and a Bachelor of Arts Degree from the University of Massachusetts, Amherst.
Ruth BaylisPRO
An alumnus of Mercer / Marsh, Richard Hill bring over 35 years of benefits, HR, and management experience helping firms align their HR and benefits goals with corporate goals working within budget constraints.
Throughout his career he has worked with Fortune 500 firms like Hewlett Packard, Wells Fargo Bank, and AMI; as well as middle market organizations and smaller firms both in the private and the public sectors.
Richard has the following industry designations: CLU (Chartered Life Underwriter), ChFC (chartered Financial Consultant), and CEBS (Certified Employee Specialist) and holds a Master’s degree in Counseling Psychology from Jesuit School at Berkley (JSTB- GTU) and a Bachelor of Arts from Oblate College, Washington DC and is a University of Pennsylvania, Wharton School Certified Employee Benefits Specialist.
Richard Hill, CEBS, CLU, ChFCHealth & Wellness Pro
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W H O I S M E R C E R P E O P L E P R O ?
Mercer PeoplePro is the most powerful and affordable virtual marketplace for HR consulting and solutions.
- An “on demand” solution- Designed to bring Mercer’s trusted brand and expertise to the small business segment- Mercer PeoplePro will power the HR engine needed by companies to grow fast, attract, and retain the best talent.
MERCER PEOPLEPROTM
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G E N E R A L T R E N D S F O R 2 0 1 7
Engagement/culture
• Employment market trends
• Culture
• Generational differences
• Ideas/solutions
Benefit Trends
• Legislative
• Generational differences
• Ideas/solutions
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E M P L O Y M E N T M A R K E T T R E N D S
• As of October 2016 – unemployment rate was 4.9%
• Technology sector unemployment rate (2015) 2.3%
• Gig Economy
• Skilled labor (Baby Boomers and Traditionalists are leaving workforce)
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C U L T U R E
Culture is a pattern of beliefs, values and expectations, shared by the members of an organization, which produce rules forbehavior. These values, beliefs and expectations powerfully shape the behavior of individuals and groups within the organization.”
Culture is the way we do things around here
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ECO-SYSTEM Enabling mechanisms that ensure culture success
Are the structures, rules and regulations enabling the achievement of the culture?Are decisions made at the right level in the organization?
How is performance measured and rewarded?How transparent are the communication channels in the organization?
Is everyone pulling for the team?
CORE BEHAVIORS
Behaviors expected of all employeesExpectations vary based on career stage/level
Embedded within talent programs
D E F I N I N G Y O U R C O M PA N Y C U LT U R E
How is culture
defined?
How is culture
enabled?
CORE VALUES
Foundational beliefs of the companyCore traits expected equally of employees
Less scope for scalabilityNon- negotiables
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B U I L D A S U S TA I N A B L E C U LT U R E
ReinforceBuild into the culture of the organization by reinforcing through programs & processes, with fun, engagement and ownership from the top.
Communicate (“Leading in the Company Way”)Develop a communication and change management plan and cascade effectively through different levels. “Teach” the culture, what it means and how you live it and make decisions based on it.
Current State AssessmentGain understanding of current state data and perspectives from leaders and employees. Understand the pain points and barriers to change.
Future State VisionExplore best practices, envision the future and understand gaps from current state. Clearly define what the future looks like.
Culture implementation plans generally progress along four dimensions starting at the bottom and working up over a 18-24 month period.
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E M B E D B E H A V I O R S I N T A L E N T P R O C E S S E S
CAREERFRAMEWORK
Rewards
Performance Management
Selectionand
Retention
CareerDevelopment
WorkforcePlanning
SuccessionManagement
Hire, On-board, measure, grow and reward talent on the basis of the behaviors they demonstrate
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R E T E N T I O N F I R S T
• Fulfilled employees help attract great candidates
• Dissatisfied employees market their perception of issues to the masses
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M E G A - T R E N D : M U L T I - G E N E R A T I O N A L L A N D S C A P E
Baby Boomers (Age 51–69)
Gen X (Age 35–50)
Millennials (Age 34)
Traditionalists (Age 70–87)
Base pay
Retirement plan
Type of work
Health care benefits
Incentive pay
Paid time off
Flexible scheduleWorking for org. I
respectCareer opportunities
Training opportunities
Base pay
Retirement plan
Flexible schedule
Health care benefits
Incentive pay
Paid time off
Type of work
Career opportunitiesWorking for org. I
respectTraining opportunities
Base pay
Career opportunities
Incentive pay
Retirement plan
Flexible schedule
Health care benefits
Paid time off
Type of workWorking for org. I
respectTraining opportunities
Base pay
Retirement plan
Paid time off
Health care benefits
Incentive pay
Type of work
Flexible schedule
Working for org. I respect
Career opportunities
Training opportunities
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…AND A DEEPER LOOK AT GENERATIONAL PREFERENCES DEMONSTRATES VARYING TOTAL REWARDS PRIORITIES BY GENERATION
Source: Mercer “Inside Employee Minds” 2015
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R E A S O N S F O R D I S S A T I S F A C T I O N
• Management
• Growth – Millenials
• Interesting Work – Gen X and Boomers
• Day to day annoyances (lack of resources or technology to be successful)
• Lack of organizational support
• Lack of recognition
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W H A T T O D O A B O U T D I S S A T I S F I E R S
• Identify what is appropriate for your company
• Train Managers – Emotional Intelligence
• Evaluate Mission/vision and engagement with both
• Consider implementing opportunities for employee engagement such as employee resource groups
• Culture Champions
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A T T R A C T T H E B E S T
• Start with the basics, review your ATS process and career site
• Remind your Talent Acquisition team AND managers that they are the face of the company to candidates
• Keep your employee referral program relevant
• Have managers and SMA represent the company at speaking events – coach them on networking
• Invite high school and college students to hear an interesting discussion, give them a tour and keep in touch with them
• Design an alumni program – they may be gone but they know a lot of people
• Be creative – make sure what you are presenting is representing the messages you want
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T H E H E A L T H C A R E M A R K E T T I P P I N G P O I N TM E G A T R E N D S 2 0 1 7 …
…WITH POOR CARE QUALITY
ACCELERATING COST PRESSURE…
Explosion of technology and data
Growing consumer accountability
Multi-generational behaviors and needs
Dramatic changes to payor/provider roles
Broad regulatory changes
Preventive health
Acute care
Chronic care
Patient compliance 50% 70% 60%
Care delivery 99% 70% 80%
Efficiency 50% 49% 48%
Health cost outpacing inflation
US: Highest per capita health care spend worldwide
Employer trend expected to continue risingBEFORE PLAN
CHANGESAFTER PL AN
CHANGES
INFLATION EARNINGS
Employees not seeing care improvement
50% efficiency not acceptable in any business
MEGA-TRENDS COMPOUNDING DISRUPTION
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M E G A - T R E N D : B R O A D R E G U L A T O R Y C H A N G E S
2014 2015 2016 2017 20180
25
50
3 612
22
40
Enro
llmen
t (M
M)
PRIVATE EXCHANGES PUBLIC EXCHANGES
MULTI-CARRIER, OFFERED BY BENEFIT CONSULTANTS/BROKERS
• Collaborative buying focused on cost reduction• Access to multiple carriers • Focus on self-insured, fully-insured, or both• May offer range of ancillary benefits in addition
to core health
SINGLE-CARRIER, OFFERED BY INSURANCE CARRIERS
• Access primarily to plans offered by the providing carrier
• Primarily focused on fully-insured employers
• Typically offer fewer ancillary benefits
• Offer a viable individual market (guaranteed issue, age rating)
• Subsidies available for <400% Federal Poverty Level
• Spur new product offerings• Create new cost benchmarks
Source: The Kaiser Family Foundation
REGULATORY CHANGES ARE SPURRING NEW DELIVERY OPTIONS FOR EMPLOYERS, AND EXCHANGES ARE BECOMING A MAINSTREAM OPTION
Employers adopting private exchanges within 5 years –
most major surveys estimate ~ one in three.
Projected lives on private health insurance exchanges:
Estimated Actual ProjectedSource: Accenture
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M E G A - T R E N D : M U L T I - G E N E R A T I O N A L L A N D S C A P E H E A L T H C A R E P R I O R I T I E S
EMPLOYERS MUST CONSIDER MULTIPLE GENERATIONS’ NEEDS AND PRIORITIES WHEN CRAFTING THEIR HEALTH STRATEGY AND EMPLOYEE VALUE PROPOSITION…
29% of today’s workforceLive to work – “Office
face time”
Baby Boomers (Age 51–69)
34% of today’s workforceWork to live – “Work should not define life”
Gen X (Age 35–50)
Millennials (Age 34)
35% of today’s workforceWork my way – “Own
careers, meaningful work”
2% of today’s workforceCompany loyalty – “Same
company forever”
Traditionalists (Age 70–87)
• Choose lowest cost plan – maximize take home pay
• Use social tech platforms to find doctors, make appointments, research health conditions
• Benefits: Not a major factor in whether I stay or leave
• Choose plan that fits the needs of my family
• Have disposable income but need to save where possible
• Benefits that meet my family’s needs: Can affect my decision to stay
• Choose plan that can help me maintain my health
• Make more each year, but lots of competing expenses
• Post-retirement medical benefits can play a role in my decision to stay or leave
• Not sure how I’ll pay for healthcare in retirement or which supplement I need
• Want to know how to make the most of what I’ve saved
• Looking to protect/maximize my benefits so I can retire
Sources: Mercer “Inside Employee Minds” 2015, Pew Research Center, 2015
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T H E H E A L T H C A R E M A R K E T I S F A I L I N G A L L O F U SR E S U L T S G E N E R A T E D B Y T O D A Y ’ S S Y S T E M
C O S T
3 4 %e s t i m a t e d
w a s t e i n U S h e a l t h c a r e
s p e n d i n g
Q U A L I T YM e d i c a l e r r o r s
a r e t h e
3 r d l e a d i n g c a u s e
o f d e a t h
S AT I S F A C T I O NH e a l t h p l a n s
h a v e a n e t p r o m o t e r s c o r e o f
1 8 o u t o f 1 0 0 –
p l a c i n g t h e m i n t h e b o t t o m q u a r t i l e
D o y o u t o l e r a t e r e s u l t s l i k e t h e s e i n a n y o t h e r p a r t o f y o u r b u s i n e s s ?
Sources: see page 15
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I N N O V A T I V E A P P R O A C H E S P R O V I D E A C T I O N A B L E C O S T C O N T A I N M E N T L E V E R S F O R E M P L O Y E R SA P L A T F O R M F O R A C T I O N
Condition Focus Emerging Core Components Across Programs
Navigation
• Directing members to the right solution at the right time
Type of Program
Advocacy
• Concierge level assistance to streamline the member experience
Delivery Infrastructure
• Delivery either through an employer-sponsored plan or an exchange
Incentives/Challenges
• Intrinsic or extrinsic motivators to promote program engagement
Communications
• Broad-based or personalized marketing materials to promote programs
Physical Activity/Wellness
Financial Wellbeing
Sleep
Weight/Nutrition
Resiliency/Mental Health
Condition-specific (e.g., Diabetes)
Pregnancy/Family
Smoking
Pharmacy
Transparency
Telehealth
2nd Opinion
Care Coordination
Onsite/Near-site
Narrow Networks
Centers of Excellence
Nar
row
Bro
ad
Nar
row
Bro
ad
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M O V E T O W A R D W E L L B E I N G F R O M W E L L N E S SW H Y C O M P A N I E S I N V E S T I N W E L L - B E I N G
• Improve the health of employees and their families
• Manage health care cost—for employees as well as employers
• Attract and retain employees—especially Millennials
• Improve work performance
• Happier, more engaged employees
• Maximize business results
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F R O M W E L L N E S S T O W E L L B E I N G -P O T E N T I A L I M P A C T O N T H E P E R S O N A N D T H E B U S I N E S S
Improvement in… Person BusinessPhysical Health More energy for living
AlertnessLower medical expenses
Improved productivityBetter work performanceFewer accidents/injuriesLower medical expense
Emotional Health Living a full lifeResiliency with challengesAbility to manage stress
Improved focus on the job
Financial Health Improved security Improved focus on the job
Social Health Stronger relationshipsSense of belonging
Happier, more engaged employees
Cultural/Workplace Health
Feeling valued/respectedAbility to have an impact
Happier, more engaged employeesLower turnover/better attraction
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T H E H E A L T H C A R E M A R K E T E X P L O S I O N O F T E C H N O L O G Y A N D D A T A
Smok
ing
Preg
nanc
y / F
amily
Cond
ition
Mgm
t.Be
havi
oral
Heal
th
Weight /
Nutritio
n
Sleep
Financial
Wellbeing
Physical
Activity/WellnessMedical Devices Pharmacy
Transparency
TeleHealth
Advocacy
Employer-Sponsored/Exchange
Communications
Incentives/Challenges
Navigation
M E M B E R
Assessments/Testing
Broad
Big Data Analytics2 nd
Opinion
Care
Coordination
Onsite/
Near-siteProviderN
etworks
Healthy Habits
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T H E C O N N E C T E D H E A L T H C A R E N E I G H B O R H O O D
Onsite/Near-sitePharmacy
Retail ClinicDentalEAP
Disease Mgmt.Care Mgmt.
Pharmacy Benefit Mgmt.Mental Health
Nurseline
DoctorsHospital
COENarrow Networks
ACOsEMR
TelemedBiometric Testing
Provider House Calls
Wearables/TrackersNutrition/Meal PrepExercise Equipment
Social Support
Consumer RatingsWorkplace Challenges
Grocery/ Farmer’s MarketsGymsSpas
Community ResourcesEducation/Awareness
WellnessCost Transparency
Concierge/Navigation
Incubators, Accelerators, Investors, Entrepreneurs, Associations
HOME WORK/RETAIL PROVIDERS HEALTH PLAN
NO
N-C
LIN
ICA
LC
LIN
ICA
L
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K E Y S T O S U C C E S S
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E M P L O Y E R - L E D T R A N S F O R M A T I O NC O N V E R G I N G O N T H E V I T A L S F O R C H A N G E
M O M E N T U M I S A C H I E V E D T H R O U G H R E L E N T L E S S A N D C O L L E C T I V E E M P L O Y E R F O C U S O N A L L F O U R V I T A L S
P A Y F O R V A L U E
Aligning reimbursement with value, not volume
D R I V E T O Q U A L I T Y
Delivering the right care at the right time, in the right setting, error free
P E R S O N A L I Z E T H E E X P E R I E N C E
Leveraging better data and technology to engage employees in the right behaviors, every day. Move toward Wellbeing.
E M B R A C E D I S R U P T I O N
Injecting change into the system – with internal stakeholders and external partners – to be future-ready
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Q U E S T I O N S ?P l e a s e t y p e y o u r q u e s t i o n
S P E C I A L O F F E R
To help you kick off the New Year, register today at https://mercerpeoplepro.com/cultureand receive a free employee handbook review by a PeoplePro specialist, compliments of Mercer PeoplePro.
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