Health Care Reform: How Does It Impact Employers

In March 2010, The Affordable Care Act was enacted which outlined how businesses will administer health care benefits to employees.

What does this mean:

• Employees with less than 25 full-time employees and are providing health insurance coverage to their employees will qualify for a special tax credit.  Small businesses that pay at least half the cost of coverage for employees are eligible for the credit as well.
• Employers with 50+ employees will need to offer health care coverage.  If a business fails to comply, penalties will include $2k per full-time worker.
• Employers who have at least one employee who applies for federal subsidy to purchase individual insurance will also be subject to penalties.
• Employers with 200+ employees will be required to enroll employees into health plans automatically.  However, employees have the right to opt out.

In July 2010, the Department of Health and Human Services will launch a website for small businesses to better understand affordable health care coverage options.

Other benefits covered for California employers:

• Starting July 1 to provide coverage for uninsured residents with pre-existing medical conditions through a new transitional high-risk pool program, funded entirely by the Federal government.
• On September 23, 2010, plans that offer coverage to children on their parents’ policy must allow children to remain on their parents’ policy until they turn 26, unless the adult child has the option for coverage with his/her employer.

Learn more about Health Care Reform at www.healthreform.gov.

Goal Setting For Your Employees

Setting goals is essential for an employee's and company's success. Written goals allow for managers and employees to measure and recognize achievement.


Goals can identify and correct performance issues, as well as focus on department/organization top priorities. Think about short-term and long-term goals that relate to accuracy, cost, volume, time and professional development. These defined goals should be a part of a performance evaluation and be obtainable with asserted effort.
Remember to include:


• an overall objective for each goal
• specific milestones to meet each goal
• target dates
• resources for accomplishing achievements


Managers should meet with employees at least quarterly to review the status and celebrate achievements.


Some employers like to use an Individual Development Plan (IDP) to help facilitate career growth for their staff. This is an interactive process which typically focuses on skills and alignment to the organization's mission while allowing for individuals to become more proficient and productive. The plan should center on an employee's strengths and providing new opportunities.

Employee Lay-off Notification Meetings

When an organization has made the hard decision to reduce the workforce, there are many things to take into consideration.  It is understandable that the person conducting the notification might feel several emotions including anxiety, sadness, guilt, fear and anger.  Remember that this is a business decision with personal ramifications.  Think it through, be prepared and stay focused.


Before the Meeting

• Plan the logistics (when, where, agenda)
• Review the material you will be providing to the employee
• Try to predict possible responses of employees (who is likely to react and how?  how will you handle these reactions?)
• Plan and rehearse what you want to say (especially your first few sentences)
• Identify sources of help and how to engage them (HR, EAP, etc.)
• Know your own feelings

Conducting the Meeting

• Meet in a private place with a closed door
• Use a neutral seating arrangement
• Make sure there is easy access to the door for all involved parties
• Ensure that there will be no interruptions
• Have all the materials you might need in the room
• Set a professional, caring tone
• Treat the employee with dignity and respect
• Get right to the point and keep the meeting brief (typically 15 minutes)
• Allow enough time for questions
• Listen and empathize, but avoid giving any indication that the decision could be reversed
• Discuss the transition of job responsibilities (if appropriate)
• Confirm that the information is understood by the employee

Common Pitfalls to Avoid

• Discussing other employees' status or performance
• Debating or criticizing the process
• Passing or deferring blame (i.e. "If it were up to me, this would not be happening to you.")
• Arguing/reacting defensively

Communicating With the Remaining Staff

Job eliminations can be difficult for those who remain.  It is important to consider what to tell your staff.  Whenever possible gather and debrief your team in a group format.  Like any meeting, set the ground rules prior to getting started (i.e. respectful, open communication).  Permit employees time to express their feelings.  Discuss issues surrounding workloads and assignments.  Continue to be visible and available to the remaining staff.

Managing Employee Absenteeism

An essential part in achieving employee satisfaction in the workplace is creating and maintaining a positive work environment where workers will want to come and where they are supported to stay home when they are ill. Having employees at work is critical to the organization's success.
 
Managers must also ensure that an organization's goals are met through managing employee performance including absenteeism. Here are some guidelines to assist managers in managing absenteeism.
 
Absence in this article is defined as the failure to report to work on a scheduled work day without prior authorization. Tardy is defined as the failure to be at the designated work station ready and to begin work at the scheduled time without prior authorization from management.

 Set Expectations For Good Attendance

• Make the importance of improving attendance visible by talking about current attendance trends at all team meetings.
• Set clear expectations for good attendance.
• Ensure that employees have an annual attendance goal that demonstrates the organization's expectation.
• Keep accurate attendance calendars for each employee and review for patterns monthly.
• Follow company policies and laws related to time off benefits.
• Be consistent with all employees.

Stages of Attendance Management

1. Deal with emerging patterns of absenteeism. At the first indication of a problem, meet with the employee to discuss his/her attendance record, reasons for absences, review department attendance practices, and share expectations for improvement.
2. Indentify and address root causes. If employee absenteeism continues after coaching, meet with the employee to identify root causes and an action plan for addressing each factor.

Before You Issue Corrective Action

1. Step One -- Review employee attendance records for number of absences and patterns.
2. Step Two -- Determine if an employee has unacceptable attendance based on Step One.
3. Step Three -- Make an appointment with Human Resources to review attendance information gathered.

Is there just cause for taking disciplinary action?

• Did the employee understand the expectation?
• Was the employee forewarned about the consequences of non-compliance?
• Did the employee receive equitable treatment?
• Was there a proper investigation?
• Was the employee given a chance to tell his/her side of the story BEFORE deciding on corrective action?
• Does the proposed corrective action fit the offense?

If corrective action is to take place, what is the appropriate level?

• Was the employee's action major or minor? Example: job abandonment versus tardiness.
• How many and which rules were violated?
• Was there prior corrective action in the employee's file? What was it and how recent?
• Were there any mitigating circumstances? Example: time protected by FMLA or any other law/employee benefit.

These are only guidelines to consider when managing attendance issues. There is no substitute for consistent management of employee attendance and utilization of good judgment. Set attendance expectations early and reinforce often. Deal with issues as they emerge, rather than delaying.

Human Resource Options for Small Businesses

In these challenging ecomonic times, many small businesses are looking for cost-saving ideas. Many of those ideas include employee initiatives, workplace safety, hiring the right employee and retainting them.

Human Resources is recognized as an essential component in a business' strategy and success. So how does a small employer afford the cost of hiring an human resouce expert? A couple ideas include outsourcing your HR Department or utlizing a HR online self-service.

Benefits of considering HR outsourcing.

1. reduce liabilities
2. save time and HR salaries
3. one stop access to professional industry knowledge

Another option for small business employers is to consider utilizing online resources for low-cost tools and resources.  Organizations like HR Logic offer online forms, guidance and HR updates for affordable fees.

Benefits of considerting HR Self-Service:

1. 24/7 access - information to manager your talent when you need it
2. minimal out-of-pocket expenses
3. multi-faceted tools to accomodiate a company's specific needs
4. experienced partners to help employers achieve the bottom line

Whatever option words best for you, remember that talent management is crucial to a comany's strong-hold in the market place.