Archive for the ‘Employee Benefits’ Category

Balancing Employee Benefits and Salaries

Monday, April 8th, 2013

We understand that for any business to thrive, employees have to be put into consideration as they are amongst the most significant assets. Consequently a business has to design a motivated work-force since it is one of the key components of any successful company. In order to retain employees, companies have to come up with innovative performance measurement systems that would help in developing exceptional remuneration packages. This is because in the world today, there are a new crop of employees, who are generally information technology literate or have a host of new skills that were not available in the past.

We encourage HR professionals to develop a strategic approach to salaries and benefits as it is increasingly becoming important. A rigid labor market together with low inflation means employers have to be creative in order to remain competitive in recruiting and retaining staff without facing significant increases in pay bill costs or disruption of normal business functions.

Employee benefits in general refer to forms of value, other than salaries or payment granted to the employee in return for their contribution in an organization. Benefits are steadily becoming more expensive for businesses to provide to employees and as a result the range and choices of benefits are changing quickly to include, for example, flexible benefit plans. PPACA has recently intervened to this end to offer some employers a temporary tax credit to encourage them to provide insurance.

Recent research has shown us that a number of companies struggle with communicating benefits information to its employees. We urge HR professionals to incorporate the technology and tools in their reach to make communication strategies more successful, and to file their efforts to ensure uniformity.

In order to communicate effectively, we advise companies to start with understanding the three-to-five year strategic priorities of the business – these may include healthcare cost management, improving productivity and customer service growth by acquisition, and attracting and retaining talent. Productivity improvement programs are also another strategy that helps tie job behavior to rewards that may either be financial (e.g., bonuses and pay raises) or nonfinancial (e.g., improved job satisfaction).

Obtaining the right level of financing on terms that you can afford is also another strategy. It may be quite easy to understand the difference between an angel investor and a venture capitalist and knowing which one is right for your business but the process of actually finding an investor and giving them the documentation that will encourage them to invest in your business can be quite difficult.

Our firm is innovative to our industry and caters to early stage business startups and small businesses. We can help guide your HR professionals on the global standards for employee benefits.
References

Seven Characteristics of Highly Effective International HR Professionals by Warren Heaps

http://internationalhrforum.com/2012/08/12/seven-characteristics-of-highly-effective-international-hr-professionals/ Retrieved April 2, 2013

Pettit, J. & Ahmad, A. (2000) Compensation Strategy for the New Economy Age.

Stern Stewart & Co. Research.

Posted in Employee Benefits, Employee Recognition, Health & Happiness, Healthcare Reform, Human Resources | No Comments »

Reducing Employee Medical Cost with Telemedicine

Monday, March 25th, 2013

Telemedicine is receiving a great amount of attention as an effective means to lower employee health care costs, both from having to take time off work and for office visit bills.   Employers who are looking for ways to help employees save time and money on health care would do well to look into telemedicine as a valuable employee benefit.  At the same time, these employers have an opportunity to lower their own business costs for employee absences and medical costs paid by the employer.

What is Telemedicine?

Telemedicine, according to the American Telemedicine Association, is the use of telecommunications technology for medical, diagnostic, monitoring and therapeutic purposes when distance separates the users. Telemedicine makes use of computer and communications technology to capture and transmit text, audio and video information as a substitute for face-to-face contact between patient and doctor.

Telemedicine Options

Telemedicine options can vary from simply using a validated 24/7 telephone service to get a medical doctor’s advice on things like sore throats or influenza or non-narcotic prescriptions, to a real-time mode, where live video  and audio allows the physician, patient, and specialist to communicate interactively.   A third option, called the store-and-forward mode, is used when parties are not available at the same time, enabling medical information, including video, to be emailed or placed on a server for the specialist to view.

With real-time consultation, the physician can do an examination with the use of ENT medical peripherals,[1] so that one’s condition can be viewed by both the physician and the specialist.  This enables the specialist to diagnose and recommend the proper treatment immediately.  This method also provides training for the provider in providing diagnostic, treatment, and follow-up care.

What this does is enable a person to consult a specialist anywhere in the world and not have to travel to the specialist’s office.   This type of medicine can offer huge savings to both employer and employee. Reduction of travel time and the stress of battling one’s way through organizational paperwork and red tape are added benefits that cannot be overlooked.

Americans also like to get medical information online, and many medical providers provide access to helpful medical information that people can research online.   Patients can often get advice from their own physicians through these portals.  Information on specific symptoms may motivate one to obtain treatment sooner.

Successful Monitoring

Telemedicine has been shown to reduce not only the cost of health care, but to provide better care of chronic conditions and fewer or shorter hospital stays.   Self-monitoring/testing devices allow physicians to monitor or test patients at their homes or other places.   Pro-active self monitoring devices for chronic conditions may achieve better disease management success and allow physicians to detect any developing problems.

In Summary

Telemedicine provides a cost effective means to give medical care and access to doctors and specialists that can save both the employer and the employee valuable time and money.

[1] http://www.telemedicine.com/whatis.html Retrieved March 17, 2013

Posted in Employee Benefits, Health & Happiness, Health Insurance Definitions, Medical Cost Trends, Wellness | No Comments »

The Importance of Voluntary Benefits

Monday, March 18th, 2013

Employers who understand voluntary benefits realize these are more than a sprinkling of niceties in the benefit package. Employees are concerned about these benefits and may often choose to work for the employer who offers more. Thus, small businesses can use voluntary benefits as an inducement to draw talent as well as avoid losing talent to competitors who offer a stronger portfolio of benefits.

In these difficult economic times, many employers view these ancillary benefits as things to cut first to stem a diminishing cash flow. However, smart employers are using voluntary benefits to enhance their benefit package while keeping the costs of employee benefits stable.

Employers are doing this in several ways.

  1. Adding voluntary benefits to complement existing employer-paid benefits. For example, an employer can add on voluntary benefits to things like life-insurance and long-or-short term disability benefits. This takes the burden of paying for the benefit off the employer’s shoulders and allows employees the opportunity to buy coverage for themselves and their dependents, suited to the employee’s own needs.
  2. Restructuring an employer-paid benefit to include an employee buy option. An employer may pay for the base-level benefit and the employee could have the option to upgrade to a richer benefit and pay the difference.
  3. Replacing an employer-paid benefit with a voluntary one. Instead of the employer paying for the benefit, such as disability, life, or dental insurance, the employee bears the cost.
  4. Offering discount cards through affinity partnerships allow employees to enjoy discounts on things like auto or home insurance at no direct cost to the employer.

The most frequent types of offerings in the voluntary insurance market are short-term and long-term disability, supplemental life, critical illness insurance such as cancer or heart policies, accident, and hospital indemnity policies. Other types of voluntary benefits might include things like a prescription drug card, pre-paid legal, dental, or discount offerings from various kinds from many companies.

Several advantages for both employer and employee are derived from the use of voluntary benefits.

“Not only does offering voluntary benefits cost small employers virtually nothing and help level the benefits playing field with larger companies, it also affords employees access to various type of insurance coverage, typically with looser underwriting requirements and at group rates that are ‘lower than if they went out and got coverage on their own,’” says Bernard DiFiore, President of BenefitMall, a Texas-based benefits wholesaler.

One key to helping employees make the adjustment from paid to voluntary benefits is to find a vendor that can ensure that products are competitive priced, administratively simple, and easily explained to employees. Another key is flexibility. The “one size fits all” package doesn’t work anymore. The needs of a 25-year old single individual are not the same as a 40-year-old married person. Voluntary benefits allow each to decide what is best and affordable for them.

Voluntary benefits will undoubtedly play a crucial role in the workplace of the future, where employees will be able to choose from an extended list of benefits for which they will pay for wholly or in part.

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Posted in Employee Benefits, Employee Recognition, Global Benefits, Health & Happiness, Health Insurance Definitions, Healthcare Reform, Human Resources | No Comments »

Value of Worksite Wellness Programs

Thursday, October 27th, 2011

As a business owner, you probably understand how your employees’ health can affect your company’s bottom line.  You may not know, however, how much impact fewer sick days and higher employee morale can have on your cost of labor.

Workplace wellness programs like those offered here at BayPoint Benefits will help your company in these ways:

  1. Reduced Absenteeism.  Healthier employees get sick less, saving costs not only in paid sick leave, but also in the temporary help, re-scheduling time, and lost business resulting from prolonged absence.  A healthy employee will also influence his or her dependents, thus reducing time off needed to care for sick family members.
  2. Improved Productivity.  Healthier employees work longer hours with greater focus. This seems obvious, right? But small improvements make a big difference over time. Just one hour of extra productivity per day adds the equivalent of nearly one full week of work – every month.
  3. Improved Employee Morale and Retention.  Healthier employees are also more loyal. A company-sponsored program sends a message that the your care about your employees’ welfare.

You don’t need a huge upfront investment to get a good ROI on your wellness programs.  For example, one company found that installing a hand sanitizer dispenser in the bathrooms and near doors cut down employee sickness days by 50%.  Not only that, but fewer employees showing up to work sick meant a lower spread of sickness among employees.  Staying healthy reinforces itself.

In another study on company vending machines, swapping junk food for sandwiches and low calorie vegetable and fruit snacks, and replacing sodas with bottled water and milk, significantly improved worker morale and performance by cutting out sugar highs and lows.  The cost to the employer? Nothing, save for a few grumbles from some sweet-toothed employees.

Offering free clinics and screenings proved useful to another business.  A diabetic screening revealed that a significant number of employees were diabetic or pre-diabetic, and encouraged these employees to adopt a healthier diet and life style.  Another tool that employers can use is a subsidized or partially subsidized exercise program.   Smoking cessation programs, in addition to creating a smoke-free company environment, will pay added dividends on an employer’s investment.

A wellness program is also a valuable resource in reducing insurance and medical costs for both employee and employer.  Despite the fact that the U.S. spends more on health care than any other industrialized nation, U.S. citizens are not any healthier; in fact, studies have shown they may be among the unhealthiest people in the world.   Incredibly, preventable chronic illnesses account for approximately 80 percent of illnesses and up to 90 percent of all health care costs.[1]

What this means is that money and pills are not the instant cure – a healthier lifestyle is the answer.  Prevention is the key, and wellness programs are the vehicle to saving on health care costs for both you and your employees.

[1] http://www.wellnessproposals.com/workplace-wellness-programs.htm Retrieved October 27, 2011

Posted in Employee Benefits, Wellness | 2 Comments »

BayPoint Features Non-Profit of the Month – La Cocina!

Tuesday, October 4th, 2011

BayPoint Benefits is excited to announce our non-profit of the month – La Cocina, Cultivating Food Entrepreneurs. As we enter the holiday season our minds drift towards delicious festive foods. What are you going to have on your Thanksgiving table? What is your holiday appetizer going to be? Do you want to learn how to cook “Pan de Muerto”? You can with La Cocina! Join Chef Luis Vazquez from Chaac Mool on October 26th and celebrate the ancient and delicious tradition. Sign up here – http://pandelmuertocookingclass.eventbrite.com/?ref=ebtn

La Cocina is San Francisco’s first Incubator Kitchen. La Cocina was designed to reduce the obstacles that often prevent entrepreneurs from creating successful and sustainable small businesses.  By providing shared resources and an array of industry-specific services, business incubators ensure small businesses can succeed. La Cocina follows this model by providing commercial kitchen space and technical assistance to low-income entrepreneurs who are launching, growing and formalizing food businesses.

Let us tell you more about La Cocina:

La Cocina’s Mission Statement

The mission of La Cocina is to cultivate low-income food entrepreneurs as they formalize and grow their businesses by providing affordable commercial kitchen space, industry-specific technical assistance and access to market opportunities. We focus primarily on women from communities of color and immigrant communities. Our vision is that entrepreneurs will become economically self-sufficient and contribute to a vibrant economy doing what they love to do.

The Story of La Cocina

La Cocina (pronounced la co-see-nah, meaning “The Kitchen” in Spanish) was inspired by its current home, San Francisco’s Mission District. It is located in an ethnically diverse and economically vulnerable neighborhood that thrives in part due to the many small informal businesses that serve the community. As is the case in many cities, food lies at the heart of this community, and you don’t have to look far to find hidden entrepreneurs in the kitchens of many homes.

Recognizing a need to formalize these food businesses and the opportunity created when you turn inconsistent and illegal home restaurants into sustainable legal businesses, organizations like Arriba Juntos, The Women’s Initiative for Self-Employment and The Women’s Foundation of California and one very special and visionary anonymous donor created La Cocina. La Cocina is both the space-a modern building and commercial kitchen that has been featured in Metropolis Magazine—and the program—an innovative business incubator that supports a growing roster of small businesses.

La Cocina was born out of a belief that a community of natural entrepreneurs, given the right resources, can create self-sufficient businesses that benefit themselves, their families, their community, and the whole city. The food that has come out of this kitchen since 2005 reflects that aspiration and, quite simply, tastes amazing.

Breaking Down Barriers

The food industry has a notoriously high cost of entry: the fees for licensed and insured commercial kitchen space, the start-up costs to open a restaurant, the standards set to compete for shelf space at specialty stores and large retailers. Such restrictive barriers to entry often discourage burgeoning food entrepreneurs from launching a business. Those who do face an uphill battle for success in an overwhelming and incredibly crowded marketplace.

La Cocina provides a platform for these motivated entrepreneurs to hone their skills and successfully transition into the highly regulated and competitive food industry.

For more information on La Cocina and their programs check out the website: http://www.lacocinasf.org

Posted in Employee Benefits, Partnership | 4 Comments »

BayPoint Benefits partners with Emerge Workplace Solutions

Wednesday, September 7th, 2011

We are happy to announce a new partnership with Emerge Workplace Solutions!

The Emerge financial wellness program helps employees focus on their jobs by providing practical solutions to everyday financial stressors, achievable recommendations, and customized resources for a full range of personal and job-related financial issues; 24 hours a day, 365 days a year. For more information click on the LINK

The membership is exclusive for BayPoint Benefits clients. BayPoint Benefits clients will be able to access the premier workplace financial wellness benefit, Emerge Workplace Solutions (“Emerge”), FREE (for the lifetime of your company) for all Baypoint clients that currently employ less than 100 employees. We have established a relationship with Emerge to offer our clients an entire Financial Wellness Benefit Program with a complete Wellness Resource Center with best-in-class online multimedia, including interactive courses and quizzes, video e-learning, financial calculators, and webinars; as well as a fast, simple, and FAIR way for employees to receive up to $2,500 in case of a financial emergency.

The program has been designed to operate with NO EXTRA work for HR and absolutely NO liability–ever–to the employer. Emerge is currently retailing for $3.00- $9.00 per employee, per year, but through this partnership Emerge is offering their entire 100% turnkey Financial Wellness Benefit Program FREE (for the lifetime of each company) for any Baypoint Benefit client that currently employs less than 100 employees.

If you are currently a BayPoint Benefits client and you are interested in the program please email melinda.engelman@baypointbenefits.com.

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Posted in Employee Benefits | 2 Comments »

What are Multiple Employer Plans? Part 1

Wednesday, June 15th, 2011

Have you heard people talking about Multiple Employer Plans? Are you curious as to what these are? This series of  blog posts will help you understand the terminology and the benefits of offering Multiple Employer Plans for your business.

Let’s start with some relevant terms:

Multiple Employer Plan (MEP): A retirement plan for businesses that typically have
a common interest, but are not commonly owned or affiliated.

Multiple Employer Plan Sponsor (MEP Sponsor): The organization that sponsors and maintains the MEP and master contract under which adopting employers may adopt a retirement plan; An example of organizations that may sponsor an MEP include a professional employer organization (PEO), or a professional association.

Adopting Employer: The term used to describe an employer that participates in an MEP.

A few Advantages of Multiple Employer Plans:

  1. MEP’s offer great potential as a savings option for small-business owners who want to provide their employees the same flexible features and benefits of a traditional 401(k) plan.
  2. If you are a small businesses you probably have a unique retirement plan-related needs, and very different concerns about the cost of administering a retirement plan than a larger company, therefore, a MEP would be very beneficial.
  3. The MEP structure also offers flexibility for small business owners to remain in this plan construct or to easily graduate to a stand-alone plan when they are ready.

If you are interested in Multiple Employer Plans it’s important to contact your Employee Benefit Adviser.

Stay tuned for the next blog with more information on MEP’s.

Resource: TRANSAMERICA Retirement Services

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Are your employees educated on their benefits?

Thursday, March 31st, 2011

When is the last time you asked your employees if they could tell you about their benefit package? Do your employees understand the benefits you are providing? Most likely the answer is “No.”

Unfortunately many companies have not made it a priority to communicate to their employees the information regarding their benefits. This needs to change. Although employees may not be asking about their benefits it’s so important as an employer to make sure you are taking the time to communicate this information. Someone might ask, why should we care? Understanding benefits will help both the health and financial security of your employees, two things that are key to employee retention. With the cutbacks of HR employees and the confusion around the health reform, it’s sad to say that the communication is lacking. Employees are signing up for benefits and not really thinking through their selections.

What are some of the things you can do as an employer to help educate your employees?

  1. Make sure you understand how your employees prefer to receive benefit communication. Is it by email? Mail? Phone?
  2. Are you working with a benefits to broker to make sure you are getting the best and most appropriate packages for your employees?
  3. Are you tailoring your communication to specific people in your company rather than sending out mass emails etc…?
  4. Research shows – about 24% of employees surveyed indicate that they tend to choose the same benefits; 44% read some information and possibly discuss options with a relative or friend, but in general don’t make many modifications from year to year.

Educating and communicating to your employees the importance of understanding their benefits is key to a healthy work environment. If you have questions regarding benefits it’s always important to contact your benefits adviser.

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You hired a new employee – now what?

Wednesday, March 16th, 2011

When you are working with new employees and addressing an enrollment plan there are some very important steps to take. Here are a few of the steps to help you make the process flow from the beginning to the end. Even if your HR department takes care of these steps, it’s important as an employer or an employee to be aware of the process. 

    1. Provide the new employee with a pre-employment benefits newsletter.
    2. Make sure the employee has the links to all online forms so they can review coverage options.
    3. Supply the new employee with information for registering on carrier website.
    4. Speak with the employee regarding for for spouse. For example the spousal allowance compliance form.
    5. Provide the employee with a benefits comparison if multiple plans are offered.
    6. Make sure the employee is aware of all annual notices required by federal and state law.

      After the employee has gone through eligibility the next step is to address the follow items.

        1. Speak with the employee on how claims are filed, processed and the general time it takes for turnaround.
        2. How to resolve claim issues and who to speak with.
        3. Procedures to address questions and concerns.
        4. Makes sure the employee has all ID cards ad they are printed correctly.

          If you have questions regarding any of these steps it’s important to speak with your employee benefit adviser.

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          BROKER, CARRIER, OR DOING IT YOURSELF?

          Tuesday, March 1st, 2011

          After a recent survey conducted by BayPoint Benefits in early February, it was very obvious that people are unaware of the difference between working with a Benefits Broker, working with a Carrier, or doing it yourself. Most of the confusion comes with the costs associated. Have you ever asked yourself, what is the least expensive way to do something? Most likely the answer is yes. People tend to gravitate to finding ways to cut costs and very often the natural thing to do is go directly to the person that is offering the services you are looking for, example would be Kaiser. However, this is not the case with benefits. By working with a Benefits Broker you are not only getting the extra personal touch and specialized services, but in some cases you are saving money.

          So here is the breakdown to help you next time you are deciding how to implement employee benefits into your company.

          1. The definition of a Carrier is as follows: the organizations that for a contractual fee underwrite the payment of losses or costs incurred by the policyholder within the conditions of the policy. For example this the type of company we know as Blue Shield, Kaiser, etc… Working directly with a carrier especially when you have a large amount of employees can be very confusing and you will not be getting the extra benefits a broker can offer and the specialized services.

          2. The definition of a Broker is as follows: one that acts as an agent for others, as in negotiating contracts, purchases, or sales. In the case of a Health Benefits Broker you may think that you are spending more because you are getting more services, but this is not the case. You are getting the added benefits of working with a broker for the same amount of money. Some of these benefits may include, human resource services and specialized plans for your employees.

          3. Doing it yourself: if you decide to implement health benefits into your organization by yourself be prepared for a lot of work. Although you may feel like you are spending less money, you are spending more because of the time it will take. For individual health benefits doing it yourself is okay, but when you are signing up an entire company it’s very important to use a Health Benefits Broker.

          If you have any questions be sure to contact a Benefits Broker to help you understand the process.

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