Connie Maniscalco

Taking the Pulse of Healthcare Reform

December 13th, 2011
Connie Maniscalco | email author

checking-the-pulse

When someone mentions healthcare reform what exactly are they referring to? This term has become synonymous with The Affordable Care Act that was signed into law March 2010 by President Obama. The law, which rolls out over the next few years with most changes occurring in 2014, is a common topic in America’s boardrooms as companies develop their strategic plans for future growth. The decisions made in these boardrooms over the next few years will provide the backdrop for the future of healthcare coverage in the workplace.

The law was designed with the intention that medical coverage will not only become affordable for every American, but by 2014 each American will be required to have coverage. In addition, employers will be faced with the “Pay or Play” decision in 2014, which simply means that employees will either be provided healthcare by their employer (the Play option) or coverage will have to be purchased through an Exchange on an after tax basis (the Pay option). If employers choose to “Pay” rather than “Play”, employees will be forced to purchase healthcare coverage somewhere else.

The most recent changes that took place in 2011 include coverage for children up to the age of 26, removal of lifetime maximums from existing and new medical plans and no cost sharing for preventive healthcare. In addition, the exclusion of over the counter drugs paid by Flexible Spending accounts was enacted.

Going forward in 2012 employers will be required to report the value of employee health coverage on individual W2’s. The plan value will not be included as taxable income for employees. This W2 reporting is a tracking mechanism and was designed to support the 40% excise tax employers with high cost plans will be subject to in 2018. Employers will want to take a proactive approach and discuss these W2 requirements with their payroll providers to ensure they are planning for these upcoming changes.

As 2014 draws closer, the debate in Congress continues over healthcare reform. The issue is bipartisan and some organizations are jumping on the bandwagon by filing lawsuits claiming the law is unconstitutional. Whatever the outcome, the next few years are going to be very interesting as organizations decide whether or not to use a health plan as a competitive advantage in attracting top talent.

IRS Announces 2012 Contribution Limits

December 9th, 2011
admin | email author

401k1

The Internal Revenue Service (IRS) and the Social Security Administration (SSA) have issuedthe cost of living increases for qualified retirement plans for 2012. The 401(k) elective deferral limit (i.e. 402(g)) has increased for 2012, but the catch-up contribution limit has remained unchanged.

Highlights of the limits for 2012 include the following:

  • 401(k) elective deferral limit - $16, 500 in 2011 to $17, 000 in 2012
  • Catch-up contribution limit - $5,500 in 2011 to $5,500 in 2012
  • Section 415 limit (DC) - $49,000 in 2011 to $50,000 in 2012
  • Section 415 limit (DB) - $195, 000 in 2011 to $200,000 in 2012
  • Section 401(a)(17) includible compensation - $245, 000 in 2011 to $250,000 in 2012
  • HCE definition - $110,000 in 2011 to $115, 000 in 2012
  • Key employee definition - $160,000 in 2011 to $165,000 in 2012
  • FICA taxable wage base - $106, 800 in 2011 to $110,100 in 2012

The full press release from the IRS announcing this year’s contribution limits can be found here.

10 Predictions for 2012: The Top Trends in Talent Management and Recruiting

December 6th, 2011
admin | email author
The following 10 Predictions for 2012 article was written by Dr. John Sullivan and posted on the ERE Daily website.

2012 Will Be “The Year of the Mobile Platform”

By the end of next year, even the skeptics will have to admit that the mobile platform will have become the dominant communications and interaction platform by early-adopting best-practice organizations. The capabilities afforded users of smartphones and tablet devices grows immensely day by day. Long before unified inboxes existed for the desktop, smart device users could see all incoming e-mail, social messaging, text messaging, and voice and video messaging in a single place. Tablets will become the virtual classroom, and an emerging class of tools will let employees manage almost every aspect of their professional life digitally. During the next year, talent management leaders need to invest heavily supporting execution of talent management initiatives across mobile.

The Additional Top Nine!

Intense hiring competition will return in selected areas — global economic issues will persist for years to come, but the global war for talent will continue spiking in key regions an industries. While growth has slowed somewhat in China, Australia and Southeast Asia — including India — continue to see dramatic demand for skilled talent. In the U.S. and Europe, demand is still largely limited to certain industries where skills shortages have been an issue for years. In high tech inclusive of medical technologies, 2012 will see a significant escalation in the war for top talent. As innovators and game changers step out of established tech firms like Facebook, Apple, Google, Twitter, and Zynga, a whole new breed to tech startups will be born each vying for the best of the best. While recruiting will move forward at a breathtaking pace, so too will “rapid” leadership development.

Retention issues will increase dramatically — almost every survey shows that despite high engagement scores, more than a majority of employees are willing to quit their current job as soon as a better opportunity comes along. I am predicting that turnover rates in high-demand occupations will increase by 25% during the next year and because most corporate retention programs have been so severely degraded, retention could turn out to be the highest-economic-impact area in all of talent management. Rather than the traditional “one-size-fits-all” retention strategy, a targeted personalized approach will be required if you expect to have a reasonable chance to retain your top talent.

Social media increases its impact by becoming more data-driven — most firms jumped on the social media bandwagon, but unfortunately the trial-and-error approach used by most has produced only mediocre results. Adapting social media tools from the business coupled with strong analytics will allow a more focused approach that harnesses and directs the effort of all employees on social media. Talent leaders will increasingly see the value of a combination of internal and external social media approaches for managing and developing talent.

Remote work changes everything in talent management — the continued growth of technology, social media, and easy communications now makes it possible for most knowledge work and team activities to occur remotely. Allowing top talent to work “wherever they want to work” improves retention and makes recruiting dramatically easier. Unfortunately, even though it is now possible for as much as 50% of a firm’s jobs to be done remotely, manager and HR resistance has limited the trend. Fortunately, managers and talent management leaders have begun to realize that teamwork, learning, development, recruiting, and best-practice sharing can now successfully be accomplished using remote methods. Firms like IBM and Cisco have led the way in reducing and eliminating barriers to remote work.

The need for speed shifts the balance between development and recruiting — historically, best practice within corporations has been to build and develop primarily from within. However, as the speed of change in business continues to increase and the number of firms that copy the “Apple model” (where firm is continually crossing industry boundaries) increases, talent managers will need to rethink the “develop internally first” approach. In many cases, recruiting becomes a more viable option because there simply isn’t time for current employees to develop completely new skills. As a result, the trend will be to continually shift the balance toward recruiting for immediate needs and the use of contingent labor for short-duration opportunities and problems.

Employee referrals are coupled with social media — the employeereferral program in many organizations is operated in isolation as are the organizations’ social media efforts, but talent managers are beginning to realize that the real strength of social media is relationship-building by your employees. With proper coordination, employee relationships can easily be turned into employee referrals. This realization will lead to a shift away from recruiters and toward relying on employees to build social media contacts and relationships. The net result will be that as many as 60% of all hires will come from the combined efforts. The strength of these relationships will lead to better assessment and the highest-quality hires from employee referrals.

Employer branding returns — Employer branding and building talent communities are the only long-term strategies in recruiting. True branding is rarely practiced (hint: it’s not recruitment marketing) especially in the cash-strapped function of today, but years of layoffs, cuts in compensation, and generally bad press for business in general may force firms to invest in true branding. The increased use of social media and frequent visits to employee criticism sites (like Glassdoor.com), make not managing employer brand perception a risky proposition. While corporations will never control their employer brand, they can monitor and influence in a direction that isn’t catastrophic to recruiting and retention.

The candidate experience is finally getting the attention it deserves — Organizations have never treated candidates as well as they did their customers, but the high jobless rate has allowed corporations to essentially abuse some applicants. As competition for talent increases and as more applicants visit employer criticism sites like Glassdoor.com, talent leaders will be forced to modify their approach. At the very least, firms will more closely monitor candidate experience metrics as they realize that treating applicants poorly can not only drive away other high-quality applicants but it can also lose them sales and customers.

Forward-looking metrics begin to dominate — Almost all current talent management and recruiting metrics are backward looking, in that they tell you what happened in the past. Other business functions like supply chain, production, and finance have long championed the use of “forward-looking” or predictive metrics and the time is finally coming when talent management leaders will shift their metrics emphasis. Forward-looking metrics can not only improve decision-making but they can also help to prevent or mitigate future talent problems.

For the full article, please visit ERE Daily.

Helios Participates In SHRM Day On The Hill

December 5th, 2011
Matt Walker | email author

hill

On Wednesday November 30, 2011, one of our HRBP/Senior Talent Acquisition Consultants, Matt Walker, gratefully joined the SHRM Advocacy Team on the Hill for the day to help inform legislators on how current public policy issues can affect employees, employers, and the HR profession as a whole. The SHRM Advocacy Team initiative is designed for HR professionals to participate and influence federal public policy and regulatory efforts. SHRM understands how vital member participation is to advancing the views of the profession on Capitol Hill and provides members with opportunities to “put a face” behind HR and to let their voices be heard.

Looking for information on SHRM’s Advocacy Team? SHRM A-Team

Kathy Albarado

Survival Leadership

December 2nd, 2011
Kathy Albarado | email author

I am excited to share that Dr. Steve Gladis is coming to our office today to meet with our leadership team to help enhance our effectiveness.  Steve is a leading Executive Coach, Motivational Speaker and Leadership Trainer, GMU professor and Author of 16 Books on Leadership and Communication! Steve also has a popular leadership blog that was ranked #5 out of the Top 100 Leadership blogs. I was introduced to Steve through a speaking engagement I attended offered by Women in Technology and now we both serve on the Board of Directors for the Fairfax Chamber of Commerce as well.  We are really looking forward to an inspiring, engaging, and energizing session!

leadership