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June 2010
Health Care Reform and the Rebounding Economy Necessitate Renewed HR Focus Just as companies are beginning to see “light at the end of the tunnel” and business starts to spurt back to life, there are plenty of new challenges to address that will impact the way companies do business and their bottom lines. Healthcare reform has finally become law, and there are many issues employers need to address now to begin to comply. How do employers know they are hiring the right people for the jobs? Background and reference checks are necessary to protect the business and other employees; however all background and reference checks are not the same. If those issues aren’t enough to keep employers awake at night, keep in mind that as the economy rebounds, employees are itching to jump ship and retention will be an issue. Planning for Implementation of Healthcare Reform Background and Reference Checks Require Care |
Other News and Tips from Businesses with Fewer than 100 Employees Must Comply with Impact of Health Care Reform on Small Businesses Standards Set for Internships in the “For Profit” Private Sector New FLSA Misclassification Bill Introduced in Both Houses of Congress Greenville Arena District Carol Edwards, former VP of HR at Fuji Film, joins HR Experts On Demand as HR Consultant “The Demand for On Demand” Jill Vales featured by GSA Business
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Planning for Implementation of Healthcare Reform
 With approximately 2800 pages of text, this legislation is complex, multi-faceted and affects all employers with two or more employees. While all the changes do not take effect immediately, employers must begin now to gain an understanding of the Act’s provisions and timetables. Critical thinking will be required relative to the effects on financial plans and the ability to continue to attract and retain employees.
Impacts of health care reform on small businesses, those with less than 50 employee full-time equivalents, are many, as outlined here.
For employers that provide retiree health insurance, a retiree medical subsidy will be available no later than June 21, 2010, to reimburse employers up to 80% of the cost of providing health insurance to retirees between ages 55 and 64, their spouses, and dependents. Reimbursement will be made for claims in excess of $15,000 and less than $90.000. Also effective 1-1-2011, employers must include the aggregate cost of employer sponsored health care on employees’ W-2s. Employers need to identify the cost and communicate with affected internal departments and third party payroll providers. HR Experts On DemandSM recommends employers take a close look at their healthcare plans, carriers and brokers to ensure they plan for the immediate and long-term financial impact of these changes and others that go into effect in the coming years. HRExpertsOnDemand.com features weekly Breaking News updates, including new developments related to health care. |
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Background and Reference Checks Require Care
Background and reference checks can be performed in house or by third-party services. Regardless of which approach is used, HR Experts On DemandSM recommends you follow these guidelines:
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 During this recession, there have been fewer jobs available than the past, resulting in lower unplanned turnover for most occupations. Many employers have had to make deep cuts in all facets of their organization that affect employees, such as reduction is wages, benefits, hours of work, training and promotion opportunities, and combining jobs creating additional work. As a result, many employees report feeling overworked, underpaid, and underappreciated. However, as the economy rebounds and more employers begin to hire, recent surveys indicate the majority of currently employed workers intend to look for a new job or change jobs. Clear, consistent communication is one of the best tools to avoid this type of turnover. HR Experts On DemandSM recommends employers tell employees how the business is doing, and when wage increases, benefits, and other reductions expect to be returned to normal. Take a look at recognition strategies and update if necessary to include meaningful rewards, whether monetary or non-monetary. Even a few words of sincere praise for specific accomplishments will make a difference. Providing more flexibility in scheduling is increasingly appreciated by employees of all ages. Confidential employee surveys conducted by third parties also provide valuable insight regarding attitudes and job satisfaction. Taking time to effectively address the retention issue now will help avoid the loss of productive talent and costs of replacement. |
DISCLAIMER: Any information, recommendations, advice and opinions provided are based on general human resource management fundamentals, practices and principles, and are not legal opinions or guaranteed outcomes. We recommend, as part of a team approach to management, that you consider consulting with your legal counsel to address any legal concerns related to significant human resources issues and binding contracts.
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