The Consequences of Ineffective Business Communication

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When did communication become a transaction rather than an interaction?

Communication should be a shared understanding between sender and receiver, and over time, some people seem to have lost their way. Instead of creating a mutual understanding to drive desired outcomes, too many people fire off messages regardless of how they may be received.

Also, advanced technology and the shift from in-person to hybrid work environments play a significant part in the disconnect between communication and successful outcomes. Ready for the scary part? U.S. businesses lose $1.2 trillion every year to unsuccessful communication practices!

Recognizing the consequences of ineffective communication and learning effective communication tools and practices helps leaders keep their top talent and ensures their business continues to grow.

The challenges of poor communication

Grammarly surveyed 251 business leaders and 1,001 knowledge workers in the US to find out what is getting in the way of collaboration and productivity.

What was the root problem? Ineffective communication!

The majority of knowledge workers (86%) reported spending half their workweek (20 hours!) experiencing communication issues, including:

  • Not receiving timely responses from others
  • Communicating clearly, so receivers understand the message
  • Understanding messages received
  • Keeping up with the frequency of communication
  • Identifying the proper tone to use in messages
  • Choosing the right platform or tool for communication
  • Difficulty understanding next steps or responsibilities

Business leaders believe that they and their teams spend too much time and energy resolving miscommunications every week. By spending too much time on miscommunications, business leaders shuffle around to manage negative consequences instead of helping their team pave a path forward and work together.

Consequences of ineffective communication

Where does all the lost time go?

It’s spent resolving communication issues, addressing mistakes caused by misunderstandings, and following up on unmet deadlines and deliverables. Activities like these can take up to 19% of your team’s workweek. However, the time is lost, not free. Businesses risk losing as much as $47.37 per employee each day due to poor business communication–that’s $12,506 per employee a year!

The price only skyrockets when you consider that the time lost could have been put to use in more productive areas. Instead of closing new deals and enhancing the client experience, leaders find themselves losing business from unmet deadlines and unsatisfied clients.

These consequences are interconnected and can make you feel like you’re in a negative feedback loop. Imagine you are finally back on track and starting a new project. What if you have difficulty understanding your next steps or responsibilities due to poor communication? You’re back to stage one: resolving communication issues and trying to understand what to do next!

Quit resolving problems and start implementing solutions

Organizations need to proactively manage ineffective communications and implement practices to increase the amount of time spent communicating effectively. Try these strategies to get your team on the same page:

  1. Consider your tone and timing: What you are saying and how you say it is important. Create a culture around communication, set guidelines to nurture empathy and emotional intelligence, and build awareness of tone and timing. Once you do this, you’ll help your company and team members communicate better.
  2. Curate and clarify communication channels: There are various ways to communicate internally. To do this, define the purpose of each channel so your team can quickly identify the most appropriate channel for their message. When you strategically organize your tech tools, teams streamline and enable better communication.
  3. Understand your audience: Everyone has a different kind of communication style. If you have a coworker who needs a lot of information, communicate with more detail and instruction. If another person experiences information overload often, be clear and concise in your messaging.
  4. Be attentive: Someone may seem like they’re listening, but listening and paying attention are not the same thing. Often, people overlook this simple tip, but it’s all about actively listening and staying attentive when interacting with others.
  5. Be clear: Clarity is the most critical part of effective communication. While speaking or writing, be clear about what you want to convey. However, there’s always the possibility someone will still not understand, so encourage your team to ask questions to ensure shared understanding.
  6. Empower those in the middle: Your middle managers are the messengers throughout your organization, so empower them with effective communication strategies. This will equip them to deliver consistent messages and provide answers to any emerging questions or needs. Also, hold regular meetings to provide updates or information they can share with their teams. When your managers are in the know, you’ll notice more consistency and less misinformation.

Lead effectively

Business communication is the backbone of your company’s ability to innovate, collaborate, perform, and achieve successful outcomes. It is an exchange that takes up a lot of time and energy from your team’s workweek; therefore, it’s essential to have solid communication!

When you practice and implement effective communication in your company, you are not merely cleaning up processes and removing friction. You become a leader that can manage the present, handle the unpredictable, and sustain a talented team that will help you pave a path to a brighter future.

 

Content provided by Q4iNetwork and partners

Photo by bowie15

Just the Facts: Employee Healthcare Literacy

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As mentioned in the previous week’s blog—only 4 to 14% of adults in the United States have a basic understanding of health insurance.

What does this mean? It means out of the current US population of 329.5 million, only 13.2 to 46.1 million people have the knowledge to understand their health insurance fully!

Instead of leaving your employees out in the cold and leaving their decisions about health insurance and healthcare to chance, help your employees understand why healthcare literacy is so important, so it can empower them to make good decisions.

The first step? Understanding what healthcare literacy is.

What is healthcare literacy?

It is how people interpret or act on health information and services. For example, receiving medication from a doctor and knowing how to read the label to decipher how much medicine to take or understanding and interpreting a medical invoice is considered a form of healthcare literacy.

There are two different types:

  • Personal healthcare literacy, or how well someone can find and understand health information/services needed.
  • Organizational healthcare literacy, or how well businesses/organizations help their employees find health information/services required.

Both types are about using health information and services to make the best health decisions possible.

What can affect healthcare literacy?

Many factors can affect someone’s healthcare literacy. For instance, if someone does not understand medical terms, they may not be able to understand or interpret a doctor’s diagnosis. Other factors that could potentially affect healthcare literacy are lacking an understanding of the healthcare system and how it works and other personal factors such as age, income, education, culture, language abilities, reading skills, writing skills, and math skills.

What happens if someone has poor healthcare literacy?

A person with poor healthcare literacy will often delay or avoid care, will not understand the costs associated with out-of-network care, will not ask their employer questions about their health insurance plan, and will be less likely to use preventive services and care, such as getting a flu shot.

Why is employee healthcare literacy important?

At some point, your employees will need to use their health insurance to access and understand health information and services like prescription services.

Their level of healthcare literacy affects:

  • The ability to navigate their health insurance plan and the healthcare system to find needed doctors and services.
  • Knowing when to share personal information with healthcare providers.
  • Practicing self-care and at-home procedures, as well as using preventative health services.
  • Understanding concepts such as cost-benefit ratios (weighing the risks and benefits of receiving medical treatment).

Having strong healthcare literacy lets your employees find the information and services they need, effectively communicate with their healthcare providers about needs/preferences, and understand their health condition and choices they have about treatments and doctors so they can decide what services and options are the best for them.

How can you, as an employer, help improve healthcare literacy?

A good step on the path to improving literacy is to ask your employees about their understanding of health insurance terms and concepts. You can use their answers and thoughts to specifically address areas where knowledge might be lacking.

Also, be sure to lean on and use your broker or advisor as a resource. Look at what they offer in terms of support to members in understanding their benefits and being healthcare literate. This can include resources, online portals, and mobile apps.

Understanding is one of many steps

Understanding healthcare literacy and what it is will help your employees understand what it is as well. Increasing healthcare literacy in your organization will, in turn, create well-informed and knowledgeable employees who feel confident and take charge of their healthcare decisions. And, as they say, knowledge is power.

 

Content provided by Q4iNetwork and partners

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Why Healthcare Literacy Should Be a Top Concern for Employers (And What to Do About It)

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These days, offering a group health plan for your employees is crucial for reducing turnover, keeping employees engaged, and attracting talent. But offering benefits is a huge investment for employers, making it an often stressful piece of running a business. Like any significant investment, group health plans become easier to implement when you can bring in a solid return on investment.

One major factor contributing to your ROI is the percentage of employees who actually use the benefits you offer. A chief component of whether they use their benefits relies on their ability to understand their plan. Unfortunately, people often struggle to understand their benefits—in fact, only 4-14% of adults have a basic grasp of health insurance. In the US, a whopping nine out of ten adults have difficulty using health information. Imagine the ratio of your employees who feel comfortable navigating their benefits plan and understanding the benefits available. Statistically, it reflects these numbers.

Lack of healthcare literacy is an epidemic that affects the health and wellbeing of employees. Lack of understanding leads employees to miss out on accessing and using their benefits, which has a direct correlation on their health outcomes.

For the sake of your employees’ wellbeing and for the value of your investment, it’s crucial you take steps to help improve your employees’ ability to understand, navigate, and use their health plans.

Use plain language

When communicating with your employees about their health plan, make sure you avoid healthcare jargon and confusing terms. Offer explanations for terms they might come across so they can better navigate unfamiliar language. Healthcare.gov offers an excellent glossary of terms and definitions you can share with your employees. Also, read through any documents your provider will offer your employees and familiarize yourself with them. If you find yourself having questions, chances are your employees will have those same questions.

Be proactive in helping employees find clear answers, for the easier it is for them to understand what they’re reading, the more likely they will use their benefits.

Communicate often

If you want your employees to take full advantage of their health plan, it’s important that it’s kept top of mind for them—this means making sure you’re not only communicating about benefits around open enrollment/renewal season.

Talking about benefits just once a year isn’t going to help your employees stay engaged with their health plan. Consider adding communications about their benefits in internal newsletters, employee reviews, and quarterly meetings. Keep the conversation going year-round, so health benefits always stay at the top of their mind.

Tailor your message

When talking about your benefits plan, create conversations and messages that center on the differing wants and needs of your employee population.

  • Have employees who are of the age where they may be considering starting a family? Make sure to remind them of your family planning benefits.
  • Is there an emotionally challenging situation your employees might be facing? (Say, a pandemic?) Remind them of their mental health benefits.
  • Have employees who are traveling? Don’t forget to highlight their access to your telehealth benefits.

Whatever your health plan offers, it’s crucial to understand how it addresses your employees’ needs so that you can create meaningful and engaging conversations based on specific concerns.

Get the message out

You won’t be able to overturn healthcare illiteracy overnight. Still, with a tailored, clear, and thoughtful communication year-round, you’ll be able to affect your employees’ engagement with their health benefits. And through that effort, you’ll empower them to preserve their health and wellbeing. When in doubt, talk to your benefits advisor for suggestions on how to increase healthcare literacy within your company and in turn, increase ROI on your investment.

 

Content provided by Q4iNetwork and partners

Photo by fizkes

Time to Turnover a New Employee Retention Strategy

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It’s no secret that employee turnover is expensive and time-consuming. The Work Institute’s Retention Report found that the estimated cost of turnover ranges from 33% to up to 200% (!) of the departing employee’s salary. The price only snowballs once you consider that, on average, companies lose 18% of their workforce to turnover each year.

There’s good news— the Retention Report also found that 75% of employee turnover is preventable. By understanding the impact of turnover and applying employee retention strategies, companies can prevent turnover and retain the talent necessary for promoting organizational growth.

The turnover impact

Although most people get hyper-focused on the costs, the consequences outside of costs matter most. The most substantial impact of turnover is damage to your team and company. Specifically, a company may experience:

  • Lost productivity: Colleagues pick up the leaving team member’s workload. This creates lost productivity as employees stretch themselves thin across multiple roles.
  • Depleted employee morale: When a team member departs, it can take a toll on the team. The departure may lead to frustration, resentment, and burnout. Team members may start questioning whether they, too, should be looking for a new opportunity.
  • Diminished employer brand: Companies with high turnover are quickly branded as a “revolving door.” This reputation seems unattractive to particular job seekers, and any open roles can draw in individuals not interested in a long-term position.
  • More turnover: When morale is down, and workload is high, employees become overworked, unengaged, and susceptible to burnout – leading to more turnover. 

Employee retention strategies

Most people quit their jobs due to a lack of career advancement opportunities, recognition, and compensation. Be proactive and avoid possible turnover by applying these employee retention strategies to achieve satisfied, loyal, and committed employees.

Provide opportunities to grow and develop

Helping employees achieve their professional goals shows that the company is invested in their future and gives employees a sense of purpose. On top of that, research shows that most millennials and Gen-Z workers will choose a job with lower pay if they see development opportunities. You can encourage growth and development through these activities:

  • Have quarterly one-on-one meetings to discuss an employee’s Professional Development Plan, performance, and strengths. Identify additional support or training needs. These meetings also benefit the manager because it helps them better understand what development opportunities are most beneficial.
  • Take a collaborative approach to organizational goal setting and invite your employees to participate.
  • Prioritize skill development by working with individuals to identify actual and desired skills. Think about which skills will push them to become more proficient in their jobs and find opportunities for these skills. For example, if someone needs to enhance their writing skills, encourage them to take a business writing class.
  • Encourage continuous learning by having employees attend industry events, conferences, and educational webinars.

Foster a healthy work environment

Your employees’ physical and mental well-being should be one of your top priorities. You can encourage people to set boundaries to respect their work-life balance, such as turning off notifications when the workday is over or having them use their vacation time.

Another method is offering hybrid workplaces. Currently, 74% of the US workforce are willing to quit a job to work remotely. Hybrid and remote work situations are a win-win for everyone. Employees save time and money commuting, have an improved work-life balance, and have fewer distractions. Also, employers reduce absenteeism and overhead costs and experience no geographical constraints when hiring. This means a bigger pool of talent!

Practice a feedback culture

Employees need constructive and positive feedback to improve, and they expect it. Consider giving feedback frequently and often to motivate employees.

But remember that feedback is an exchange—employees want their voice to be heard. Start by having an open-door policy and genuinely listening to concerns. Most importantly, take action on their feedback because it will dramatically improve retention, as 90% of employees say they are more likely to stay at a company that takes and acts on feedback.

When you foster a feedback culture, you show your employees you take concerns seriously. This will also make employees feel more comfortable when giving feedback because you earned their trust.

Give recognition and rewards

Employees who feel appreciated work harder and stay longer at companies, but over 80% of employees say they don’t feel recognized or rewarded.

Employers can significantly impact their employees’ retention, engagement, and loyalty by showing recognition and gratitude for their contributions and successes. Here are a few methods to consider:

  • Create a formal employee recognition program and rewards system
  • Leverage your communication platforms to allow employees to thank their peers and give shout outs
  • Write an employee recognition letter
  • Give positive feedback during meetings
  • Take your team out for dinner to show your appreciation
  • Provide gift cards or physical rewards

Hire strategically

People can develop skills and expertise, but hiring someone who mirrors company values will help you retain loyal and engaged employees who feel more comfortable contributing to the organization.

When hiring, first consider asking questions related to your company values and explain how the role correlates with those values. This will also help them better understand what is expected of them and whether they are the right cultural fit.

Offer appropriate compensation

Compensation is essential to any retention strategy. No matter how valued, content, and supported an employee may feel, they are likely to look for alternative career opportunities if they feel their current company is not adequately compensating for their work.

Start by reassessing compensation. Are you providing transparency around their pay? Are you within industry compensation standards? Do you offer well-rounded benefits?

If you think this could be a pain point for your employees, consider offering a competitive salary, raises, bonuses, awards, and better benefits. For example, you can provide health insurance, leave benefits, retirement planning, and wellness benefits.

The benefits of employee retention

With employee retention, you’ll save time and money recruiting, onboarding, and training new hires because you’ll have more long-term employees who have had the time to develop their abilities, knowledge, and expertise. They can accomplish tasks within a shorter time and are more committed to the organization’s success. The longer an employee stays, the more value they add to the organization.

More importantly, you’ll have happy employees that can exude that feeling to their clients and peers. Happiness is linked to high engagement, which leads to a better client experience, and highly engaged employees are 1.8 times more likely to say they’ll be working at their current organization a year from now.

A great team can make the difference between success and failure. Take the first step in retaining your top talent because they are the key to organizational growth and sustainability.

 

Content provided by Q4iNetwork and partners

Photo by ilixe48

Show Some Appreciation on Employee Appreciation Day (and Beyond)

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You have an awesome team that works hard and exemplifies your company values day after day and year after year. But in the hustle and bustle of the everyday grind, it can be easy to forget to show your employees the appreciation they deserve.

Employee Appreciation Day, which falls on the first Friday of every March, is an opportunity for managers, employers, leadership, and human resources to remember the importance of appreciating their employees. Studies have shown that appreciation builds trust, boosts productivity, and decreases turnover—after all, who doesn’t like to feel appreciated?

Below are some great ways to engage in the appreciation of your employees, showing them how much you care.

Touch base with your employees often

Treating your employees like items to check off on a to-do list might be easier for your productivity, but it does not make them feel appreciated. Take time to talk with your employees, whether it’s something as simple as saying “Good morning” or asking “How are you?”, writing a thank you note, talking to them in a quick Zoom call, or by setting aside some one-on-one time to check in with how projects, or life, is going. Building relationships by intentionally seeking out time to connect is a great way to make employees feel seen and appreciated.

Treat your team to fun activities

If your team is still working from home, you can host a virtual picnic, happy hour, or team lunch/dinner. You can also do a little team bonding by playing virtual online games together or doing a virtual karaoke session. 

Give meaningful feedback

Have you ever been told “great job!” without any explanation as to why you did a great job? While it may feel good, it’s not all that helpful. Telling your employees “great job!” is all well and good, but make sure to give meaningful feedback they can glean concrete information from. When talking with your employees, take time to address their professional development, what they’re doing well, and where they need to improve. Engaging in a conversation about their growth shows them you want them to succeed on a personal level.

Offer extra time off

Did your employees work extra hard and go above and beyond on a project or campaign? Reward them with a few extra days off or even a whole week off! They will appreciate the spare time to rest, recharge, and spend time with their friends and loved ones.

Create and build a culture around appreciation

Appreciation is the most impactful when it is already built in your company culture and it’s an expectation, instead of an afterthought. Consider offering opportunities for growth and advancement, like regular training courses, opportunities for mentorship, and employee recognition programs that offer perks for participation. When employees are offered opportunities to learn and grow, they will give their best selves to your company. 

Be flexible

No, we’re not telling you to be able to touch your shoulder with your foot. We mean flexible in the sense of allowing your employees to have time to take breaks whenever needed, giving them a no-meetings day, letting them log off early, or letting them choose what days they want to work during the week. Employees who are empowered to manage their own time will be more engaged and productive.

Celebrate life milestones

You don’t have to make everything all about work! Celebrate whenever significant events happen—like the birth of a child or the addition of a new furry friend, like a dog or cat. You can also celebrate the little things, like holidays, birthdays, or work anniversaries. Work can be a place of community, where everyone shares in each other’s successes.

Give thanks to your employees every day of the year

While there is a day set aside to specifically celebrate employees, don’t keep silent the remaining 364 days of the year. Your team is there every day for you, working hard and supporting you and your company goals and values. Show them just how much you appreciate them, and in return, you will have a well-rounded company and a coveted culture.

 

Content provided by Q4iNetwork and partners

Photo by fizkes

 

 

 

 

 

 

The Power of “I Don’t Know”

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When we’re kids, asking questions comes naturally to us. Anyone who’s ever met a toddler would recognize the endless “Why, why, why” anywhere. But somewhere along the way, many of us begin to censor our questions. The reasons change for us as we grow:

  • We become afraid.
  • We don’t want to look stupid in front of our friends.
  • We don’t want to appear like we don’t know how to do our jobs.
  • We’re don’t want to look incompetent.

This is a habit that builds up slowly over time. It’s related directly to insecurity, which can be challenging to face. And for those of us who have a hard time admitting to others that we don’t know, it can be hard to admit to ourselves when we’re avoiding the truth.

Holding back hurts more than it helps

When we hold in the fact that we don’t know, we do things like nod along when we’re really lost in meetings. Or we say we’re fine to start on a project before we have all the information we need. These reactions will eventually compound on themselves, making it even more difficult to do our jobs. Think about it:

  1. You say you understand a request before you do.
  2. You start working on it with only a partial understanding of the desired outcome.
  3. You flounder, spend way too much time trying to come up with a result that makes sense.
  4. You eventually hand it back to your team only to have it handed back to you, and the whole process starts over again.

The desire to react in a way that shows your competence is extremely human and very normal. However, when we allow this reaction to begin working its way into how we navigate our jobs, it has the exact opposite effect we want it to have.

When we are too afraid to ask questions, we limit ourselves to the tools we already have. We remove any possibility of gaining more understanding, cutting ourselves off from learning and development, stagnating our growth.

You’ve got the power

Saying “I don’t know” does not make you weak. In fact, it’s quite the opposite. Learning to say “I don’t know” actually gives you power!

  • It provides an opportunity for you to develop relationships with your colleagues, creating space for collaboration and connection.
  • It empowers your teammates to ask the questions they might be holding back.
  • It encourages deeper critical thinking and more intentional decision-making.
  • It challenges your team to fill in the gaps, define foggy reasoning, and find more effective solutions.
  • It gives you a chance to learn and grow.

If you find yourself constantly reaching for an answer, even when there isn’t one, then you may want to evaluate your motives. Are you trying to position yourself as a leader? Are you attempting to look competent and knowledgeable? Are you worried your job will be in jeopardy if you reveal you don’t have the answer to something?

If any of these ring true, then consider two things:

  • Are you in a toxic workplace that discourages people from asking for help? Will your job really be affected if you ask questions? Are your colleagues going to stop trusting you if you say you don’t know something? If so, it’s time to find a better, healthier workplace.
  • If the above doesn’t seem right, it may be time to have a conversation with yourself. Ask yourself why you’re motivated to fill in the blank when you don’t have a real answer. Dig into what’s driving you. Find out what you’re afraid of and face it.

No such thing as a foolish question

Next time you feel yourself searching for an answer that isn’t there, or suppressing a question that’s arising, take a moment to pause and consider. Is your question foolish? Probably not. Try taking a risk and asking, then pay attention to what happens afterward.

Did the sky fall? Did you lose your job? Or did your team member light up and give a great answer that started a lively discussion? Did you get what you needed?

Do you feel more empowered now that you have an answer?

You deserve to feel secure in your knowledge and in what you bring to the table. Each of us comes with our strengths, and you have yours. Asking questions is a part of life, and it doesn’t detract from who we are or how capable we are of getting the job done. It does the opposite. It’s a part of growth. And it’s a crucial part of allowing yourself to be human, happy, and successful.

 

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Go From “Great Candidate” to “Job Offer”

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Moving from a great candidate to a great offer is not always easy. You need to make your coveted candidate an ideal offer. One that’s going to make them as excited to say those three little words as you are to hear them.

“Yes, I accept!”

Gone are the days of expecting an immediate yes. Employers, hiring managers, and human resource teams realize that making an offer is a nuanced process that needs to take both parties into account. Job seekers have more leverage than ever, and employers will have to adjust their expectations and procedures accordingly.

Get over the speed bumps

Because quality candidates are likely to have several leads, they may not be willing to wait too long for an interview or offer. Moving high-priority candidates through the process quickly can be the difference between being successful and being ghosted.

If your current search procedure involves multiple interviews, hiring committee meetings, and approval processes, now is the time to evaluate the necessity of each component. Get rid of any extraneous requirements, then find ways to streamline the critical pieces so your progress doesn’t get stalled, and your candidates don’t get frustrated.

You may also need to adjust your strategy and timelines regarding the acceptance of an offer. Today’s job seekers may need more time to fully evaluate their options and commit to a decision. This might sound like a double standard, but it’s important to remember that hiring isn’t just about what’s right for the hiring manager or the organization. For your candidate, it’s all about making sure you’re the best fit for them. If the answer is no, it’s in everyone’s best interest to have that person move on. If the answer is yes, the extra day or two will be well worth the wait.

Be flexible and honest

Hiring contracts have always been negotiable, but whether job seekers decide to do so depends largely on the market. When job demand is high and positions are few, candidates are much more willing to accept an offer as is. Likewise, employers should expect negotiations and counteroffers when jobs are readily available, and applicants are few and far between.

Once again, it’s time to look at your processes. Are you offering fair compensation, generous paid time off, and attractive employee benefits? If so, are you including these things in your job postings? Your future employees aren’t just making major career decisions. They’re major financial decisions as well. And to do that, they’ve got to have adequate salary information. Don’t let people get through the process only to find out they can’t accept the job. It’s a waste of their time and yours.

Be honest about what you’re offering. If, for whatever reason, you don’t have any wiggle room in your offers, be upfront about that from the start. If you neglect to make that clear to your candidates during the search and interview process, you could quickly get burned when it comes time to hire.

Let’s take a meeting

Candidates who negotiate during the offer phase aren’t doing it to be difficult or to offend you. It’s all part of the decision-making process. Being flexible on some of these things could give you a huge hiring advantage.

Keep in mind that negotiating with a potential new hire can easily create a happy, engaged, loyal employee. And in many cases, it’s not just about cash. Every applicant comes from a unique situation and has a fantastic set of personal and professional goals. Here are some common issues your future employees may be wrestling with:

  • Student loans
  • Stagnant salary
  • Long commutes
  • Inflexible schedules
  • Affordable childcare
  • Lack of paid time off
  • Toxic boss or culture
  • Non-existent career paths
  • Limited professional development
  • Health, vision, and dental coverage

If you can make life easier in any of these areas, it just might tip the scales in your favor.

Find the right fit

To make the negotiation process go smoothly, you’ll want to consider a few key things before going in:

  • What is the total salary range for the position, and where do new hires fall within it?
  • What maximum dollar amount can you realistically offer without offending your current staff members?
  • Are there additional ways to compensate employees that don’t involve increasing wages?
  • Do you have other qualified candidates in line for the position?

Never assume you know what your candidate wants from an offer. It could be an unrealistic expectation, but it could also be a simple and reasonable request.

If your hiring process is transparent and designed to filter for cultural fit, it will likely weed out any unrealistic expectation candidates— and you’ll be left with a talent pool that’s worth investing in.

 

Content provided by Q4iNetwork and partners

Photo by kadettmann

Time to Face the Strange (Ch-ch-changes)

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Are you gearing up for some organizational change?

Whether it’s a complete restructure, new sales process, revised PTO policy, different employee benefits plan, or simply an office move…to the average employee, it all means the same thing.

Change.

In other words, the way you are doing things today is not the way you will be doing them tomorrow.

Let’s be honest. Change scares some people. Okay, a lot of people. And the longer your processes have been in place, the harder it will be to get the team onboard. Even if you know your plan will make things infinitely better for everyone in the long run, you’ll still run into plenty of folks who just want things to stay the same. “Free espresso all day? Bah! I prefer my daily 9:06 coffee break. Even if I have to walk three blocks and pay five bucks.”

So what should you do if change is in the air at your company?

Create an action plan

Spend some time examining your current structure and what changes will need to be made to support the new model. The more detailed you are in this process, the better. Choose several key people to weigh in to get a full perspective of the needs in various departments and areas.

Create an action plan and select individuals who are both knowledgeable and enthusiastic about overseeing each step of the process, not just for accountability purposes but also to be goodwill ambassadors of sorts. If Grumpy Gary is in charge of training everyone on the new database, it might not go so well. Friendly Fred? Now that’s more like it.

Be prepared

Recognize that people are going to react to change differently. Friendly Fred could surprise you by turning into an Angry Andy. You just never know. Be prepared to encounter any of the following:

  • Change embracers who can’t wait to get started. These dynamos are planning out the details before you’ve even finished explaining the goal.
  • Naysayers who sincerely believe the whole plan is doomed. These guys are already dreading implementation and will do their best to resist.
  • Non-committal fence-sitters who are somewhere in the middle. These folks aren’t sure what to think and could go in either direction.

Talk to your team

Now it’s time to get the word out. Share the details of your plan. Explain the benefits of it and the reasons behind it. Clarify what things will change. Give time frames and set expectations to make things seem less intimidating. Talk about the end goal for when everything is said and done.

After you’ve laid it all out, you’ll be faced with a couple of choices for how to handle the reactions you’ve already anticipated:

  1. Spend your time trying to convert the naysayers and convince the fence-sitters
  2. Spend your time recruiting the change agents and involving them in the process

While attempting to win over the naysayers may seem like a logical plan, trying to convince someone who doesn’t want to change is a good idea can be like trying to explain molecular biology to the average toddler. They just don’t get it. They don’t want to, and they’re not going to try. And all the time you’ve spent trying to convince them that all of this “will be okay” is time that you’re not moving ahead with your new plans.

On the other hand, if you decide to focus your attention on the supporters, you’ll be helping them help you. They can play an active role in the implementation and help with buy-in. You’ll start moving forward immediately, and they’ll be setting an excellent example for the fence-sitters, who are more likely to be influenced by their peers anyway.

Handle the fallout

There will likely be some employee fallout from the change, regardless of how well you manage it. Some people will just refuse to adjust and would rather leave than tough out the process. That’s okay. Let them go. Having people on board who don’t support the company’s goals and vision will eventually bring everybody down.

Have some fun

Once you’ve made it happen, reward your early adaptors, your hardworking implementers, and your former fence-sitters for jumping on board. Review how far you’ve come, and then have a little fun. Why not? You’ve earned it.

 

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Agencies Issue FAQs Regarding Coverage of Over the Counter COVID-19 Diagnostic Tests

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Agencies Issue FAQs Regarding Coverage of Over the Counter COVID-19 Diagnostic Tests

On December 2, 2021, President Biden announced that federal agencies would soon issue guidance regarding the availability of coverage/reimbursement from group health plans and health insurance carriers for individuals who purchase over the counter, at-home COVID-19 diagnostic tests (“OTC COVID-19 tests”).  Accordingly, on January 10, 2022, the agencies released “FAQs About Affordable Care Act Implementation Part 51, Families First Coronavirus Response Act (FFCRA) and Coronavirus Aid, Relief, and Economic Security Act (CARES Act) Implementation” which, among other things, requires group health plans and health insurance carriers to reimburse participants, beneficiaries, or enrollees (“Individuals”) for no less than eight (8) OTC COVID-19 tests per calendar month beginning on January 15, 2022 (i.e., for tests purchased on or after January 15, 2022).

Background

During the COVID-19 public health emergency, the FFCRA requires group health plans (self-funded, fully-insured, grandfathered, and non-grandfathered plans, but not excepted benefits such as dental or vision) and health insurance issuers (“Plans and Carriers”) to cover testing or certain other items or services intended to diagnose COVID-19 without cost sharing (deductibles, copays, or coinsurance), prior authorization, or other medical management requirements.  It also permits the agencies to implement the FFCRA through sub-regulatory guidance, program instruction, or otherwise.  The CARES Act expanded the FFCRA to, among other things, include a broader range of reimbursable COVID-19 diagnostic items and services that must be covered without cost-sharing, prior authorization, or medical management during the public health emergency.

In 2020, the agencies implemented several FAQs intended to serve as statements of policy to implement the above-referenced requirements under the FFCRA and CARES Act.  Since that time, the FDA has authorized at-home OTC COVID-19 diagnostic tests that individuals can self-administer and self-read to diagnose COVID-19.  Accordingly, per the agencies, the FAQs issued on January 10, 2022 are intended to address both the FDAs approval of at-home OTC COVID-19 tests and the President’s request for additional guidance on group health plan coverage for these tests to address the ongoing COVID-19 public health emergency.

 

FAQ Guidance

Pursuant to the FAQs, Plans and Carriers must cover OTC COVID-19 tests that meet the criteria specified under the FFCRA even if they are not ordered by a health care professional, and must cover such tests without imposing cost-sharing, prior authorization, or medical management requirements.  This is so even if there is no order from a health professional for an Individual.

Coverage by the plan may be accomplished by directly reimbursing Individuals for their purchase upon submission of a claim by the Individual, or by reimbursing the entity who sold the OTC COVID-19 test directly, though the agencies strongly encourage plans to adopt the latter approach.

Note, however, there is no requirement for Plans or Carriers to provide coverage of OTC COVID-19 tests that are intended for employment testing, such as weekly testing an unvaccinated Individual is required to undergo pursuant to the OSHA Emergency Temporary Standard (“ETS”) or an employer’s own mandated testing program.

Plans and Carriers are required to reimburse OTC COVID-19 tests purchased from any retailer or pharmacy if the test meets the FFCRA statutory criteria, but if the test is administered without a health care provider’s assessment or order for testing and purchased from out-of-network pharmacies or retailers, then the Plan or Carrier may limit reimbursement to the lower of the actual price or $12 per test if the Plan or Carrier arranges for direct coverage (meaning the Individual who purchases the OTC COVID-19 test is not required to seek reimbursement post-purchase or make any up-front out-of-pocket expenditures) of OTC COVID-19 tests that meet the FFCRA criteria through both its pharmacy network and a direct-to-consumer shipping program.  Per the agencies, the direct-to-consumer shipping program may be provided through one or more in-network provider(s) or another entity designated by the Plan or Carrier.

In order to limit reimbursements for tests purchased from non-preferred providers, Plans and Carriers must ensure there are an adequate number of retail locations (in-person and online) with access to OTC COVID-19 tests and communicate necessary information about the direct coverage program, including when it is available and which retail pharmacies are available.

Per the agencies, whether access is adequate is determined based on all relevant facts and circumstances, including where Individuals are located and current utilization of the Plans’ or Carrier’s pharmacy network by Individuals.  Further, if there are significant delays for individuals to receive the OTC COVID-19 tests, such as through the shipping program, the Plan or Carrier must allow Individuals to purchase (and be reimbursed for) their OTC COVID-19 tests from any retailer.

The agencies also recognize the important need for adequate testing to be available to health care providers who are diagnosing and treating COVID-19, and that everyone has reasonable access to OTC COVID-19 tests.  Thus, to prevent stockpiling and provide adequate safeguards, the agencies permit Plans and Carriers to limit OTC COVID-19 tests purchased by Individuals without a health care provider’s involvement or assessment, the agency provides a safe harbor from agency enforcement action for Plans or Carriers that limit the number of OTC COVID-19 tests eligible for reimbursement per Individual to no less than eight (8) tests per 30-day period or per calendar month.  Plans and Carriers are not permitted to limit Individuals to a smaller number of tests over a short period of time (such as limiting Individuals to four (4) tests per 15-day period).  Plans can choose to be more generous by reimbursing a larger number of OTC COVID-19 tests (i.e., more than 8) per calendar month if they prefer.

Testing for Employment Purposes

Plans and Carriers are permitted to address suspected fraud and abuse, such as taking reasonable steps to ensure OTC COVID-19 tests are purchased for an Individual’s (or their covered family member’s) own personal use as long as the steps do not create significant access barriers.  This may include requiring attestations that the OTC COVID-19 test was purchased by the Individual for personal, non-employment related use, will not be reimbursed by another source, and will not be made available for resale as long as the attestation process is reasonable and does not result in undue delay of reimbursement.  Plans and Carriers may also require reasonable documentation as proof of purchase, such as the UPC code from the OTC COVID-19 test, when claims are submitted.

Finally, Plans and Carriers may assist Individuals by providing education and information resources to support Individuals seeking OTC COVID-19 testing as long as the materials clearly indicate the Plan or Carrier is required to cover all OTC COVID-19 tests that meet FFCRA criteria (subject to the safe harbors referenced previously).  The FAQs provide some examples of potential education and information resources Plans and Carriers may use.

What Does This Mean for Employers?

Employers are encouraged to work with their carriers or third-party administrators and stop-loss carriers to ensure these new requirements are implemented and to determine whether the plan will implement any of the permitted safe harbors so that this can be effectively communicated to employees and their family members.

The agencies clarified that they will not take enforcement action against Plans or Carriers for modifying health insurance coverage mid-year to meet these requirements or for failing to meet the 60-day advance notice requirements (for changes made to information required to be included in SBCs) if notice of these changes is provided as soon as reasonably practicable.

Finally, employers should clearly articulate to employees that the employer’s testing policy adopted pursuant to the OSHA ETS, if any, is not subject to this requirement and, employees are expected to pay out of pocket for weekly COVID-19 tests without seeking reimbursement from the employer’s group health plan if the employer does not pay for the applicable testing.  Further, pursuant to the OSHA ETS, while the employer may allow an OTC COVID-19 test to be used for purposes of applicable employment testing, the test may not be both self-administered and self-read unless observed by the employer or an authorized telehealth proctor.

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About the Author.  This alert was prepared for Employee Benefit Consultants, Inc. by Marathas Barrow Weatherhead Lent LLP, a national law firm with recognized experts on the Affordable Care Act.  Contact Stacy Barrow or Nicole Quinn-Gato at sbarrow@marbarlaw.com or nquinngato@marbarlaw.com.

 

The information provided in this alert is not, is not intended to be, and shall not be construed to be, either the provision of legal advice or an offer to provide legal services, nor does it necessarily reflect the opinions of the agency, our lawyers or our clients.  This is not legal advice.  No client-lawyer relationship between you and our lawyers is or may be created by your use of this information.  Rather, the content is intended as a general overview of the subject matter covered.  This agency and Marathas Barrow Weatherhead Lent LLP are not obligated to provide updates on the information presented herein.  Those reading this alert are encouraged to seek direct counsel on legal questions.

© 2022 Marathas Barrow Weatherhead Lent LLP.  All Rights Reserved.

Breaking Down Full-Coverage Health Insurance

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When it comes to attracting and retaining employees with various employee benefits, health insurance is at the top of their minds. A survey shows that “56% of U.S. adults with employer-sponsored health benefits said that whether or not they like their health coverage is a key factor in deciding to stay at their current job.” The same survey shows that “46% said health insurance was either the deciding factor or a positive influence in choosing their current job.”

With health insurance, the type of coverage is important. You may have heard the terms full-coverage health insurance or comprehensive coverage. Learn more about what this type of health insurance is, and why you should consider offering it to your employees.

What is full-coverage health insurance?  

Full-coverage health insurance, also known as major medical health insurance or comprehensive coverage, is a health insurance plan that provides overarching, broad coverage of a variety of healthcare services such as doctor visits, hospital visits, and emergency room visits.

In contrast to full coverage, limited-benefit plans (or supplemental policies) may cover only specific conditions (e.g., cancer) or specific types of services (e.g., hospitalization), or have a dollar cap on coverage. These plans are not considered comprehensive, nor are they considered minimum essential coverage, and are not regulated by the Affordable Care Act. However, they can be a good supplement to a full-coverage health insurance plan.

What should be included in a full-coverage health insurance plan?

At the minimum, a full-coverage health insurance policy, which includes all new individual/family and small-group major medical health insurance policies sold after January 1, 2014, must cover the ten essential health benefits outlined in the Affordable Care Act (ACA) with no annual or lifetime benefit caps:

  • Hospitalization
  • Ambulatory services (visits to doctors and other healthcare professionals and outpatient hospital care)
  • Emergency services
  • Maternity and newborn care
  • Mental health and substance abuse treatment
  • Prescription drugs
  • Lab tests
  • Chronic disease management, “well” services, and preventive services
  • Pediatric dental and vision care
  • Rehabilitative and “habilitative” services

What is considered a full-coverage health insurance plan?

  • Most group health insurance plans
  • ACA-compliant policies purchased in a state’s health insurance exchange/marketplace
  • ACA-compliant plans purchased off-exchange (purchased directly from an insurance company or through an agent or broker, outside of the ACA-created health insurance exchange)
  • Medicaid and Child’s Health Insurance Program (CHIP) plans (Medicaid has some exceptions. Some people qualify for limited-benefit Medicaid coverage; this is not considered comprehensive coverage.)
  • Medicare (either Original Medicare or Medicare Advantage, although Original Medicare is typically combined with a Medigap plan and Part D plan to provide comprehensive coverage)

Be aware that the term “comprehensive” regarding health insurance plans is like the term “natural” regarding groceries. It’s not an officially defined term and has no official marketing rules associated with its use.

A variety of full-coverage plans

Employers can offer different types of full-coverage plans to cover specific needs. Here are some examples, as given by the official government healthcare website:

  • Exclusive Provider Organization (EPO):  A managed care plan where services are covered only if you use doctors, specialists, or hospitals in the plan’s network.
  • Health Maintenance Organization (HMO): Usually limits coverage to care from doctors who work for or contract with the HMO, and it generally won’t cover out-of-network care except in an emergency. An HMO may require you to live or work in its service area to be eligible for coverage.
  • Point of Service (POS):  A health plan where you pay less if you use doctors, hospitals, and other health care providers that belong to the plan’s network. POS plans require you to get a referral from your primary care doctor to see a specialist.
  • Preferred Provider Organization (PPO):  A type of health plan where you pay less if you use providers in the plan’s network. You can use doctors, hospitals, and providers outside of the network without a referral for an additional cost.

Be well-informed and do your research

Buying health insurance means you should always do your research. It’s important to work with your advisor and legal counsel to help you understand the fine print and terminology (such as essential health benefits and minimum essential coverage) before offering plans to your employees. Full-coverage health insurance is what employees want from their employers, and implementing such a plan will lead to employee attraction, retention, and satisfaction.

 

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