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New Beginnings for Benchmarking Benefits in Iowa

David P. Lind BenchmarkSince 1999, my firm has surveyed Iowa employers to learn about the benefits they offer to their employees. The “Iowa Employer Benefits Study” has revealed many key facts that allow employers, regardless of size and industry, to determine annually how competitive their benefits are when attempting to attract and retain employees. After all, to be successful, employers MUST have the right employees when competing locally, nationally and globally. This is a fact of business life!

Prior to 2012, our surveys have randomly-selected Iowa employers once a year. Annual surveys are really a “snap-shot” in time, allowing us to sample a particular population for that time period and compare the results to previous years’ results.  Doing this has provided a wealth of data on employee benefit trends that provides meaningful information for employers, policy-makers, the media, etc. This work also allows us to compare different industries within Iowa to one another. All industries, by the way, are NOT created equal! There are inherent issues within each industry that impacts the type of benefits offered to employees…and the costs can be considerably different when comparing industries.

Beginning in 2012, we have updated our survey process to make it even more fresh, relevant, local and customized for the Iowa employer. Instead of surveying all industries at the same time each year, we are staggering the survey process to allow a greater likelihood of observing trends sooner, rather than later.

Here’s how it will work:

Every two months, beginning in January and February of 2012, we will survey just one major Iowa industry. For example, we just finished surveying the Manufacturing industry in Jan/Feb, and we are now “interviewing” the Retail sector for March and April. The other survey periods for 2012 include:

  • May/June – Finance and Insurance
  • July/August – Healthcare & Social Services
  • September/October – All Other Sectors not interviewed in the other five periods
  • November/December – All State & Local Governments

In 2013 and beyond, the process will be repeated as mentioned above. During any given survey period, new questions can be added once new trends and developments have been identified, including new questions about health reform issues, wellness initiatives, and employer attitudes on various subject matter, to name a few.

In addition to having on-going “fresh” data, we will seek a higher number of respondents for each industry than we have in the past, making our already credible survey even more robust! Our studies have consistently interviewed over 900 employers in each of the last several years…and we will now add to this number under the new survey process.

If your organization is randomly selected to participate in this new and improved study, I highly encourage you to participate (if you already have, we thank you!). By participating in this important research, you will receive an overall summary of the survey results that will help your organization compare itself to other Iowa employers. If your organization has not been randomly selected to be surveyed, don’t despair, you still have access to this information. Should you wish to have an easily customized benchmark analysis with other Iowa employers both within and outside your industry, you can perform this anytime here. New and improved benchmark programs will also be developed within the near future! Many changes are being made to this landmark study, but its’ integrity remains unchanged. You have my word on that!

Here’s to a new beginning – for all of us!  

 

Health Reform…Are You a Skeptic?

David P. Lind BenchmarkAs an employer, what do YOU think of health reform? Will it successfully attack rising health insurance rates that you continue to pay year after year? Will the Iowa health insurance exchange in 2014 make any difference for small employers? What about the Supreme Court’s involvement?

Most of these questions (and many others) were asked of Iowa employers in our 2011 Iowa Employer Benefits Study©. So how did they respond? They’re a skeptical bunch.

  • 54 percent either “somewhat agree” or “strongly agree” that the health law should be repealed completely
  • 68 percent at least somewhat agree that the law should be repealed in some parts only, while keeping other parts of the law intact
  • 65 percent believe employer health plan costs with increase because of health care reform
  • Only 17 percent agree that a state-based insurance exchange will keep health insurance rates lower than without health reform (41 percent are unsure)
  • 54 percent believe the provision of the law to require coverage (or pay a fine) should be repealed (also known as the individual mandate)
  • 51 percent want a repeal of the provision that requires employers with over 50 employees to either continue offering coverage or pay an annual penalty of $2,000 per employee.

Iowa employers do, however, support the provision that prohibits insurance companies from denying coverage to individuals due to poor health. I think this is one part of the law that most everyone agrees we should keep…but to do so, insurance companies need the assurance they are covering healthy people too.

All of this leads to the Supreme Court hearing arguments in late March about challenges to this law, specifically the constitutionality of the law’s individual mandate that requires most Americans to obtain health insurance and of provisions requiring states to expand eligibility for their Medicaid programs. Based from the arguments, it is likely the Supreme Court will issue a written opinion before the close of the current term in June, 2012.

STAY TUNED…regardless of the outcome, we will continue to see rising health care costs (and insurance premiums) for the unforeseeable future. Iowa employers have reasons to remain skeptical and apprehensive for the time being.

 

Employee Trust…Do You Have It?

David P. Lind BenchmarkTrust can be an over-used word in today’s world, but sadly is difficult to find…as it must be earned.  Trust, it is said, is the new currency in our shrinking world (thanks in large part to social media).  Trust sounds good in theory, but it is the elusive butterfly for many of us.  Why?

For starters, we live in a world that changes BEFORE we can ever get comfortable with the latest status quo.  In many ways, we really don’t have a lot of time to develop a secure level of trust, and because of this, we experience broken promises, vanishing hope, and unfortunately, unfulfilled dreams.  Employers, however, have a unique opportunity to offer a more secure environment that can foster a deep sense of trust to their employees.  This can be such a powerful asset with immeasurable consequences for employers.

According to Great Place To Work, the definition of a great workplace includes three interconnected relationships.  Through such relationships, employees in a great workplace will:

 1) trust the people they work for,      

2) have pride in what they do, and      

3) enjoy the people they work with

Great Place To Work® developed the Trust Index©, which has found that organizations with high trust score well in three categories:  credibility, respect, and fairness.  This is stuff that you don’t have to purchase from a vendor, such as an insurance company, but rather develop practices, policies and behaviors that foster these key categories internally for long term success.

So why is this important to you?  It’s very simple.  By building a reputation based on trust, you not only give the market what it so desperately wants and needs but you also establish a unique and sustainable value proposition for your organization (employees).  The organization that owns the trust niche will own its marketplace destiny.  This is a win-win proposition for both the organization and its’ employees.

Be that elusive butterfly…create a culture of TRUST in your workplace!