Workforce - March/April 2017

workforce.com

March/April 2017

ARIANNA HUFFINGTON Seeking to thrive in a wellness world

The Health of

Wellness

WELLNESS’ WORTH? Evaluate the value of employee health

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From Our Editors

READER FEEDBACK An Age-Old Problem

NLRB and ACA. EEOC, DOL, OSHA and FMLA. Simply trying to keep straight the alphabet soup of agencies, regulations and laws that affect HR is enough to make you LOL. I make light of it, but to argue, as some have, that politics has no place at work is ridiculous.

From labor relations to health care to workplace safety, there are significant points where D.C. intersects with HR. That’s not even considering the active stance some employers have taken in the early days of the Trump administration on issues like immigration. But really, that’s nothing new. In the battle for influence, legislators are outnumbered by the ranks of lobbyists, many funded with corporate cash and the mission to influence policy and legislation.

Here at Workforce, our mission isn’t to advocate one policy or party over another.

Rather, it’s to deliver news and analysis about the world of work.That sometimes means an opinion or two at the intersection of politics and the workplace as well.

Helping HR prepare for what’s next means creating a venue to pose questions, state positions and argue about the future of work. For better or worse, politics — not just office politics — is part of that future.

— Mike Prokopeak, Editorial in Chief 4

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I would like to comment on your article,“Is ageism the last acceptable ‘ism’ in the workplace?” in the Workforce November/ December 2016 Issue (“Boomer Bust: Ageism in the Workplace”).

I have been searching for a position for over 10 years. I am at the age of receiving Social Security. I blew my retirement from a Fortune 250 corporation by making an early withdrawal and the balance of my retirement became my living budget. I dyed my hair, am up to date with the so-called “millennial-correct” language (from my grandson).

I stay up to date on all changes to human resources. I know I am good at what I know because at workshops and seminars I find myself answering questions no else understands. I do not claim to have total knowledge of the HR field but when it comes to labor, employee relations or diversity I am good!

The problem that I found is too many employers ask the year you graduated from high school. I list that I have a master’s degree and from the appropriate university but they still want to know specific high school information.

Ageism is far from being dead. It is alive and well. Employers are losing valuable talents because of this phobia. I hope you include this in the anticipation that some HR folks may change their thoughts about us “senior citizens.”

Dwayne E. Clark, Sr. MS, PHR, CTM, CA.CM Jacksonville, Florida

James L. Butler also commented online on the ageism story: If only 1 percent of the current victims of age discrimination in the workplace marched on Washington, D.C., it would make the famous MLK march look like a high school pep rally. So why don’t they march? Join our rally at https://www. facebook.com/fortyandout/ Workforce.com/boomerbust

Jeanne-Elise Heydecker commented on Kris Dunn’s Work in Progress column titled “Seeing Through Glassdoor’s New Tool”: Another thing you might want to mention is that the service can only be used in the US from what I can see. If you have employees in different countries, that sets HR up to try to defend different salaries based on country.

I also like that Glassdoor enables companies

to respond to employee reviews, unlike Indeed or Jobbuzz. Disgruntled employees can post anything and sometimes the comments are completely untrue.

We’ve tried flagging these but sometimes Glassdoor has kept them live. They don’t really tell you anywhere what is actually allowed or not allowed when you flag a review. Some are taken down and not others. We spend a lot of time writing responses and educating those employees who post content that was either misunderstood by them or they were not told the business decision behind those changes.

Overall, still prefer Glassdoor to other review sites.

Workforce.com/GlassdoorTool

Reader Soc Colovas writes in response to Rick Bell’s Last Word column titled, “Defining Trump: Stop It and You’re Fired”: I typically enjoy Workforce magazine for its HR content, but the editorial written by Rick Bell called “Defining Trump: Stop it and You’re Fired” was a political essay disguised as an HR article. Mr. Bell’s comments that Trump withheld subcontractor’s pay, skirted tax laws, bullied and intimidated, etc. are purely partisan comments, which I wish the writer would have kept to himself or reserved for another venue. Perhaps Mr.Trump withheld subcontractor’s pay because they didn’t fulfill their end of the bargain.This is the first I’ve ever heard that Trump skirted the tax laws.

Apparently, he paid virtually no income tax, but nobody (until now) asserted that he did so illegally. Using the existing tax laws to your benefit is dramatically different than “skirting” the laws. I’m not sure what the specific, confirmed examples of bully and intimidating are that Mr. Bell refers to. Mr.Trump has employed thousands of employees over the years and run numerous beauty pageants. He’s been in the public spotlight for 40 years, and it wasn’t until he ran for president that these negative accusations surfaced. A reasonable person would question their authenticity rather than assume they must be true.

Keep up the good job on Workforce, but please, keep your political opinions to yourself.

Workforce.com/DefiningTrump We welcome your comments on these stories and others on our website.

Be sure to follow us and give us a shout on Twitter at @Workforcenews, too.

Hope to hear from you! march/april

2017

# hellowork That’s the great thing about work — life.

The best part about work and life is that they both keep getting better. ADP provides your company benefi ts administration with a human touch so that your employees can make the smartest decisions for any new chapters in life.

Visit adp.com/benefits to see how we can provide a more human resource for your business.

ADP and the ADP logo are registered trademarks of ADP, LLC. ADP A more human resource. is a service mark of ADP, LLC. Copyright © 2017 ADP, LLC.

Payroll | Benefits Administration | Love of Work

A PUBLICATION OF March/April 2017 | Volume 96, Issue 2 PRESIDENT John R. Taggart jrtag@workforce.com

EDITORIAL INTERNS Mia Mancini mmancini@workforce.com

VICE PRESIDENT, CFO, COO Camaron Santos Kevin A. Simpson csantos@workforce.com ksimpson@workforce.com VICE PRESIDENT, VICE PRESIDENT, RESEARCH AND GROUP PUBLISHER ADVISORY SERVICES Clifford Capone Sarah Kimmel ccapone@workforce.com skimmel@workforce.com VICE PRESIDENT, RESEARCH MANAGER EDITOR IN CHIEF Tim Harnett Mike Prokopeak tharnett@workforce.com mikep@workforce.com EDITORIAL DIRECTOR Rick Bell rbell@workforce.com

DATA SCIENTIST Grey Litaker clitaker@workforce.com

GROUP EDITOR/ ASSOCIATE EDITORIAL DIRECTOR Kellye Whitney kwhitney@workforce.com

RESEARCH CONTENT SPECIALIST Kristen Britt kbirtt@workforce.com

CONTRIBUTING EDITOR Frank Kalman fkalman@workforce.com ASSOCIATE EDITOR Andie Burjek aburjek@workforce.com ASSOCIATE EDITOR Lauren Dixon ldixon@workforce.com ASSOCIATE EDITOR Bravetta Hassell bhassell@workforce.com

RESEARCH GRAPHIC DESIGNER Theresa Stoodley tstoodley@workforce.com MEDIA & PRODUCTION MANAGER Ashley Flora aflora@workforce.com PRODUCTION COORDINATOR Nina Howard nhoward@workforce.com

EVENTS MARKETING MANAGER Anthony Zepeda azepeda@workforce.com WEBCAST MANAGER Alec O’Dell aodell@workforce.com EVENTS GRAPHIC DESIGNER Tonya Harris lharris@workforce.com BUSINESS MANAGER Vince Czarnowski vince@workforce.com REGIONAL SALES MANAGERS Derek Graham dgraham@workforce.com Daniella Weinberg dweinberg@workforce.com Nick Safir nsafir@workforce.com

DIGITAL COORDINATOR Mannat Mahtani mmahtani@workforce.com LIST MANAGER Mike Rovello hcmlistrentals@infogroup.com BUSINESS ADMINISTRATIVE MANAGER Melanie Lee mlee@workforce.com CONTRIBUTING WRITERS Jennifer Benz Sarah E. Bell Brandi Britton Marty Denis Kris Dunn Sarah Fister Gale Jon Hyman Mark T. Kobata Patty Kujawa Nidhi Madavan Rita Pyrillis

DIRECTOR, BUSINESS DEVELOPMENT Kevin Fields kfields@workforce.com MANAGER, BUSINESS DEVELOPMENT Brian Lorenz blorenz@workforce.com

AUDIENCE VICE PRESIDENT, EVENTS DEVELOPMENT DIRECTOR COPY EDITOR Trey Smith Cindy Cardinal Christopher Magnus tsmith@workforce.com ccardinal@workforce.com cmagnus@workforce.com EVENT CONTENT DIGITAL MANAGER EDITORIAL ART DIRECTOR MANAGER Lauren Lynch Anna Jo Beck Ashley Collins abeck@workforce.com acollins@workforce.com llynch@workforce.com

WORKFORCE EDITORIAL ADVISORY BOARD Arie Ball, Vice President, Sourcing and Talent Acquisition, Sodexo Angela Bailey, Associate Director and Chief Human Capital Officer, U.S. Office of Personnel Management Kris Dunn, Chief Human Resources Officer, Kinetix, and Founder, Fistful of Talent and HR Capitalist Curtis Gray, Senior Vice President, Human Resources and Administration, BAE Systems Jil Greene, Vice President, Human Resources and Community Relations, Harrah’s New Orleans Ted Hoff, Human Resources Vice President, Global Sales and Sales Incentives, IBM Tracy Kofski, Vice President, Compensation and Benefits, General Mills Jon Hyman, Partner, Meyers, Roman, Friedberg & Lewis Jim McDermid, Vice President, Human Resources, Cardiac and Vascular Group, Medtronic Randall Moon, Vice President, International HR, Benefits and HRIS, Lowe’s Cos. Dan Satterthwaite, Head of Human Resources, DreamWorks Dave Ulrich, Professor, Ross School of Business, University of Michigan Workforce (ISSN 2331-2793) is published bi-monthly by MediaTec Publishing Inc., 111 E. Wacker Dr., Suite 1200, Chicago IL 60601. Periodicals postage paid at Chicago, IL and additional mailing offices. POSTMASTER: Send address changes to Workforce, P.O. Box 8712 Lowell, MA 01853. Subscriptions are free to qualified professionals within the US and Canada.

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Printed by: Quad/Graphics, Sussex, WI

FREE LIVE

ONLINE EVENTS

CONTENTS 26

ON THE COVER LIGHTNESS OF WELL-BEING

Arianna Huffington, left, and Jennifer Morgan, president SAP North America, make remarks at the Thrive Global pop-up launch event in New York City.

PHOTO COURTESY OF THRIVE GLOBAL

COVER PHOTO BY MAX LAKNER/BFA.COM

The Health of

Wellness

38 SECTOR REPORT 44 CORPORATE WELLNESS PROVIDERS

Wellness providers have been gaining popularity as a way to attract top talent and lower health care costs.

46 HEALTH INSURERS

Cost continues to be the driving issue for employer-sponsored health insurance programs.

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FEATURES 30 HEALTHY SPEND

Companies continue investing in workplace wellness. But can money buy employee health?

34 VALUE PACT

Questions arise when doing a check-up on the many facets of value-based health care.

38 PHONE IT IN

Managers can help keep their teams healthy. Start by letting people know it’s OK to call in sick.

PROFILE 26 LOOKING TO THRIVE

IN A CROWDED MARKET

Arianna Huffington swaps her press credential for a corporate wellness startup.

CORRECTION In the Sector Report on Recruiting Software Providers in the January/February edition of Workforce,Talent Function was mistakenly identified as a recruiting software vendor.Talent Function is a recruiting consulting firm and does not offer software. march/april

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30

ON THE WEB SPEAK UP!

34

The Workforce online community provides you with virtual meeting places to chat about issues and trends affecting you and your workplace.

LIKE US: facebook.com/workforce.magazine

FOLLOW US: twitter.com/workforcenews

JOIN THE GROUP: workforce.com/LinkedIn

WATCH US:

TRENDING

workforce.com/youtube

FOR YOUR BENEFIT COLUMNS 4

YOUR FORCE

There are significant points where D.C. intersects with HR.

14 WORK IN PROGRESS

Hey boomers:‘Stay golden, Ponyboy.’

16 CARROTS AND STICKS

The days of wielding perks in employee wellness may be over.

17 SAVVY SAVERS

Millennials are building their retirement funds by doing nothing.

20 BENEFITS BEAT

Expanding the definition of wellness.

24 THE PRACTICAL EMPLOYER The Supreme Court and arbitration.

50 THE LAST WORD

The legacy of SHRM’s Hank Jackson.

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17 CURBING DRUG COSTS

The EpiPen debacle has cast new light on the alarming costs of specialty drugs.

18 STRESS CASES

Employers voice concern but employees say they’re targeting the wrong causes.

10 GOING, GOING …

SHRM’s CEO is retiring in December.

11 FROM THE WEB, PEOPLE MOVES AND BY THE NUMBERS

Obama’s legacy;Thornton Tomasetti’s CHRO; managers.

12 Q&A

Facebook’s Dan Zigmond on health.

LEGAL 22 NEW MOMS’ RIGHTS

What are employer obligations for breast-feeding mothers?

23 LEGAL BRIEFINGS

Emotional distress; customer abuse.

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TRENDING

SHRM Announces the Retirement of CEO Henry Jackson

By Andie Burjek

H

enry G. “Hank” Jackson, president Sharlyn Lauby, president of consulting and CEO at the Society for Human firm ITM Group Inc. and previously a Resource Management, will retire Dec. member of SHRM’s Membership Ad31. Executive search firm Spencer Stuart visory Council, said Jackson’s backhas begun the recruitment process for the ground in finance helped the associanext CEO, and SHRM’s board of direc- tion. Before becoming CEO and tors will choose Jackson’s successor from president, he served as the chief global the candidate list created by the search finance and business affairs officer. firm, according to a statement from “As a human resources professional, SHRM. we hear a lot about the need to underThe HR association has grown to stand the business and the numbers,” 289,000 members under Jackson’s ten- she said in an email interview. “Hank ure, according to a was able to show the value SHRM press reby bringing his finance exlease. SHRM also pertise to his role as CEO, saw increased innot simply saying it was imterest in HR from portant. SHRM benefited millennials and and as a result, so did HR.” Generation Z, as Scott Washburn, vice presstudent memberident of human resources at ship rose to 23,000.

Tree Top Inc. and a SHRM Jackson, 65, has board member in 2014-15, been leading said Jackson had a lot to do SHRM since 2010, with the growth of the assoSHRM CEO Henry “Hank” Jackson and his work is not ciation, both from a memover, said Coretha Rushing, chair of the bership perspective and a financial staSHRM board of directors, and corpo- bility perspective. He also helped rate vice president and CHRO at Equi- expand reach both globally and domesfax. “During his final year, he will con- tically. Jackson also oversaw the impletinue to lead SHRM and ensure that mentation of SHRM’s controversial HR the goals set out in its strategic plan are credentialing program. met. Come December, we will wish “He led some pretty hard decisions, him well in his retirement. He will be some high-level strategic decisions greatly missed,” she said in a statement. around implementation of the new Kris Dunn, chief human resources of- competency programs and the new cerficer for Kinetix and a Workforce con- tifications that were met with different tributing editor, said SHRM played it types of responses from different people, safe when tapping Jackson as president but I think they absolutely were the and CEO in 2011. right decisions,” said Washburn.

“SHRM thought Hank Jackson was a Moving forward, he added, “I think safe, responsible choice,” Dunn said. the board of directors will be looking for “Turns out they were probably right, but a strong leader who can continue on the the fact he wasn’t a former HR leader path that Hank has helped forge. At the left many in the membership a bit jaded same time, they’ll want somebody who and questioning whether SHRM be- has an idea of what that next level of perlieves top HR leaders are incapable of formance looks like for the organization running an organization with a mere and where the HR profession is going $100 million in annual revenue. Expect and help lead the association there.” them to course correct this time around, Carol McDaniel, president of the HR locating a champion/leader within the Florida State Council, a state affiliate for profession rather than a professional SHRM, also admired Jackson’s work manager with a CPA.” with the SHRM certification model.

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“That took courage and a strong sense of what was to be the future of our industry,” she said. “While the beginning may have been somewhat rocky, the communication, talking points and his ability to be a steadfast supporter of the new competencies will a big part of his legacy.”

Sheryl Simmons, chief human resources officer of Chicago-based Maestro Health, said SHRM has prospered under Jackson’s leadership and is grateful for his contributions to the organization, including the certification program.

“Despite a rocky launch, the introduction of a new certification provider has helped to elevate the HR industry overall,” Simmons said. “Looking ahead to the future of SHRM, the organization needs an individual with strong leadership skills, C-suite strategic talent and deep knowledge of the HR industry.

While this doesn’t necessarily need to be a career HR professional, SHRM needs a leader who understands the challenging and evolving world of HR.” Hilary Constable, principal consultant at Constable HR, saw Jackson’s hiring as permanent CEO six years ago as a logical one given his background as a CPA. “I think that there is potential for the field of HR to learn from the developments in our peer organization of finance over the last few decades,” said Constable, who is certified as an SPHR from HRCI and SHRM-SCP from SHRM. “SHRM added their own HR certification system, in addition to the existing HRCI system, to address business as a whole rather than only HR topics, but they missed the mark.”

Constable is eager to see where SHRM’s as-yet unnamed replacement for Jackson takes the profession.

“I’m excited to see where HR will go from here and how we will build on the progress we’ve already made, from being thought of as the ‘girl in HR’ or the ‘Benefits Lady’ to having the credibility to lead business initiatives that add real value to the bottom line and improve our workplaces for the people in them.” march/april

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TRENDING

FROM THE WEB THE OBAMA LABOR LEGACY The past eight years saw a surge in worker-friendly regulations as the nation shook off the deepest recession since the Great Depression. How will Barack Obama be remembered? The Fair Pay Act, a tougher National Labor Relations Board and of course the Affordable Care Act are three of those hallmarks as the pendulum swings to a Republican president and Congress.

Workforce.com/ ObamaLegacy TRACKING THE AFFORDABLE CARE ACT As Congress tackles health care in America, the future of the Affordable Care Act could be radically different this time next year. Or not.

Workforce is keeping tabs on important developments through continuous updates in the new administration’s ongoing attempt to repeal and reshape the ACA. Workforce.com/ ACAtracking POWER DOWN YOUR EMAIL AND TAKE A NAP Workforce editors Rick Bell and Frank Kalman spend this installment of the video series “5 Minutes of Management” discussing France’s new workplace policy to shut down email one the work day is done.They also chat about new research pointing out the value of employees getting a good night’s sleep.

Workforce.com/ TakeANap march/april

2017

PEOPLE

moves

STEPHANIE KELLY New York-based international engineering firm Thornton Tomasetti named Stephanie Kelly to the newly created position of chief human resources officer.

Kelly will work closely with the executive committee and oversee the HR and organizational development departments, integrating those operations with employee wellness and social responsibility.

DARD HUNTER Employee benefits and insurance brokerage CLS Partners named Dard Hunter as president of employee benefits.

Hunter will develop CLS Partners’ consulting resources and capabilities and facilitate the company’s organic growth and geographic expansion.

Hunter previously was senior partner at global human resources firm Mercer.

PETER ROSADA Corporate relocation company Aires named Peter Rosada as director, business development.

Rosada will be responsible for strategic sales initiatives and global account management.

He has 39 years of comprehensive relocation management experience, serving in sales, general management and account management roles.

To be considered for People Moves, email a brief announcement and a high-resolution color photo to editors@workforce.com. Include People Moves in the subject line.

By the Numbers compiled by Rick Bell

Manager, Boss, Supervisor Whatever the title, employees don't leave jobs; they leave those in charge

Financing a Firing

35

%

Michelle McQuaid/Parade magazine, 2012

of U.S. workers would forgo a raise to see their boss fired.

Who’s in Charge Here?

44%

employees who say they’ve been emotionally or physically abused by a supervisor.

Source: OfficeVibe, 2014

3 of 4 employees say their boss is the worst/most stressful part of the job.

Driven to Distraction Time a manager spends on interruptions each day.

3 hours

Source: Shirley Fine Lee, Management/HR Statistics

They’re No. 1 Managers are the No. 1 way people feel supported by their organization.

Source: Limeade 2016 Well-Being and Engagement Report

Engagement Ups and Downs Managers’ influence in variance of employee engagement scores.

70%

Source: Gallup

Must-Read for Managers Top management books of all time:

Friends and Influence People” 1 “How to Win - Dale Carnegie (1936) Tasks, Responsibilities, Practices” 2 “Management: - Peter Drucker (1985) Finder 2.0” 3 “Strength- Tom Rath (2007) of Excellence: Lessons From America’s Best-Run Companies” 4 “In Search- Thomas Peters and Robert H. Waterman (1982) Successful Habits of Visionary Companies” 5 “Built to-Last: James C. Collins and Jerry I. Porras (1994) Source: Top Management Degrees, 2016

workforce.com | w Workƒorce orkforce.com 10| Workƒorce

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TRENDING

BUDDHA’S HEALTHY ATTITUDE

By Rick Bell

Dan Zigmond, Facebook director of analytics Facebook director of analytics and ordained Buddhist priest Dan Zigmond and Stanford University executive/power mom Tara Cottrell believe that the workplace is rife with opportunities for indulgences, whether it’s the staff potluck, an office cookout or the monthly happy hour. In their debut book, “Buddha’s Diet: The Ancient Art of Losing Weight Without Losing Your Mind,” they explain how they have made significant lifestyle changes affecting not only their weight and health but their entire work-life balance. Editorial Director Rick Bell caught up with Zigmond via email. “Buddha advocated mindfulness rather than intoxication to still our minds,” Zigmond said. “He wanted us to wake up, not pass out.”

Workforce: What first got you interested in health and wellness?

Dan Zigmond: I’ve always had a passing interest in healthy eating, but what really got me fascinated in diet and health was the year I spent working at a sustainable food company. Suddenly I was surrounded by food scientists and plant biologists, and it seemed everyone was on some sort of interesting diet, and almost everyone was in great shape. They were always sharing research papers on the latest findings and I found I just wanted to learn more.

WF: Is health and wellness the responsibility of the individual or the organization?

Zigmond: In the end, every individual has to make choices about his or her health.

But organizations can make it easier to make good choices, or they can make it much harder. For example, in “Buddha’s Diet” we suggest people eat their daily meals in a nine-hour window. This inevitably means eating some meals at work, and organizations can facilitate this by giving employees access to healthy food at sensible times. Just keeping the local cafeteria open for breakfast a bit later can make a difference. And if an activity is planned for after work, maybe it doesn’t have to revolve around food and drinking, and not every celebration in the office needs to have cupcakes or doughnuts.

WF: Can orgs truly make lifelong impacts on individual employees’ health?

Zigmond: Once good habits kick in, they can be as hard to break as bad habits. So anything that helps people establish a healthy rhythm around eating, exercising and even sleeping can have a lasting effect.

WF: What’s the one thing you would urge employers to remember when it comes to building a healthy, happy workforce?

Zigmond: I’d love for companies to encourage every single employee to take a real lunch break. Ask managers to model this for their teams — getting away from their desks and eating at a real table somewhere, perhaps having an actual conversation not even about work. Not only do we tend to eat better when we give it some focus but having a few minutes to decompress in the middle of the day can work wonders on stress.

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Gender Parity Gets a Paradigm Shift at Work

By Andie Burjek

J

ewelle Bickford was frustrated. Despite corporate efforts toward parity and promises to tackle gender inequality in leadership, women as a group weren’t making progress.

Bickford, partner at Evercore Wealth Management, is one of the founders and co-chairs of the Paradigm for Parity movement, which launched late in 2016 as a vehicle to accelerate the pace of gender equity in senior executive roles. The ultimate goal is gender parity in leadership by 2030.

Bickford, along with Sandra Beach Lin, former president and CEO of Calisolar, and Ellen Kullman, former CEO of DuPont, created the movement.

“It was our view that if a solution were to be found, women would need to do it for themselves, and for the rest of the women out there,” said Bickford. This prompted the organization of the Paradigm for Parity movement, which so far has partnered with 27 companies, all of which have publicly promised to take on gender parity as an organizational goal and to use Paradigm for Parity’s guidelines to do so.

Bickford and a group of highly regarded female CEOs and business executives, many of whom are CHROs, put together the actionable-items plan.

The group created a measurement for success that could realistically be implemented within a company.

Getting other companies interested in the plan wasn’t difficult, noted Bickford. “There are a lot of men and women out there who are as frustrated as we are,” she said.

For companies interested in creating gender equality in their workplace, whether they formally partner with Paradigm for Parity or not, Bickford said, “Just get started. You’ll see it will be very positive.” march/april

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TRENDING

Wo r k i n P r o g r e s s

HEY BOOMERS: ‘STAY GOLD, PONYBOY’

By Kris Dunn

I

like to tell myself that I’m still a young man, and in many ways, I still am. I’m active, mentally sharp (just ask me) and some would say at the apex of my career.

But at night, on the highway of life, I see the mileage sign for a destination that’s creeping closer and closer.That destination? Let’s call it “Old Towne.”

It’s where older workers (we’ll loosely define that as those over 50) go to do the following — live in fear of being laid off from their companies, spend their modest severance when they are separated and commiserate about how rough the job market is on older workers.

Misery loves company. That’s why Old Towne is booming.

Older workers in America are underutilized and underappreciated. They’re among our most talented assets, but face multiple challenges, some of which are unfair and some of which are self-inflicted.

Let’s cover the self-inflicted wounds first.As the knowledge, talent and age of a worker rises, it’s often accompanied by a drop in perceived energy, change agility and professional passion.These perceptions, real or imagined, are recorded while total compensation for the same worker rises.

Those self-inflicted wounds provide great cover for companies to move to a younger workforce. If the asset becomes more expensive but perceived productivity is flatlining, the obvious choice to many is to go younger — and cheaper.

Age discrimination? Yeah, that’s illegal. But you won’t win chasing that as an older worker. The better plan is to look different than your peers related to energy, change agility and professional passion.

There’s a great scene in the movie “The Outsiders” where Johnny Cade (Ralph Macchio) utters the line “Stay gold, Ponyboy” to C. Thomas Howell (aka Ponyboy). It’s reference to the poem “Nothing Gold Can Stay” by Robert Frost and a hat tip to the thought that all good things must come to an end.

Johnny Cade recites the line because he knows that Ponyboy is better than his companions and wants him to hold onto the golden qualities that set him apart from his peers.

If you’re an older worker, I want you to stay gold. Here’s my cheat sheet for how you can separate yourself from your AARP peers: Do what you can to build a professional profile separate from your company. The biggest lie the devil ever told us is that we should pour all our energy into the company we work for.

You must treat your company fairly, but allocating 100 percent of your professional energy to your employer is a sucker’s play. I know it feels unnatural, but you have to find other avenues where you can become familiar with your work. Consider it a precursor to networking.

Be interested and passionate about what you do for a living. Closely related to finding outlets outside of your company is your passion for your profession.

You get judged by the world as an older worker by what you’ve done to stay current. More impactful than additional degrees or certifications is a portfolio of work that shows you’re chasing new ideas or emerging trends.

The ability to chase new things also impacts how agile you’re viewed related to change.

Don’t be locked in that you can never go backward in pay. I know, you’ve got bills.

Moving backward in pay never feels good, but it may be necessary.

Get as much money as you can when the time comes to change companies, but understand that earning 80 percent of your current salary at the right company with the right future is a superior position to being laid off and on a twoyear “sabbatical” with no end in sight.

Stay one step ahead, and get out of town before the posse arrives. Do all signs point to the fact that your company is going to go through another round of layoffs?

Do you find yourself digging a foxhole and hoping for the best without doing any of the things I’ve listed to this point?

The best time to get a job (at any age) is when you have a job. Be brave enough to understand your circumstances and jump if necessary if the situation is right. Risky? Yes, but you’re likely underestimating the risk of staying.

Look like the 2.0 version of yourself. You haven’t updated your look because you haven’t been threatened.

Being proactive with your career prospects means you probably need to ditch double-pleated pants if you’re a guy.

I’m no expert, so look into how to do this for your gender and drop some limited funds into a wardrobe refresh.

Life is tough in Old Towne. I’m going to visit soon, but before I get there I wanted to offer encouragement to you.

I think you’re different than most of the people in Old Towne, but you’ve got to take action to prove it.

Stay gold, Ponyboy.

HERE’S MY CHEAT SHEET FOR HOW YOU CAN SEPARATE YOURSELF FROM YOUR AARP PEERS.

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Kris Dunn, the chief human resources officer at Kinetix, is a Workforce contributing editor. To comment, email editors@workforce.com.

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Watch editors Rick Bell and Frank Kalman online for stimulating takes on talent in a weekly video series.

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2017

Available now at www.workforce.com/video w o r k f o r c e . c o m | WorkĆ’orce 15

FOR YOUR BENEFIT

Appetites for Carrots and Sticks Shift with Wellness Perks Employers may use incentives such as rewards or punishments to motivate employees to participate in wellness programs, but how much influence is too much?

By Andie Burjek

W

orkplace wellness initiatives continue making headway into employee perks with one important goal: influencing behavior change and improving employee health.

A step competition may aim to motivate employees to adopt a more active lifestyle while a weight-loss program could push employees to be more conscientious of their diet.

But when it comes to influencing long-term behavior, the popular carrot-and-stick model, which relies on extrinsic motivation like rewards and punishment to influence people, isn’t necessarily the most effective.

“We’re not opposed to carrots or sticks when they are used appropriately,” said Howard Kraft, Mercer’s total health

“I WOULD NEVER RECOMMEND SOMEBODY BE PUNISHED FOR NOT PARTICIPATING.” —JOE ELLIS, CBIZ INC. management specialty practice leader in the U.S. But they’ll ultimately only work on a short-term basis, he said, adding behavior change is more difficult and requires that employees are intrinsically motivated.

There are many examples of companies misusing the reward-punishment approach. In 2013, Penn State University’s wellness program included a monthly $100 noncompliance fee for employees who chose not to participate, but soon dropped the requirement after employee protests over privacy concerns prompted a public outcry. Such plans are doomed to fail, according to Joe Ellis, senior vice president of CBIZ Inc., an employee services company.

“There are a lot of poorly designed plans,” he said. As with Penn State, if employees complain about being punished for not participating, it’s a different story. A smoker may decide not to join a smoking cessation program and therefore not receive a reward in the form of a premium discount. This person, who is now paying a higher premium than others for their lifestyle choice, may feel like they are being punished.

“The employer becomes the conduit through which those who do wish to change something in their life can access 16

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tools to do so,” said Ellis, but not everyone will choose to use those tools and participate.

“I would never recommend somebody be punished for not participating,” Ellis added. “There may be rewards for people who engage in healthy behaviors and no rewards for those who don’t. If you construe that as punishment, that’s your perception and I can’t help that.”

Incentives are governed by several regulations including the Health Insurance Portability and Accountability Act; the Affordable Care Act; the Americans with Disabilities Act; and the Genetic Information Nondiscrimination Act. Companies don’t have free reign on how they use them in a wellness program.

And their use appears to have limited value. Forty percent of employees don’t receive incentives because they choose not to participate and only 42 percent get the full incentive available to them, according to the 2016 report by Willis Towers Watson, “New EEOC Rules Encourage Rethinking Incentives and Wellness Programs.” Employees are becoming less comfortable with incentives based on health outcomes and incentives designed as penalties.

In the long-term, what will work in terms of behavior change is some blend of self-motivation, social connectivity and changing the status quo, Kraft said.

“A company can influence the work environment and culture to be more supportive of health and well-being; that’s where you’ll see a bigger difference,” he said. The first step for all employers is to be honest about the level of trust employees have in the organization regarding the health and well-being of its workforce.

“When an employer has the trust of the workforce and Howard Kraft demonstrates a strong commitment to health and well-being, motivating people to do certain things and have certain behaviors becomes easier,” said Kraft. Using rewards and punishments smartly can have an impact.

“It’s the companies that simply think a stick or carrot by itself is the silver bullet; that’s where they get in trouble,” said Kraft.

Ellis agreed about the importance of a culture of health, and also noted that C-suite support is key. “The CEO and the other executives need to be onboard and also participate in creating a culture of health at a company.” march/april

2017

FOR YOUR BENEFIT

Millennials’ Latest Label as DoNothings a Good Thing Financially

Policies to Curb Specialty Drug Costs

Auto-enrollment is helping young workers amass a larger chunk of retirement savings earlier in their careers.

By Rita Pyrillis

By Patty Kujawa illennials have a reputation for being self-absorbed, entitled and downright bratty.

But a recent study shows they are actually doing a lot of good for themselves when it comes to saving for retirement.

To be honest, their impressive savings rates are mostly a result of them doing nothing.

Employers are setting these workers up to succeed by instantly enrolling them in 401(k) plans and by bumping contribution rates each year they stay. For the most part, these millions of Americans born roughly between 1982 and 2003 aren’t doing anything to change what is being done for them.

“Automatic enrollment is a great feature that brings people into plans that might not necessarily do so otherwise,” said Aron Szapiro, director of policy research for Morningstar Inc. According to Bank of America Merrill Lynch’s Plan Wellness Scorecard, 46 percent of new workers were automatically enrolled in 401(k) plans in 2016, compared to 33 percent in 2015. Also, pre-programmed contribution rates for millennial workers were 10 percentage points higher than any other age group during the first half of 2016.

“An increasing number of plans are automatically enrolling all employees, rather than new hires only, as well as combining automatic enrollment with automatic increase,” said Gary DeMaio, defined contribution product head at Bank of America Merrill Lynch. “This may be why we see an increase in participation particularly for millennials, as this process becomes easier for younger employees.”

“Technology has also played a part in improving millennial engagement, evidenced by the high percentage of enrollments we see with this group via their mobile device,” DeMaio said in an email.

But some experts worry that millennials will eventually use their 401(k) plans as checking accounts and not for retirement. According to the Plan Sponsor Council of America’s 59th annual survey of profit sharing and 401(k) plans, 82.8 percent of plans allow participants to take loans. Meanwhile, 83.8 percent of plans let workers withdraw money for special circumstances, like buying homes, tuition or medical expenses.

“A lot of people drift into [401(k) plans], and that’s great,” Szapiro said.“But we need to make sure assets are preserved for retirement.”

The PSCA survey shows that about a quarter of participants take out loans and the average loan was $9,390 in 2015, compared to $6,216 in 2014. Workers who take loans or make withdrawals from their 401(k) accounts are missing out on letting their money grow over time, said Robyn Credico, defined-contribution consulting leader for Willis Towers Watson.

“For a lot of employers, the prevalence of loans is fairly substantial,” Credico said.

Employers should supplement these benefit programs with financial wellness education, Credico added. “If employers can help educate people on how to balance their budgets, manage debt and save, that will be much more effective for employees,” Credico said.

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hen drug company Mylan raised the cost of the EpiPen last year, a public uproar ensued and pushed into the spotlight an issue that employers have been concerned about for years — soaring pharmaceutical costs. In response to growing pressure from consumers, employers and legislators, the National Business Group on Health has released a series of policy recommendations to curb the costs of specialty drugs.

These expensive drugs treat serious and complex conditions such as cancer and rheumatoid arthritis and are the biggest drivers behind the steady rise in pharmaceutical costs. According to one study of 115 specialty drugs, a year’s worth of prescriptions for a single drug retailed at $53,384 a year, on average, in 2013 — more than the median U.S. household income. The study was released in 2015 by the AARP Public Policy Institute.

“The rising prices and total expenditures for specialty drugs has risen to the top of the list of cost drivers, so it’s a top concern for employers and for the people who need these drugs,” said Steve Wojcik, vice president of public policy at the NBGH. “Our goal with this brief was to determine policy obstacles that reduce competition and drive up prices and present it to policy makers.”

The 31-page report highlights policy recommendations that include changing Medicare and Medicaid rules to encourage value-based payment arrangements, which tie reimbursement amounts to better patient outcomes. Specifically, it promotes changes to Medicare Part D, the federal program that subsidizes the costs of prescription drugs and prescription drug insurance premiums for Medicare beneficiaries, and to Medicare Part B, the medical benefit under which specialty drugs are reimbursed.

The brief also encourages increasing the use of biosimilars — the generic versions of specialty drugs, which are also called biologics. Finally, it outlines measures to increase competition among drug companies by reducing patent exclusivity rights from 12 to seven years. w o r k f o r c e . c o m | Workƒorce

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FOR YOUR BENEFIT

Employers Missing the Point of Rising Employee Stress A survey notes their concern for employees as companies target the wrong answers.

By Rita Pyrillis

W

hile most employers and employees tably, the vast majority of workers — 85 creased by nearly 40 percent. would agree that stress in the work- percent — who say they’ve experienced “It was a bit of shock to us,” said David place is a persistent problem, they often a great deal of stress at work in the past Ashworth, CEO of MediKeepers, which differ dramatically on the causes — a dis- 12 months rate the efforts of their work- develops employee wellness platforms. connect that can undermine the success of place as fair or poor.

“Intuitively, we were thinking that the any mental wellness program.

It is a pricey problem for employers. stress was more. You think about it in In a recent survey of workplace health According to the American Institute of your own life and it’s certainly going up.” and productivity, employers identified Stress, a nonprofit that aims to educate MediKeepers, whose clients represent big-picture challenges like technology, the public on the issue, job stress costs a variety of industries, surveyed 3 million which makes it harder to separate work and home, and organizational change as top stressors while employees were focused on more immediate and personal concerns like low pay, unclear job expectations and company culture.The stressor that employers ranked last — company culture — was the third choice of employees, according to Willis Towers Watson’s 2015-16 “Staying@Work” survey.

This disconnect underscores the fact that most employers don’t understand what causes stress for their employees and often leads them to the wrong solutions, according to Tom Davenport, a senior U.S. industry more than $300 billion an- employees who took an anonymous onconsultant at Willis Towers Watson. nually in absenteeism, turnover, dimin- line survey over a span of three years.

“Everyone experiences stress differently ished productivity and medical, legal and Ashworth said that the results suggest and organizations have a hard time deal- insurance costs. And Americans are more that a well-designed wellness program ing with individualized solutions,” he stressed out than ever, according to the can reduce stress. said. “HR departments aren’t equipped American Psychological Association’s Which brings the conversation back to to deal with complex social and psycho- 2015 “Stress in America” survey.

Davenport, who cautions employers to logical issues, so they start with solutions While the numbers show a slight in- examine and understand the fundamenand hope that the problem fits. They crease in overall stress levels between tal causes of stress among their employees. look for EAPs (employee assistance pro- 2014-15, the number of adults reporting “Ask yourself, ‘What are our biggest viders) and vendors who provide mind- “extreme stress” has spiked. Twenty-four problems, what’s causing them and what fulness classes, yoga, resiliency programs percent of adults report these levels, can we do about them,’ ” he said. “The — they check the box and say problem compared to 18 percent in 2014, repre- answer lies in some combination of an solved.” senting the highest percentage since individual’s response to stress and the orThe problem is that an emotional 2010. ganizational culture.” wellness program is likely to fail if emWhile there is little hard data showing He advises monitoring sick days and ployers don’t fully grasp how employees that mental wellness programs can in- turnover rates, but also talking with emexperience stress, he said. crease productivity and engagement, and ployees and collecting anecdotes through Understanding the causes and nuances lower rates of absenteeism and health surveys and exit interviews. of workplace stress is the biggest obstacle care costs, one recent survey suggests that “How an individual experiences stress that employers face in dealing with the it can. changes as they move up the ladder,” he problem, according to Davenport.

According to MediKeepers, a San Di- said. “You move further away from averIn fact, nearly half of all working adults ego-based technology firm, between age employee experience because you’re rate the efforts of their workplace to re- 2014 and 2016 the number of employees not the average employee, you are a CEO. duce stress as only fair or poor, according reporting a stress level of 1 — the lowest So there is a built-in disconnect, which is to a 2016 study by NPR, the Robert on a numerical scale — increased by 58 why many executives don’t seem to get it Wood Johnson Foundation and Harvard percent while the number of respon- when it comes to addressing the causes of T.H. Chan School of Public Health. No- dents rating their stress level at 5 de- employee stress.”

“ORGANIZATIONS HAVE A HARD TIME DEALING WITH INDIVIDUALIZED SOLUTIONS.” —TOM DAVENPORT, WILLIS TOWERS WATSON

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FOR YOUR BENEFIT

Benefits Beat

EXPANDING THE DEFINITION OF WELLNESS

By Jennifer Benz

W

hen you consider that most of us spend about one3. Put it in context. One challenge in introducing a third of our adult lives at work, it makes sense that the new well-being program is to make sure that the program workplace can be the epicenter of healthy habits — for body, aligns with and complements the company’s full benefits mind and wallet. ecosystem. Employers need to underscore how the proMany companies are taking this role seriously by treat- gram fits into their overarching corporate philosophy, so it ing their employees more like family members than work- doesn’t feel disconnected from their other HR programs, ers. Like any caring, nurturing parent, employers are con- benefits or business priorities. cerned about keeping their employees healthy, happy and Emotional well-being is a growing part of this holistic in a position to be successful in the future. health approach. Sensing the level of stress that employees This is a welcome evolution — from a laser focus on experience in both their personal and professional lives, physical wellness toward a more holistic philosophy of companies have introduced mindfulness programs that “well-being” that addresses employees’ physical, emotional emphasize meditation practice and relaxation strategies. and financial needs.

Many are also taking a new look at their extended-leave This broadening definition of wellness comes with tre- policies, which encourage a healthy work-life balance, and mendous potential benefits, but also needs a different ap- work-culture campaigns, which can inspire and energize proach than the one-size-fits-all strategy that has often employees by highlighting their common concerns, goals been applied to physical wellness. and successes. Meanwhile, programs Here are four ways to set your aimed at promoting financial wellexpanded wellness program up for ness have become increasingly popsuccess. ular. The idea is that employees can 1. Move from “one size fits be more engaged at work if they’re all” to “choose your own adnot stressed out about financial conventure.” With five generations cerns. currently in the workplace and milAll of these programs need conlennials recently emerging as the text for why the company is investlargest demographic among working (the benefit for the company), ing adults, traditional wellness prowhy employees should care (the grams need to evolve to meet the varying needs of em- benefit for the employees) and how new efforts connect to ployees at different life stages. Employers are gradually other programs. realizing that they can no longer focus solely on health 4. Embed behavioral thinking into strategy, procare costs. They also need to foster a motivated, thriving gram design and communications. One of the most and loyal workforce, and offer useful benefits that meet powerful opportunities for employers is to design the their employees wherever they are. workplace around well-being. Instead of looking at isolated This means less of the one-size-fits-all programs of the programs or asking employees to take steps on their own, past and more of the programs that allow employees to ask,“How can we make it easy to do the right thing?”That customize their own wellness package using various apps question will bring to the surface administrative barriers, and tools, like fitness trackers, nutrition apps and financial confusing program design issues, changes needed to the management tools — and to get rewarded for their efforts. physical workplace, or simple opportunities to better con2. Talk to employees. Engaged employees — those nect programs and resources. who feel their employer sees them as individuals — are By broadening the definition of wellness and creating a more likely to have a vested interest in the company and be new well-being model, employers can find more meaningfully committed to the company’s success. Employees often ful ways to connect their employees with their benefits. express that they want their employers to recognize their Well-being programs that employees can tailor to meet their total well-being, and they want access to resources that show personal needs and preferences offer tremendous opportunithat this is a priority. Because of this, many companies find ties for employers to improve employee engagement and that having a competitive wellness package is key to attract- increase the overall value of their benefit offerings. ing — and keeping — top talent. But too often, wellness programs are designed and implemented without employee Jennifer Benz is CEO and founder of Benz Communications, a input. Reach out to your employees through surveys, focus San Francisco-based employee benefits communications agency. groups and one-on-one interviews to find out what they She was honored as one of Workforce’s Game Changers in 2013. need and what will resonate with them.

To comment, email editors@workforce.com.

EMPLOYERS’ CONCERNS TO KEEP EMPLOYEES HEALTHY AND HAPPY CONTINUES TO GROW.

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Congratulations

Kellye Whitney on being named one of

The Must-Know Writers on LinkedIn™

TOP VOICES She’s inspiring new ideas and sparking conversations. And LinkedIn™ ranked Kellye as one of the top writers in media. To see her award-winning work, visit www.workforce.com.

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Legal Bottled Up at Work Federal law under the ACA currently requires that employers provide for time and privacy for new mothers.

By Sarah E. Bell

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others are among the fastest-growing segments of the U.S. labor force. Retention of women, particularly women with children, has become a challenge, due in part to the inability of employers to accommodate their unique needs and circumstances. One of those needs and circumstances is breast-feeding.

According to the American Academy of Pediatrics, although breast milk is the optimal source of nutrition for infants up to 12 months, many working moms who want to breast-feed stop when they return to work because they just aren’t afforded the time or privacy to pump, or the ability to nurse their babies while on the job.

Employment is now the norm for U.S. women of childbearing age. According to the Department of Labor, in 2013, 62 percent of all mothers with children younger than 12 months were employed, and approximately 70 percent of mothers with children under age 18 were employed. According to the Centers for Disease Control and Prevention, close to 80 percent of mothers start breast-feeding immediately after birth, but only about 22 percent of those moms are breast-feeding exclusively six months later.

Employed women currently are less likely to initiate breast-feeding, and they tend to breast-feed for a shorter length of time than women who are not employed. This is because many employed mothers who are lactating must express milk at work, which is not an option for all working moms.

Where and when do women pump who want to breast-feed but have jobs that require them to be in public or on their feet all day? Federal law and a number of states now require employers to provide time and space for new mothers to express breast milk. Not only is it the law, but retaining female employees is likely in the business’ best interest as well.

The Affordable Care Act sets forth several requirements for accommodation of breast-feeding employees. Section 4207 amends the Fair Labor Standards Act of 1938 to require an employer to provide reasonable break time for an employee to express breast milk for her nursing child for one year after the child’s birth each time such employee has need to express milk.

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The employer is not required to compensate an employee receiving reasonable break time for any work time spent for such purpose unless the employee is routinely provided compensated breaks; then an employee who uses that break time to express milk must be compensated in the same manner as other employees. The employer must also provide a place, other than a bathroom, for the employee to express breast milk.That place must be “shielded from view and free from intrusion from coworkers and the public.”

In addition, the federal Right to Breastfeed Act (included as part of a Treasury-Postal appropriations bill) permits a woman to breast-feed her child “at any location in a federal building or on federal property, if the woman and her child are otherwise authorized to be present at the location.”

What Employers Are Subject to the Law? All employers covered by the FLSA must comply with the break time for nursing mothers provision, unless they have fewer than 50 employees and can demonstrate that compliance with the provision would impose an undue hardship on their business. Furthermore, federal requirements do not preempt state laws that provide greater protections to employees.

Under federal law, most employers must provide breast-feedmarch/april

2017

ing employees who are non-exempt under the FLSA with “reasonable break time” and a private place to express milk during the workday until the child turns a year old.

The private place must be “shielded from view and free from intrusion from co-workers and the public.” It also must not be a bathroom or restroom.

A number of state employment laws, such as New York’s, provide even greater protections to breast-feeding mothers.

There are many ways to support breast-feeding in the workplace. Some accommodations and their enactment may vary and/or depend on the size or type of business. While not required by law, some employer accommodations of nursing moms may include: • Providing a designated clean, private, lockable, non-restroom space for pumping; ideally, including a refrigerator/freezer and workstation so employees can continue to work if possible/ necessary.

• Allowing flexible scheduling to support milk expression during work hours.

• Providing on-site, nearby or child care support/ assistance so infants can be close to their nursing moms.

• Providing or providing access to high-quality breast pumps and pump parts.

• Paying for or reimbursing the expense of shipping breast milk home when nursing moms must travel for business trips (some companies use a company called Milk Stork).

• Giving mothers flexible options for returning to work for the first six months to a year after a child’s birth.

How can a business accommodate its female employees while at the same time maintaining its operations? The best policy concerning new mothers and breast-feeding is flexibility.

What works for one mom — or one business — may not work for another.Thus, evaluating a particular employee and business’ needs on a case by case basis is often a good strategy. Providing a private, clean room, a refrigerator and encouraging colleagues to be understanding and respectful of pumping time are baseline needs for a new mom.

Many moms cite a “supportive” business and “understanding colleagues” as important factors in their breast-feeding success. Ultimately, your employees’ success is your business’ success too.

Sarah E. Bell is an attorney with Pryor Cashman in New York and is a member of the firm’s litigation, labor and employment, family law, intellectual property, and media and entertainment groups. To comment, email editors@workforce.com.

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Legal Legal Briefings COURT OKS FLSA EMOTIONAL DISTRESS DAMAGES The plaintiff, Pineda, brought claims against his former employer, JTCH Apartments, for unpaid overtime and retaliation. Pineda had worked as a handyman for JTCH Apartments performing maintenance around the apartment building where he lived. JTCH compensated Pineda in part by providing him with a discount on his rent. Pineda filed a complaint for unpaid overtime, and three days later JTCH presented Pineda with a notice to vacate for failure to pay rent. The alleged unpaid rent equaled the amount that JTCH had discounted the rent in exchange for Pineda’s work. Pineda amended his complaint to add a claim for retaliation, and requested that the court instruct the jury on emotional distress damages for his retaliation claim. The trial court rejected Pineda’s requested instruction, concluding that the FLSA did not allow for the recovery of emotional distress damages on retaliation claims.

Pineda ultimately prevailed on his claims for failure to pay wages and retaliation, and appealed the trial court’s refusal to instruct the jury on emotional distress damages. The 5th Circuit sided with Pineda, reversing the trial court, ruling that the language in the FLSA providing for “such legal or equitable relief as may be appropriate” authorized award of emotional distress damages. Pineda v. JTCH Apartments, LLC, 15-10932 (5th Cir. 2016) IMPACT: Employers face increased potential liability for retaliation claims under the FLSA, even on relatively small claims.

COSTCO ACCOUNTABLE FOR NOT ENDING ABUSE Dawn Suppo worked at Costco’s Glenview, Illinois, location between 2009 and 2012. Between August 2010 and September 2011, a customer, Thad Thompson, harassed Suppo by regularly stalking her around the store, remarking on her looks, asking her about the men in her life and touched her at least twice without her permission. Suppo claims that she was vocal about her complaints of discomfort with Thompson and asked her manager on repeated occasions about prohibiting Thompson’s presence in the store.

Suppo left the company after a year of medical leave that she says was spurred by one final incident in which Thompson became angry at her refusal to let him film her. The EEOC brought suit against Costco on behalf of Suppo, seeking to hold Costco liable for failing to act on Suppo’s complaints of harassment and failing to take reasonable steps to prevent it. Although Costco claimed that Suppo only submitted two complaints, each a year apart, and each time Costco took concrete action to stop the alleged misbehavior, including eventually terminating his membership and prohibiting him from shopping at any Costco location, a jury nonetheless handed down a verdict against Costco for $250,000. The jury did not, however, find that Costco acted with reckless disregard for Suppo’s Title VII rights and declined to punish Costco by imposing punitive damages. EEOC v. Costco Wholesale Corp., Case No. 14-cv-6533 (N.D. Illinois, Dec. 20, 2016).

IMPACT: Employers have a duty to protect their employees from the harassment of customers and must take reasonable steps to prevent any such harassment.

Mark T. Kobata and Marty Denis are partners at the law firm Barlow, Kobata and Denis, which has offices in Beverly Hills, California, and Chicago. To comment, email editors@workforce.com.

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Legal

A Supreme Case on Arbitration Jon Hyman |

I

The Practical Employer

n AT&T Mobility v. Concepcion, the United States Supreme Court held that a business could compel a group of individuals to waive their right to file a class-action lawsuit and instead arbitrate their collective dispute. Employers rejoiced, believing that they finally had the weapon they needed to battle the scourge of wage-and-hour class actions.

The National Labor Relations Board, however, had different ideas.

In its seminal 2012 decision, D.R. Horton Inc., the NLRB held that an arbitration agreement violated the National Labor Relations Act’s protections for employee concerted activity. The facts are pretty straightforward. The employer required all of its employees, as a condition of their employment, to sign a master arbitration agreement, under which they agreed: • To submit all disputes and claims relating to their employment to final and binding arbitration.

• That the arbitrator “may hear only … individual claims,” and “does not have authority to fashion a proceeding as a class or collective action or to award relief to a group or class of employees in one arbitration proceeding.”

• To waive “the right to file a lawsuit or other civil proceeding relating to … employment with the Company.”

The NLRB concluded that the agreement “unlawfully restricts employees’ Section 7 right to engage in concerted action for mutual aid or protection,” and held that the employer “violated Section 8(a)(1) by requiring employees to waive their right to collectively pursue employment-related claims in all forums, arbitral and judicial.”

In the four years since they decided D.R. Horton, the NLRB has invalidated too many similar arbitration agreements and class-action waivers to count, and further expanded D.R. Horton to make it nearly impossible for any class-action waiver to pass muster.The board has even gone so far as to invalidate agreements that expressly carve out the right for employees to pursue claims with state and federal administrative agencies such as the NLRB. In the board’s opinion, even those agreements are illegal because rank-and-file employees aren’t lawyers and aren’t capable of reading and understanding the agreement: “Viewed from an employee’s perspective … it would take ‘specialized legal knowledge’ to determine whether employees’ right to file Board charges is permitted or precluded by these caveats.”

On appeal, however, not all federal circuit courts have

been kind to D.R. Horton.The 5th Circuit overturned D.R. Horton itself, while other circuits have sided with the NLRB on this important issue.

Now, however, the Supreme Court is poised to have the final say. It has agreed to hear the appeal of three cases, which should put this issue to bed once and for all.

In NLRB v. Murphy Oil USA (5th Cir., holding that the “corporation did not commit unfair labor practices by requiring employees to sign its arbitration agreement or seeking to enforce that agreement in federal district court.”); Lewis v.

Epic Systems (7th Cir., holding that an arbitration agreement that “precludes employees from seeking any class, collective, or representative remedies to wage-and-hour disputes” violates the NLRA); and Morris v.

Ernst & Young LLP (9th Cir., agreeing with Lewis, holding that “an employer violates the National Labor Relations Act by requiring employees to sign an agreement precluding them from bringing, in any forum, a concerted legal claim regarding wages, hours, and terms and conditions of employment.”), the justices agreed to decide whether agreements to require employees to forgo class actions or collective proceedings, and instead resolve employment disputes via individual arbitration, violate the NLRA. How the Supreme Court decides this issue is of critical importance to employers. Wage-and-hour class actions are one of the biggest risks that employers face.

The law that governs the payment of minimum wage and overtime in the country, the Fair Labor Standards Act, is more than 70 years old. It shows every bit of its age.

Over time it’s been amended again and again, with regulation upon regulation piled on. What we are left with is an anachronistic maze of rules and regulations in which one would need a Ph.D. in FLSA (if such a thing existed) just to make sense of it all.

Since most employers are experts in running their businesses but not necessarily experts in the ins and outs of the intricacies of the Fair Labor Standards Act, they are fighting a compliance battle they cannot hope to win.And the prize for noncompliance is the cost of defending a class-action lawsuit.

Employers desperately need the Supreme Court to overturn D.R. Horton so that they can recapture a key weapon against the wage-and-hour class actions.

Wage-and-hour class actions are one of the biggest risks that employers face.

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Jon Hyman is a partner at Meyers, Roman, Friedberg & Lewis in Cleveland. To comment, email editors@workforce.com. Follow Hyman’s blog at Workforce.com/PracticalEmployer.

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2017

AN ANALYTICS SERVICE FOR TALENT

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We know who’s out there.

TheTalentTracker.com

PROFILE

Arianna Huffington

Looking to Thrive in a Crowded Market

BY ANDIE BURJEK

Late last year Arianna Huffington traded in her Huffington Post press card for a startup company in corporate wellness.

In this Q&A she discusses what will define success for her company, Thrive Global, and how it will differ from the others.

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F

or 11 years Arianna Huffington gained massive influence in media and rubbed elbows with A-list celebrities, international politicians and business leaders as president and editor-in-chief of The Huffington Post. Huffington, 66, had followed in the journalistic footsteps of her father but pivoted drastically in 2016 when she made the surprise announcement that she was stepping down from her prominent position as a media mogul to begin a corporate wellness startup. Thrive Global enters the crowded health and wellness space with a mission to end the workplace stress and burnout epidemic on a global scale using scientific solutions.

Huffington’s company, which officially launched in New York in November, offers workshops, e-courses and certification programs, as well as a host of wellness technology apps and an e-com-

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2017

Arianna Huffington

The Health of

Wellness

PHOTO BY MAX LAKNER/BFA.COM

PROFILE

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Arianna Huffington

merce store. The start-up also features editorial content on a range of topics like sleep, meditation and stress reduction and sends out weekly newsletters aggregating relevant health and wellness stories. And it’s partnered with companies like Uber, Under Armour and Accenture for corporate wellness training.

Huffington serves as CEO, alongside Thrive Global president Abby Levy, a former consultant to the consumer product and digital media businesses, and Maya Major, the “chief of stuff ” who heads human resources, business operations and finance.

THE INDUSTRY HAS EXPANDED FROM A FOCUS ON PHYSICAL WELLNESS TO A BROADER FOCUS ON OVERALL WELL-BEING. Thrive Global’s entry in the corporate wellness space marks an example of the changing industry, which has expanded from a focus on physical wellness to a broader focus on overall well-being. This allows new companies to specialize on one particular area of the well-being field.

Some 61 percent of corporate well-being companies specialize in fitness services, smoking cessation, nutrition and weight management, and alcohol and drug abuse services, according to the IBISWorld Industry Report from July 2016. Thrive Global is among the 11 percent that addresses stress management.

Huffington, who sees great growth potential for her stress- and burnout-focused company, responded to questions in an email interview with Workforce to offer her

opinion on the wellness industry, the kind of impact she hopes Thrive Global will have and why this is the perfect time to combat the burnout epidemic in the workplace.

Workforce: What is your opinion of the corporate wellness industry? Where does Thrive Global fit in?

Arianna Huffington: Right now a lot of corporate wellness programs are focused on downstream harm reduction, working only on the symptoms. But 75 percent of health care costs in the U.S. are about treating preventable, often stress-related conditions like diabetes, high blood pressure and heart disease. So what we’re doing at Thrive Global is focusing upstream on the root causes — burnout and stress.

We’re also following the science to come at it from a different premise. It’s not about balance. Thrive Global is based on the truth that work and life, well-being and productivity are not on opposite sides — so they don’t need to be balanced. They’re on the same side and rise in tandem.

Increase one and you increase the other, which is what the science clearly shows.

And finally, we’re also using science to drive behavior change that can be sustained and incorporated into people’s daily lives.

WF: Why start Thrive Global in such a crowded field? What will you do differently than other companies?

Huffington: For what we’re doing, the field isn’t crowded.

In fact, I think we’re really the only player that brings together all of the elements we do. It starts with our commitment to following the science, and using that to inform the three interconnected pillars of the company. First, there are corporate trainings and workshops. Second is our media platform, The Thrive Journal, designed to be the global hub for the conversation on productivity and well-being.

This features not just the latest science, but also commentary by new role models showing how you can be in the arena and be a successful leader without burning out.

And third is our e-commerce platform, which offers our curated selection of the best well-being technology, products and services. All these elements work together to produce our menu of products, services and sustainability that we think is unique.

At the Thrive Global launch event. From left, Sherry Turkle, MIT professor; Arianna Huffington; JPMorgan Chief Marketing Officer Kristin Lemkau; Accenture Chief Leadership and HR Officer Ellyn Shook; and SAP President North America Jennifer Morgan.

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WF: Is the industry poised for consolidation or is there still plenty of room for growth? If so, in what areas is there room for growth?

Huffington: I think there’s huge room for growth.We’re really at an inflection point right now, coming out of an idea of work and success that dates back, really, to the Industrial Revolution.

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PROFILE

The Health of

PHOTO COUTRSEY OF THRIVE GLOBAL

Wellness in the fields of sleep, neuroscience, productivity and performance. And the results of the science are clear — that when we prioritize our well-being, our performance goes up dramatically, across the board. And yet, our work culture has only just begun to shift. And even as the business world begins to internalize these findings, the growth of technology and the pace of change in our lives makes ending this culture of burnout even more challenging. And though technology has made us feel more harried and distracted, one of the next frontiers of technology is technology that actually helps us disconnect, shut off the noise and reclaim time and space for ourselves. So, yes, there is a lot of opportunity for growth; we’re just at the beginning.

WF: In your opinion, what should HR and benefits leaders look for in a corporate wellness program?

Huffington: It’s important to intervene upstream, where the stress and burnout are created. This includes, of course, flexible schedules, email policies that discourage after-hours work, nap rooms or nap pods, and robust vacation policies.

And because work and life are integrated, it should also include training and assistance in helping employees prioritize their sleep at home.

But most important, even the best wellness plans won’t be maximized if there’s not buy-in from senior management to change the incentive structure. If HR is saying one thing, but senior management is still incentivizing burnout culture, we know which message most employees will listen to. So along with great plans to prioritize well-being, companies need the culture shift to be modeled at the top, so it’s those employees who prioritize their well-being who are celebrated and promoted instead of those burning themselves out.

WF: You’re a big advocate of proper sleep.Why? Huffington: Because sleep, as the latest science shows, is connected to virtually every aspect of our physical and mental health. From heart disease, high blood pressure and obesity to depression and anxiety, the dangers of inadequate sleep are nearly endless. And when we sleep well, we increase our creativity, productivity and make better decisions.

WF: How does nutrition fit into corporate wellness?

Huffington: Nutrition is very important. But as with other aspects of our well-being, it can’t be considered in isolation.

Nutrition, stress, weight management and sleep are all deeply connected, and so it’s not enough to just advocate good nutrition or provide healthy snacks, though those are important. Nutrition is just one part of the overall well-being discussion.

WF: Are you a fan of the carrot-and-stick approach to wellness involving financial rewards and penalties?

Huffington: I think carrots are more effective than sticks.

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Arianna Huffington, CEO of Thrive Global, believes that work and life, well-being and productivity are intrinsically connected.

they want to do well in their jobs and they want to feel happy and fulfilled. So what’s needed is to lower the barriers, offer institutional support and set up a culture that incentivizes all of these.

WF: Some critics say corporate wellness doesn’t save money or improve health.Your response?

Huffington: They’re simply wrong. And it’s not a matter of opinion; the science and data are clear. If well-being programs are instituted successfully, the benefits on health and the bottom line are clear in case after case.

WF: Is ROI important while measuring success of a corporate wellness program?

Huffington: Definitely. And with the right program, you’ll see it. At Aetna, when CEO Mark Bertolini offered well-being programs that included meditation and yoga to his employees, the result was a 7 percent drop in health care costs in 2012, and 69 minutes of additional productivity per day for the employees who participated.

WF: Where do you see the wellness industry in five years?

Huffington: I think it’s going to continue to grow and grow. But the true mark of success will be when we don’t actually see these programs as “wellness programs” per se, but just how business is done.

Andie Burjek is a Workforce associate editor. To comment, email editors@workforce.com.

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Weighing the Value of

Workplace Wellness Companies continue investing in workplace wellness. But can money buy your employees health?

BY ANDIE BURJEK

I

n terms of workplace initiatives, corporate wellness is a relatively new concept that didn’t begin developing until the late 20th century.And for a relatively young industry, it has witnessed impressive growth since its inception in the 1980s.

Employers have plenty of options to choose from, as 951 companies specifically specialize in corporate wellness, according to IBISWorld’s industry report from July 2016.

And the vastness of the broader wellness industry allows a corporate customer many options including health clubs, weight loss programs and nutrition programs that don’t

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primarily cater to employers.

Corporate wellness vendors also have a lot more room to grow. IBISWorld estimates industry revenue is projected to grow to $7.6 billion annually by 2021, up 3.3 percent from 2016. Only 9 percent of global workers have access to a workplace wellness program, according to the Global Wellness Institute.

But defining value in wellness remains elusive. The industry’s growth spurt is a boon for vendors as the expansion of wellness to total well-being presents more opportunities, including former Huffington Post Publisher Arianna Huffington’s high-profile debut of her new wellness company Thrive Global late last year.

Stress management programs and financial wellness programs also are spreading, adding to the array of offerings for employees. That’s leading some to question whether the expansion epidemic is too much of a good thing for employers under pressure to make the right choice for their workers, who now expect a wellness offering as part of their benefits package.

Emily Noll, national director of CBIZ Wellness Solutions, said employers are discovering they must offer wellness benefits to attract and retain employees. “[Wellness] could be different in a few years, but it’ll be there. It’s part of the expectation of what employers offer employees,” she said. “They’ve moved from nice-to-havestatus to must-have status.”

Technology from telehealth to fitness apps also continues to promote growth in the industry by allowing vendors to access employees in real time and personalize the employee experience. Employers look toward technology to motivate employees to take an active role in improving their health, Noll added.

Not everyone has a positive perspective on this growth.

Wellness has too many vendors, according to Al Lewis, CEO and founder of Quizzify, a company that provides tests designed to make employees smarter about health and health care. “You know there are too many vendors in an industry when seven of them have the same name,” he said.

“[WELLNESS BENEFITS HAVE] MOVED FROM NICETO-HAVE STATUS TO MUSTHAVE STATUS.” — EMILY NOLL, CBIZ WELLNESS SOLUTIONS Such growth doesn’t benefit either the employee or the employer, he argued.Vendors often do wellness to employees rather than for them, without garnering actual results, Lewis said.

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Add These Elements for a Healthy Wellness Program There are several considerations that play into a well-designed wellness program, according to Jeff Levin-Scherz, national co-leader at Willis Towers Watson’s Health Management Practice.

• Personalization: Employers should offer a wide range of choices. A single program will not work for every employee, each of whom has different needs.

• Technology: Programs that use technology well are likely to do better. They’ll be more affordable and more accessible.

• Social networks: A program that’s aimed at one person is not as good as one that allows them to involve family and friends.

• Evidence: Don’t offer incentives for things that aren’t recommended or that encourage employees to take on unhealthy behaviors.

• Measurements: Include measurements from the start rather than relying on a vendor to collect them later.

That may be a tactic to merely collect revenue.

—Andie Burjek

sion, it’s paradoxically seeing signs of consolidation, too. Health care transparency company Castlight Health acquired well-being platform Jiff in the first transaction of 2017, and in February 2016 corporate wellness giant Virgin Pulse acquired two wellness companies, Rhode Island-based ShapeUp and Australia-based Global Corporate Challenge.

While some predicted an acquisition craze in 2016, few blockbuster deals materialized. Still, Noll said to expect more consolidation. Some wellness startups now 3 to 5 years old will have to sell in order to pay back investors. A company also may realize they can’t keep up with the technological demands and partner with a more tech-based company in order to meet client needs.

As wellness vendors become more specialized and technology expands, employers face a workplace wellness world that is no longer a one-stop shop, Noll said.

Whereas previously they would use one vendor for all of their wellness needs, that’s becoming less common.

Employers may need to collaborate with multiple vendors, she said.

Consolidation may cause challenges for employers as well, Noll added.They should vet the program and account management as if they’re looking at a new company to make sure they don’t lose the personal touch they want from a vendor. march/april

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Wellness The Value of Wellness When a company invests in a wellness program, they have a lot to choose from and much to consider before partnering with a vendor.

“Before a company implements a wellness program, they have to understand what their goals are for wellness,” said Adam Ochstein, CEO of HR services company StratEx. “Is it just to have a check in the box to say,‘We have a wellness program,’ or are they really truly committed to what an effective wellness program does?”

Interestingly, although many employers use wellness programs to control health costs, fewer than half measure their program’s return on investment. And several academic studies have failed to show substantial cost savings, according to a 2016 Willis Towers Watson report.

Wellness advocates address this disconnect between expectations and ROI in several different ways. Some companies look at wellness as a short-term fix rather than a realistic timeline for wellness to work, Ochstein said.

“A good wellness vendor will be very transparent,” he explained.“Typically, you will see an increase in health care costs in the first two years. Long term, you’ll see a reduction.”

Costs initially rise because employees get an annual check-up and spend money on health-related expenses before they see the any results.

Others argue that workplace wellness has a value, but it’s not economic. It’s proven that such programs are bound to lose money for a company, said Quizzify’s Lewis, and they must rethink the actual value.

well-designed program will lose considerably less than a poorly designed one, he said.

Wellness programs won’t change the behaviors of many unhealthy employees, Lewis added, but they will engage the already healthy employees and change the behavior of some of the undecided. “It’s important to give employees the opportunity to take care of their health,” he said.

It’s All in the Design

A major design aspect to improving a wellness program is a performance guarantee that contractually binds a vendor to a set goal, according to Jeff Levin-Scherz, national co-leader at Willis Towers Watson’s Health Management Practice.

“The performance guarantees need to be carefully written, and the goal of them should be to encourage vendors to put the right resources into the employer’s program,” he said. “It’s important not to over-engineer them and not to make them so difficult to agree on that [as a result] you end up spending too much on the performance guarantee and not enough on the actual program.”

A careful use of incentives like rewards and punishments can also help create an effective program, according to Ochstein. People often are motivated by cost.

“If you look at what curbed smoking in this country, it wasn’t the warning label on the side of a pack of cigarettes, which have been there since the ’70s,” he said. “It’s when cities like New York began taxing cigarettes to the point where it impacted the wallet.”

Behavior changes often occur when there is a life-altering diagnosis, such as diabetes or cancer, he added. “And hopefully it impacts our pocketbook before it impacts our life.”

Corporate wellness has not lived up to the guidelines it should aspire to, argued Lewis, who once worked in the industry. Vendors design programs that encourage —AL LEWIS, QUIZZIFY employees to take on unhealthy behavior s like “If I’m going to be spending real dollars as well as direct- over-screening in order to make more money, and ing my employees’ valuable attention to this program, how rarely do companies or HR departments push back. can I be sure these programs will deliver the value I really The U.S. Preventive Services Task Force provides want?” said Lewis. “For some employers, that might mean guidelines for how often people should get screened a smaller investment and commitment to wellness pro- for certain problems. grams. For others, that might mean a rethinking on whethSimilarly, programs such as corporate crash diet compeer a wellness program is supposed to lower medical costs or titions may motivate employees to take on unhealthy bebe something that will help make employees easier to re- haviors to lose weight and not support sustained weight cruit and retain and help improve morale in the company.” loss, Lewis added.

Value is exhibited through a company showing it cares Other than adhering to healthy guidelines, the other key about employee well-being, he said. Employers should realize any wellness program will lose them money, though a WELLNESS continued on page 48

‘THE MISSING ELEMENT OF ESSENTIALLY EVERY WELLNESS PROGRAM IS EMPLOYEE EDUCATION.’

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A Check-up on Value-based

Health Care Can accountable care organizations thrive in a fickle employer health care marketplace?

How excellent is a center of excellence?

Are narrow networks too slim to work?

W

BY RITA PYRILLIS

hen it comes to improving employee health while managing costs, a growing number of large employers are taking matters into their own hands.

They are working directly with hospitals and physicians to provide quality health care, negotiating payment arrangements, and in some cases bucking the insurance middleman entirely and contracting with providers.

It’s part of the ongoing evolution of value-based health care, an approach that focuses on clinical

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value over volume and good health outcomes over Sound area and then later expanded it to locations in cost savings. While it’s not a new concept — business St. Louis and Charleston, South Carolina. services company Pitney Bowes Inc. adopted this apEmployees trade a smaller selection of providers for proach in 2001 when it began waiving co-payments lower costs and perks such as same or next-day apfor drugs to treat diabetes and heart disease — interest pointments or free generic prescription drugs. in value-based health care is picking up steam.

In January, Boeing expanded the Preferred PartnerThe goal of value-based health care is to eliminate ship to 15,000 employees in Southern California. Tounnecessary care. This can be achieved through pay- day, nearly 30 percent of the company’s 54,000 eligiment arrangements that encourage effective, clinically ble employees are enrolled in an ACO. proven care at a given cost or through delivery models Boeing is no stranger to cutting-edge approaches to like accountable care organizations, or ACOs, that re- health care delivery. In 2007, the company launched a ward providers for good health outcomes or through two-year medical home project for employees with so-called centers of excellence, or COEs, which spe- chronic illnesses. The medical home concept puts the cialize in certain services like hip replacements, cardi- patient at the center of a team of providers who are ac care or telemedicine. paid extra to manage their care.

“When we talk about value-based health care it’s “We dipped our toe in the water of doing direct getting at something that’s been elusive to employers relationships in 2007 with the medical homes project,” for years,” said Brian Marcotte, president and CEO of said Jeff White, director of health care strategy at Boethe National Business Group on Health, an advocacy ing. “We wanted to do more on a populationwide bagroup for large employers. sis. We were following what Medicare ACO pilots “There’s a belief that employers only care about cost were doing. ACOs are about accountability for manbut that couldn’t be farther from the truth. When you aging a population and asking providers to take some think about it, every decision an employer makes is a risks and also share in the savings.” In an accountvalue-based decision — it’s how they run their busi- able-care organization, providers offer coordinated nesses. It makes sense that they would take this ap- care for a large population and can earn bonuses for proach to health care.” meeting certain cost and quality targets or face penalIn fact, 45 percent of large employers are offering ties if they don’t. While it’s too early to provide hard employees access to a center of excellence, up from 37 data on cost savings, White said that early indicators percent in 2015, and another 32 percent are planning look promising. to do so by 2018, according to a recent study by em“Preventive care screening rates are increasing, meaployee benefit consulting sures of care for diabetics firm Willis Towers Watand other chronic condison. So-called “narrow tions are improving, and networks” with a limited the coordination of care number of providers that for individuals with muloffer quality services at a tiple chronic conditions lower cost are also growis also improving,” he ing in popularity. Acsaid. cording to the survey of Because they are com600 large U.S. employers, plex and relatively new, 20 percent offer “high employers have been hesperformance networks” itant to embrace ac— BRIAN MARCOTTE, NBGH today, up from 11 percent countable care organizain 2015, and 39 percent of those surveyed said they tions, according to Marcotte. Slightly less than might add these networks in the next three years. one-fourth of employers surveyed by the NBGH will While only 8 percent of employers are contracting be offering ACOs in 2017. But that is slowly changdirectly with medical service providers, such as COEs, ing.

ACOs and patient-centered homes, 16 percent are “Last year 21 percent offered ACOs so there’s a considering it, according to the report. slight uptick,” he said. “Employers are trying to understand the value of ACOs. A health plan can offer an Boeing ACO Takes Flight employer 150 to 200 ACOs, but how do you know One such employer is Boeing Co., which bypassed what that means in terms of costs or what employees insurers to work directly with hospitals and physicians can expect from access or quality of care?” in establishing an ACO, called the Preferred PartnerTo help employers answer some of those questions, ship. Launched in 2014, the Chicago-based aerospace the NBGH recently launched an ACO guide “to facilcompany offered the option to employees in the Puget itate conversations between employers, health plans,

“EVERY DECISION AN EMPLOYER MAKES IS A VALUEBASED DECISION. ... IT MAKES SENSE THEY WOULD TAKE THIS APPROACH TO HEALTH CARE.”

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A Glossary of Employer Health Care Models Value-based health care takes on many forms.

Here is a glossary of some of the most common payment and health care delivery models reflecting the value-based concept: Accountable care organizations: A model of health delivery that pays providers based on the quality of their services, not on the quantity, which has been the case under traditional fee-for-service medicine. Doctors and hospitals share the responsibility for providing coordinated care so that patients get the right treatment at the right time.

Centers of excellence: These are designated facilities that have demonstrated superior outcomes and cost efficiency in treating certain conditions. These facilities specialize in services such as hip replacements, back, knee, infertility and cardiac care.

Patient-centered medical homes: This model hinges upon an ongoing, personal relationship between a patient and doctor, who along with their support team is focused on providing comprehensive and integrated care.

Bundled payments: Unlike a fee-for-service approach where services are paid for separately, under this arrangement providers receive a single payment based on a set price. Also called episode-based care, this could involve multiple providers in multiple settings.

—Rita Pyrillis

and health systems regarding an ACO’s maturity level, structure, capabilities and ability to delivery on performance goals,” according to the guidebook.

“It’s like the early days of HMOs where there’s not a standard product so it’s hard to compare,” said Bill Kramer, executive director, national health policy at the Pacific Business Group on Health, a regional coalition of large employers. The San Francisco-based group released a toolkit in 2014, offering guidance on how to select, implement and utilize an ACO. “Our members have been disappointed by many of the ACOs being offered so there’s some degree of skepticism out there which is to be expected at the early stages of new products. Because of that skeptimarch/april

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cism not a lot of have done direct contracting like Boeing. The ones that have are big with a lot of employees in one place. Direct purchasing is not likely to spread broadly but we can learn from what Boeing did to get great value.”

Employers seem wary of adopting ACOs, but they are embracing centers of excellence, according to the annual “Best Practices in Health Care Employer Survey” by Willis Towers Watson. In 2016, 45 percent of employers offered employees access to COEs for specialty services, up from 47 percent the previous year, and another 32 percent plan to do so in 2018, according to the report.

Pioneers of this model, like giant retailers Wal-Mart and Lowe’s, inspired the PBGH to launch a national network of COEs in 2014. The network, called the Employers Centers of Excellence, focuses on elective procedures, including hip, knee and joint replacement surgeries. It offers business group members access to four clinics across the United States: Virginia Mason Medical Center in Seattle; Mercy Hospital in Springfield, Missouri; Kaiser Permanente in Irvine, California; and Johns Hopkins Bayview Medical Center in Baltimore.

The home improvement chain reported $1.6 million in savings for total joint replacement care in 2014, according to a company spokesperson.

Employers are watching these efforts closely as they try to understand how value-based health care can help them manage costs and improve employee health, according to Julie Stone, a consultant at Willis Towers Watson.

“There’s wide variation on what is value-based health care,” she said. “Employers are trying to understand what’s substantive and what’s superficial and where there really is quality improvement. Are they willing to make choices for vendor selections that could seem disruptive to employees — like narrow networks? They are looking for evidence.”

Stone urges employers to examine their culture and HR goals to make sure that a value-based approach supports them. If they decide to proceed, employee communication will be critical in any program’s success, she said.

“To move the needle on value-based initiatives you need to invest the time in education so they understand why you’re making a change and how individual employees will benefit from it,” Stone said.

Another hurdle for employers eyeing a value-based approach is the rapid growth of high deductible health plans paired with health savings accounts. They are incompatible with a value-based approach, according to Mark Fendrick, director of the Center for Value-based Insurance Design at the University of Michigan.

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You’re Sick?

Go Home!

Managers aren’t mom. But they can do a lot to keep their teams healthy. That starts with assuring people that it’s OK to call in sick.

BY BRANDI BRITTON

A

n IT guy at a San Francisco tech startup comes to work looking like death warmed over near the end of flu season. He is visibly ill and sweating. Unfortunately, he’s also responsible for installing vital software to everyone’s computers in the office and doesn’t want to take off sick in the middle of the upgrade.

His colleagues beg him to go home, telling him they’ll be OK. Everyone is overreacting, he says, and pretends

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to lick their keyboards and cough on everything.

The upgrade continues despite his illness and soon people are calling in sick. All told, 20 percent of the workforce was out sick for multiple days; a few had to be hospitalized.

He is confronted with this; his response:They’re whining.

This true story unfortunately isn’t that uncommon. Even though 82 percent of HR managers in a recent study by OfficeTeam said their company encourages staff to stay home when they’re sick, 85 percent of workers in the same survey announced that they have gone to the office while sick anyway.

The takeaway? If managers want to keep their teams healthy, they’ve got make the message a lot clearer, and also practice what they preach.

According to that same survey, people say they work while sick because they feel well enough to work and they

recalled a time when a colleague came into work with a scratchy throat. “As soon as everyone found out his kids had strep, our manager sent him home.” Not every boss reacts so well, though. Bissot was stunned at the story about the office epidemic at the San Francisco tech startup and said, “Shame on that manager. I would have said, ‘Here’s a mask and gloves, now teach me how to do what you need to do so you can go home.’ ” Managers can avoid having to take a forceful stand against sick colleagues by making it 100 percent clear it’s OK for anyone to be out sick.“Deadlines are deadlines, but employees’ health is also important,” Oyler said. “You can’t make employees feel guilty. If an employee wakes up sick, there should be no doubt in their mind that they should stay home.”

THERE’S NO SUCH THING AS EMPHASIZING IT TOO MANY TIMES: “STAY HOME IF YOU’RE SICK” IS A MESSAGE THAT EMPLOYEES NEED TO HEAR AGAIN AND AGAIN.

Companies can do a lot to encourage wellness in the workplace. Influenza costs the American economy $87 billion in lost productivity each year, but only about half of Americans get vaccinated, according to the Centers for Disease Control and Prevention.

Getting vaccinated is the No. 1 way to prevent flu, according to the CDC. It’s especially important for pregnant women, senior citizens and people with asthma, diabetes or certain other immune-compromising conditions, as they’re at higher risk for flu-related complications.

The CDC recommends hosting a flu vaccination clinic in the workplace to provide shots at low cost or no cost.

That makes it as easy as possible for employees to protect themselves and check off that annual task from their to-do lists.

Bissot’s company opens up its flu vaccine clinic to family and friends of employees as well. “I think inviting the whole family in is a great idea, because if the kids are sick,

don’t want to fall behind.

It’s tricky to determine whether a person who thinks they don’t need to call in sick is, in fact, right.When people have been sick and are on the mend again, they might still sound terrible but feel much better. But conversely, people are often contagious a few days before they start exhibiting symptoms. “It’s those days when they’re still coughing but their fever has broken that an employee might think, ‘I’m lethargic, but if I go ahead and drive in, I could get my work done,’ ” said Claire Bissot, managing director of CBIZ HR Services.

Not having sick days, saving sick time in case they need it later, and not wanting to burden co-workers with extra work were other common survey responses. “A lot of times, people feel guilty about making colleagues take up the slack for work they’ve left behind,” said HR consultant Arquella Hargrove of Meta Training and Consulting in Houston. Whatever the reason, as Lisa Oyler, HR director at Access Development Corp. in Salt Lake City points out, workers would be much better served taking real time off to recuperate fully. “If you take care of yourself, you’re going to get better quicker.”

Again, it’s not just about the worker but also their colleagues. “When you’re contagious, think about your community and stay home.” Oyler said. When employees don’t heed this advice, management needs to intervene. Oyler 40

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Prevention Plans

When FMLA Kicks In Generally, someone who comes down with a bad cold or the flu needs just a few days at home to recover and rest.

But if the illness leads to incapacitation for at least three consecutive days and requires ongoing medical care or hospitalization, employees’ absences could be covered by the Family and Medical Leave Act. Employees with compromised immune systems, pregnant women and the elderly are more at risk of complications, such as pneumonia, from illnesses.

FMLA could also potentially apply to a co-worker caring for a child or parent suffering from complications.

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the parents stay home sick,” she said.

There’s no such thing as emphasizing it too many times: “Stay home if you’re sick” is a message that employees need to hear again and again.“HR can communicate it but it doesn’t really mean anything unless employees hear it from their managers,” Oyler said.

Posting fliers encouraging thorough hand-washing and healthy sneezing hygiene can help.

“The more places you remind people to wash their hands and use hand sanitizer, the better off you are,” Bissot said.“During this season, you can make a fun gift out of it,” she added. “You can print a reminder and deliver it to everyone with tissues and two Emergen-Cs to raise awareness.” She recommends that companies buy hand sanitizer, disinfecting wipes and facial tissues in bulk to make them

IT’S SAFE TO ASSUME A FEW FOLKS WILL GET SICK AT ANY GIVEN TIME. MANAGERS SHOULD KNOW IN ADVANCE WHAT RESOURCES ARE AT THEIR DISPOSAL. easily accessible in the office.

Beyond influenza, diseases such as norovirus can spread like wildfire in a workplace. Often described colloquially as “stomach flu” or “food poisoning,” the gastrointestinal malady is highly infectious and spread both by direct contact and through the air.

Knowing that germs can live on hard surfaces for up to 72 hours, Bissot recommends talking to the office’s cleaning crew to make sure they are sanitizing doorknobs, kitchen appliances and vending machine buttons. “It may cost the company a little extra,” Bissot said, “But one hour of a cleaning crew compared to having seven to 10 people out of every 50 sick is worth it.”

Staying Flexible It’s one thing for a staff member to come to work sick to avoid falling behind, but managers should also be aware of employees’ economic reasons for working while sick. “Nonexempt people might not be paid for sick days, so if you have someone that really needs to be paid and be working, they’re going to come sick,” Hargrove said. The same goes for people who have run out of days in their PTO banks. She advises managers to be as flexible as they can to keep infectious workers out of the office. “If they come in and you have to send them home, maybe you can allow them to make up that time in the same payroll period.”

Allowing people for whom it’s practical to work from home to do so is one option to get teams through conta42

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When to Call in Sick Sometimes it can be tough for a person to determine whether they’re too sick to work. This list is a good guide to deciding when a person absolutely should stay home: • If you’re seriously sneezing and coughing. In addition to disturbing your co-workers, this is how viruses spread.

• If you have chills, fatigue and body aches. These are early signs of the flu, and you are often contagious a day before you have symptoms.

• If you have a fever. A high temperature signals that your body is fighting something off and that you need to rest.

• If you are vomiting or have diarrhea. Things like food poisoning and 24-hour bugs require rest and lots of fluids.

• If you’re otherwise contagious. Anyone with a condition such as pinkeye or staph should absolutely stay at home.

• If the medication you’re on affects your alertness.

You won’t be at your best to work, and driving could be dangerous.

— Brandi Britton

gious illnesses unscathed. “If they really need to be there, though, we can come up with a creative solution like setting them up in a private office on a critical day,” Oyler said.

It’s important for leaders to have a contingency plan for flu season and beyond. It’s safe to assume a few folks will get sick at any given time. Managers should know in advance what resources are at their disposal. “Be proactive and make sure there’s a backup plan, so if someone is out, someone else can pick up the slack,” Hargrove said. “If people can work from home, that’s fine. If you have someone out for too long, maybe bring someone in on a temporary basis.”

And managers should remember that employees will follow the boss’ lead: Supervisors need to be willing to call in sick themselves.

“It all starts with managers,” Bissot says. “You can’t try to enforce a rule when you aren’t following it yourself. If you contaminate other people, you’ll just make things harder for yourself.”

Brandi Britton is a district president for OfficeTeam, a staffing service company based in the Bay Area. To comment, email editors@workforce.com.

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2017

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43

SECTOR REPORT

C o r p o r a t e We l l n e s s P r o v i d e r s

Workplace Wellness Programs Continue Healthy Ascent

By Sarah Fister Gale

W

ellness programs have been gaining popularity as a way to attract top talent with the potential to lower health care costs through healthy living. Larger companies in particular have embraced this trend, with 60 percent providing comprehensive programs including cash incentives, gamified challenges and custom programming.

It’s a natural extension of health benefits programming and a desire to create a more productive and engaged workforce, said Michael Maniccia, specialist leader for Deloitte. “You can’t have an optimal health strategy if you are not paying attention to healthy living and avoiding risky behavior.”

Most organizations begin their wellness offerings with lowcost easy-to-implement tools like health surveys to identify risks, seminars to address certain behaviors, and weight loss or exercise challenges. Larger companies with more resources may offer on-site amenities like gyms, classes and healthy cafeteria menu options, while smaller companies may cover the cost of gym memberships, or rely on low or no-cost benefits provided through their conventional health care benefits.

Wearables like Fitbits and Jawbones are also gaining popularity as a way to engage employees in wellness offerings and

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THE CHALLENGES: STILL A PATCHWORK APPROACH This focus on wellness as a cultural issue is also important because it can be difficult to prove the bottom line impact of wellness. “Studies show a neutral to slightly positive reduction in medical costs,” according to Katherine Johnston of GWI. Though she pointed to a recent study from the Health Enhancement Research Organization that shows a distinct correlation between comprehensive wellness programs and corporate stock performance over the course of six years. “It can also be used to attract customers and drive employee retention,” she said.

Along with the challenge of measuring financial impact, the wellness marketplace is also still very piecemeal, which can be frustrating, especially for big companies. “Large employers like to have a single source for all of their programs, that is not happening,” said Heinen. It’s forcing them to cobble together a variety of best-in-class programs, and to manage them individually, which takes time and resources, and can be more difficult to promote to the workforce. Though she noted that some vendors are beginning to offer single site management

OF EMPLOYERS PLAN TO CONTINUE OR EXPAND WELL-BEING PROGRAMS IN THE NEXT 3-5 YEARS

drive collaboration through team challenges and gamification, said Ophelia Yeung, senior consultant at the Global Wellness Institute, or GWI, in Washington, D.C. “It’s a trend that is specifically being used to attract millennials,” she said.

Along with adding more programs, the scope of wellness has continued to evolve.The menu of options has been steadily expanding beyond physical fitness, said LuAnne Heinen, vice president of the National Business Group on Health in Washington, D.C.“The biggest trend we see is that companies don’t think of wellness as a single program anymore,” she said.

“It’s becoming part of the culture of the organization.”

44

This has lead many companies to expand their offerings to support emotional and financial well-being, with things like stress management tools and financial planning seminars.

“Leading companies are looking at wellness — or well-being — as whatever employees need to bring their best selves to work,” Heinen said.

Though for companies that want to be perceived as having a wellness-focused culture, they have to do more than simply offering more programs.The leadership team has to champion wellness as a company value, for employees to embrace the programs, she said. “If everyone is overworked and the boss is mean, it doesn’t matter how many free yoga classes you offer, they will be afraid to take time off to use it.”

CORPORATE WELLNESS continued on page 49 march/april

2017

The Health of

Wellness

HOT LIST Corporate Wellness Providers Listed alphabetically; compiled by Nidhi Madhavan; editors@workforce.com

Company Name & Web Address CORPORATE WELLNESS PARTNERS cwpil.com

FITBIT INC. fitbit.com/group-health

Percent of business representing corporate wellness

100%

Would not disclose

Number of corporate clients

40

1,300*

Number of employees served by programs

Types of wellness programs offered

Notable clients

3,000

Occupational health; biometric screenings; diabetes education/awareness; flu vaccines; CWP Challenge

Waste Management; NRG; Lakeside Transportation

Would not disclose

Fitbit activity trackers; software and services to deliver corporate wellness; weight management; clinical research; insurance programs

Target; SAP; New York Life; Pitney Bowes; Emory University and Emory Healthcare Cintas; Dell; General Motors; Huron Consulting Group; Schneider Electric; Maui Jim Inc.; David’s Bridal

INTERACTIVE HEALTH interactivehealthinc.com

100%

3,000

1 million

Clinically based, fully integrated wellness programs that focus on employees’ total well-being

LIMEADE limeade.com

100%

200

2.4 million

Whole-person well-being; smart-hub technology; organizational support

Kohl’s; USAA; Kellogg’s; state of Washington; Kindred Healthcare

MARINO WELLNESS marinowellness.com

100%

55

22,000

Office massage; meditation; fitness & health education programming

TOMS; CBRE; Fullscreen; Dollar Shave Club; Boingo Wireless Advocate Health Care; Domino’s; Dr Pepper Snapple Group; PSEG; Yum Brands

Would not disclose

RETROFIT INC. retrofitme.com

80%

150

100,000

Weight management; disease prevention; diabetes prevention

US CORPORATE WELLNESS INC. uscorporatewellness. com

100%

100

35,000

URAC accredited comprehensive wellness programs; personalized coaching

VIRGIN PULSE virginpulse.com

100%

2,200

2.4 million

Employee well-being technology solutions

WELLRIGHT wellright.com

100%

120

60,000

Nutrition; mental health; physical fitness; financial health

Morton Salt; BP; Ochsner Health System; GeorgiaPacific; SAIF Corp.

Would not disclose

Note: Corporate Health Partners and Vitality did not respond to requests for information by deadline. *Organizations that used Fitbit as part of their wellness initiatives in 2016.

Source: Companies march/april

2017

w o r k f o r c e . c o m | Workƒorce

45

SECTOR REPORT

Health Insurers

The Mostly Ups — and Downs — of Health Care Costs

By Sarah Fister Gale

I

t will come as no surprise that cost continues to be the driving issue for employer-sponsored health insurance programs.

Even though premiums only rose a seemingly modest 5 percent in 2016, that rate outstrips inflation and wage increases and is piled onto the previous years of constant increases, which continue to threaten the affordability of entire health care systems.

“When costs go up you only have a handful of options: get workers to pay more, change your network or reduce the scope of benefits,” said Matthew Rae, senior health policy analyst at the Henry J. Kaiser Family Foundation in Washington, D.C. While the percent of premiums paid by employees has remained roughly the same for the past decade, at about 30 percent, their costs are going up in other ways, he said.The biggest example is the cost of deductibles, which has gone up seven times faster than the cost of premiums. “It means employees are paying a lot more money to receive the same level of care.”

In 2017, 84 percent of larger employers will offer at least one consumer-directed health care plan, or CDHP, which will usually have high deductibles, and more than a third will offer this as their only insurance option, according to a survey from the National Business Group on Health in Washington, D.C. Its one way employees are shouldering the brunt of the excessive cost of care.

In 2016, the average annual premiums for employer-sponsored health insurance were

$6,435 $18,142 for single coverage

for family coverage

Still, companies aren’t foisting all the added risk and cost onto employees. They are increasingly looking for innovative ways to mitigate increases for themselves and their employees, while ensuring they still have access to the necessary health care. These strategies include incentivizing employees for using high-performing preferred networks, taking advantage of telemedicine services, and providing them greater access to centers of excellence for complicated and specialized care, said Steve Wojcik, vice president of public policy for NBGH. Wojcik has even seen companies provide travel and living expenses for employees to visit centers of excellence because

46

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they provide better value in the long run. “There is growing interest in encouraging enrollees to choose providers that are deemed high performing on efficiency and quality measures as a cost management strategy,” he said.

Another area of concern for employers is the high cost of specialty pharmaceuticals, which are used to treat chronic, serious, or life-threatening conditions and can cost thousands a month.

“It is the first time we have seen specialty pharma top the list of cost drivers for employers,” Wojcik said. In response, many are taking advantage of specialty tiers within the pharmacy plan design, and requiring certain drugs only be accessed through specific pharmacies. “Nearly all employers have implemented some pharmacy management techniques into their pharmacy benefits to help manage these costs,” he said. Employers are also beginning to consider defined contribution programs that provide employees with cash to spend as they want, as a way to curb costs.“We haven’t seen a big move in this direction yet, but employers are thinking about it.”

Playing Monopoly On the vendor side, recent attempted acquisitions between Aetna and Humana and Anthem and Cigna — which would drop the number of major health insurance providers from five to three — could have further implications on costs and plan options. However the mergers are still uncertain. In October, the Justice Department sued to block the two deals arguing they would reduce competition and drive health care costs higher; rulings are expected early this year.“There will be a lot of uncertainty in the marketplace as these mergers play out,” Rae said.

Regardless, none of the current cost challenges are going away anytime soon. For larger companies at least, a quality health insurance program that includes dental and vision is a minimal requirement if they want to attract and retain good talent.

“The key now is to engage employees in the health insurance program, figure out what they want, and provide them with the tools and guidance to navigate their health care options,” Wojcik said. He encourages companies to take advantage of search capabilities, as well as coaching services provided by vendors to help employees navigate their costs and options, he said. “These are complex decisions and there is no substitute for human support.”

Sarah Fister Gale is a freelance writer based in the Chicago area. To comment, email editors@workforce.com.

march/april

2017

The Health of

Wellness

HOT LIST Health Insurers Listed alphabetically; compiled by Nidhi Madhavan; editors@workforce.com Company Name & Web Address

Total health care revenue for the most recent 12 months

Total number of medical members

Number of members in employer-sponsored plans

AETNA aetna.com

$59.7 billion

23.1 million*

Would not disclose

CIGNA* cigna.com

$29.9 billion

15 million

14.2 million

Would not disclose

15 million

12 million

HUMANA INC.** humana.com

$54.9 billion

14.2 million

4.7 million

UNITEDHEALTHCARE uhc.com

$157.1 billion

48 million

27.6 million

HEALTH CARE SERVICE CORP.* hcsc.com

*Cigna and Health Care Service Corp. did not release 2016 data by deadline. 2015 statistics are listed. **As of October 2016 Note: Anthem, Assurant, Highmark and Kaiser Permanente did not respond to requests for information.

Source: Companies

HOT LIST Vision Insurers Listed alphabetically; compiled by Nidhi Madhavan; editors@workforce.com Number of employees and dependents covered by employer-sponsored plans

Number of client companies using these plans

Revenue from these plans for the most recent four quarters

EYEMED VISION CARE eyemed.com

47 million

37,000

Would not disclose

THE GUARDIAN LIFE INSURANCE COMPANY OF AMERICA guardianlife.com

3.2 million

39,296

$205 million

HUMANA INC. humana.com

1.9 million

29,000 employer groups

$54.9 billion*

Company Name & Web Address

*Total consolidated revenue as of third quarter of 2016.

Notes: Metlife Vision, Principal Financial Group, VSP Vision Care, Kaiser Permanente and Davis Vision did not respond to requests for information. Unum announced Jan. 11 that it is offering vision coverage. For our Hot List of Dental Insurers, visit: Workforce.com/DentalInsurers Source: Companies march/april

2017

w o r k f o r c e . c o m | WorkĆ’orce

47

WELLNESS continued from page 33 component of workplace wellness is education.

“The missing element of essentially every wellness program is employee education,” said Lewis. Many people know to avoid sugar if they’re trying to lose weight but aren’t aware of how much sugar “healthy” food like granola bars have, he noted as an example.

They’ll see the product in the health food aisle and assume it’s good for them without knowing what they’re putting in their bodies.

Regulations also may play a larger role in the future, said CBIZ’s Noll. There is little oversight in the wellness industry. Just two organizations, the National Committee of Quality Assurance and the Corporate Health and Wellness Association, certify wellness providers, and fewer than 30 vendors are certified, she noted.

At this point there isn’t a connection between certification and vendor quality, Noll said. But employers may see third-party certification as something that adds a comfort level to their relationship with the vendor. Likewise, vendors may see it as a way to differentiate themselves from the competition.

Incentives also will play a less important role, said Patty Curran, principal for the national practices at Xerox HR Services.

“The heyday of incentives is probably passed and people are finding that incentives get people’s attention in some things and work in some parts of the wellness program to get people engaged, but for long-term sustainability, they’re not delivering,” she said.

A large trucking company she worked with offered the incentive of joining a raffle for NASCAR tickets, which doubled the number of participants in the wellness program. It worked in the short term, but she said in the long term interest in wellness faded. Employers have to be more focused on communicating the value of the program and educating employees so they can change behavior for themselves.

Lewis said there is a need for change in how some vendors operate. Although there are wellness programs he supports that don’t harm employees, there are others that promote unhealthy behavior.

He referenced the Employee Health Program Code of Conduct created on LinkedIn in August 2016. Vendors can publish on their websites that they officially endorse the code, which acts as kind of a Hippocratic oath. They can promise and make a point to not fabricate outcomes or endorse practices that harm employees.

“This code of conduct has got to be the thing for 2017,” said Lewis. “How can you have an industry if vendors aren’t willing to say, ‘First do no harm?’ ”

VALUE-BASED continued from page 37 Current Internal Revenue Service regulations cover certain preventive services before the deductible is met, however many value-based services used to manage chronic illnesses are not covered, according to Fendrick. In July 2016, the House of Representatives introduced a bill that allows a health plan with no deductible for chronic disease management to be treated as a high-deductible health plan for purposes of health savings account eligibility requirements.

In the meantime, value-based health care is growing in the public sector with states such as Oregon and Vermont and the federal Medicare and Medicaid programs embracing the concept. In January,Vermont became the first state in the nation to move to an all-payer ACO, covering Medicare, Medicaid and all commercial payers who are required to participate.

Also this year, the Centers for Medicare and Medicaid Services launched a Medicare Advantage plan that uses a value-based approach by lowering out-ofpocket costs for specified services. Called the Medicare Advantage Value-based Insurance Design Model, it is a five-year demonstration program that will run in Arizona, Indiana, Iowa, Massachusetts, Oregon, Pennsylvania and Tennessee. Starting in 2018, CMS will also test the model in Alabama, Michigan and Texas.

The model focuses on Medicare Advantage members who have diabetes, congestive heart failure, chronic obstructive pulmonary disease, past stroke, hypertension, coronary artery disease or mood disorders. Beginning in 2018, CMS will also allow benefits for enrollees with dementia and rheumatoid arthritis.

And in December, former President Barack Obama signed a 2017 bill calling for a $619 million pilot program to test the feasibility of incorporating value-based design in TRICARE, the health care program of the Department of Defense.

Kramer of the PBGH is disappointed that private employers have been slower to adopt value-based principles, but he is hopeful that they will catch on.

“There’s no question that we need better value-based purchasing tools and wider adoption of value-based strategies,” he said. “It appears that costs are beginning to increase more rapidly again and employers feel a tremendous sense of urgency to make sure their benefit dollars are being spent wisely. I would expect to see a push for value-based purchasing strategies, not just alternative payment models, like bundled payments and ACOs, but also for things that push the delivery system to change, like new care models. We have a lot of work to do. We need to keep our foot on the gas.”

Andie Burjek is a Workforce associate editor. To comment, email editors@workforce.com.

Rita Pyrillis is a freelance writer in the Chicago area. To comment, email editors@workforce.com.

A Push for Certification

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CORPORATE WELLNESS continued from page 44 platforms for multiple wellness offerings, including Jiff, which was acquired in January by Castlight Health, UnitedHealthcare’s Rally, and Mobile Health Consumer. They aren’t perfect solutions yet, she said, and they may only manage a subset of a company’s wellness programs — but the industry is definitely heading in that direction.

ADVICE: SET GOALS, DRIVE ENGAGEMENT To ensure companies get the most value from their wellness investments, Maniccia encourages HR and the leadership team to define what they expect to get from these programs, and how they will measure that impact.

It might be participation rates, increased em-

ployee engagement, or just a sense of a healthier workforce. “The goals you set today will shape the programs you implement down the line,” he said.

Companies also need to keep their programs fresh and let people know what’s available, he said. “If you want health and wellness to be part of your culture, you have to drive engagement,” he said. “It doesn’t matter how good the program is, if no one uses it won’t add value to the organization.”

Sarah Fister Gale is a freelance writer living in the Chicago area. To comment, email editors@ workforce.com.

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49

LAST WORD

Rick Bell

MENDING FENCES COULD BE JACKSON’S LEGACY

M

aybe it’s just me but there’s been a lot of talk lately about legacies.

Newly minted private citizen Barack Obama’s legacy as the 44th president is being etched as we speak; even before the Super Bowl kicked off, pundits pondered the legacies of Patriots quarterback Tom Brady and head coach Bill Belichick.

We have legacy companies, legacy cars and legacy comic book heroes. Some are already attempting to record Donald Trump’s presidential legacy. I understand the rush to judgment but I’m sorry, six weeks in office does not warrant legacy status.

JACKSON’S PENDING RETIREMENT OPENS THE DOOR TO REACH OUT AND REPAIR THE FRACTURED ASSOCIATION WITH HRCI. Six years, however, gives us something to work with.

Add in a recent resignation announcement that takes effect at the end of the year and we have a legacy in the making to deliberate.

Henry “Hank” Jackson is leaving the Society for Human Resource Management on Dec. 31, after six years at the helm of the 289,000-member association. Of the six CEOs who have headed the 69-year-old organization, Jackson’s legacy is shaping up to be the most noteworthy considering that no previous SHRM leader presided as a dissident group calling themselves SHRM Members for Transparency arose and actively campaigned against numerous Jackson initiatives.

Still, Jackson will exit with a healthy list of achievements.

For starters, the organization’s profile has never been higher. Membership continues its ascent and SHRM’s annual conference keeps setting attendance records.

Jackson broke the color barrier as SHRM’s first minority leader.

He also was SHRM’s first CEO without a strong HR background. That past as a certified public accountant irked traditionalists who felt SHRM’s leader should be steeped in HR doctrine.

Jackson also knows what concerns activists as well as rank-and-file HR pros. Early on in his tenure he was embroiled in controversy regarding board members’ lack of HR credentials and put the kibosh on the tradition of complimentary SHRM conference registrations to past leaders and “distinguished guests.”

By far SHRM’s most controversial — and expensive — initiative under Jackson was the creation of its own credentialing program. Launched in 2014, the introduction of the SHRM-CP and SHRM-SCP certificates shocked the HR 50

Workƒorce | w o r k f o r c e . c o m

world as SHRM challenged the industry standards set by the HR Certification Institute — an organization SHRM helped create in the early 1970s. SHRM literally pushed HRCI out the door of their shared offices in what some saw as a power play and money grab to become the go-to source for HR credentialing.

The move cost SHRM millions of dollars to launch.

True, thousands have attained SHRM certification, yet some HR leaders still question the initiative’s value. Said one high-profile HR executive in an email exchange regarding SHRM’s program: “I received the SHRM certification through the tutorial option SHRM provided for people who already had an HRCI certification. The tutorial showed us examples of questions from the actual SHRM certification exam and oriented us to how their system would work.What I found was that the questions were not different from the HRCI questions and were easily answered by knowing which competency the question was trying to address, which is completely unrealistic for on-the-job situations.

“Based on my experience with it, the SHRM certification system currently does not differentiate between the HR professional who excels at understanding the business as a whole and the one who doesn’t.”

If Jackson was staking his legacy on the certification program — it certainly seems that way — it’s safe to say the jury is still out on the program’s success among HR pros.

Given that it’s unlikely SHRM will abandon credentialing under a new administration post-Jackson, his pending retirement opens the door to reach out and repair its fractured association with HRCI, which weathered SHRM’s initial assault and is not going away any time soon. Jackson’s final months on the job could be spent engineering a way for both organizations to work together in a way that benefits all HR professionals.

The SHRM Members for Transparency has largely shrunk into the shadows since its activism earlier this decade. As the search for Jackson’s replacement continues, they have an opportunity to re-emerge and become a fresh, relevant voice, urging the next CEO to implement organizational clarity and transparency.

Jackson also can cement a more positive, enduring legacy by mending the broken relationships that remain with transparency group members as well as other HR professionals who feel that SHRM abandoned the needs of its broad HR membership.

Because really, isn’t that who Jackson and the association must serve in the first place?

Rick Bell is Workforce’s managing editor. To comment, email editors@workforce.com.

march/april

2017

YOUR PEOPLE matter most to the success of your business.

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PLEASE JOIN US AT ONE OF THESE THOUGHT LEADERSHIP EVENTS NEAR YOU. Visit our HR Workshop website to learn more about the educational and fun events Ultimate Software is hosting and participating in this year. Go to www.ultimatesoftware.com/events2017 for details.

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H R WORKSHOP Investing in your career For more information about any of our Events and to register, go to www.ultimatesoftware.com/events2017

TRADESHOWS

Please visit our booth at these national tradeshows: • APA Congress & Expo: May 17-19, Orlando • Society for Human Resource Management Conference & Expo: June 18-20, New Orleans • ASHHRA Conference & Expo: September 18-19, Seattle • HR Technology Conference & Expo: October 10-12, Las Vegas Dates and locations are subject to change.

ULTIMATESOFTWARE.COM/EVENTS2017 HR | PAYROLL | TALENT MANAGEMENT

“I am ready. Because I am SHRM-certified.”

SPRING EXAM WINDOW: May 1 - July 15 APPLICATION DEADLINE: March 24 LATE APPLICATION DEADLINE: April 14 NIOR CER SE

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Join the more than 96,000 professionals who have earned their SHRM certification, and prove that you’re ready for the future of HR.

Exam applications now being accepted!

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SHRM certification is a game-changer because it’s competencybased, testing not only your technical HR knowledge but also the behaviors needed to effectively implement that knowledge.

It’s not just about “what” you know but also “how” you apply what you know. The “how” is what makes the difference. SHRM certification is what sets you apart.

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Learn more: shrmcertification.org/workforce 17-0081