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Small Business Owners, Employees Sick of Rising Health Care Rates

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With just about everything going up in price these days, it should not come as a surprise that health care rates for both employers and workers have been on a steep upward trend in recent years.

According to a Kaiser Family Foundation/Health Research & Educational Trust 2011 Employer Health Benefits Survey released this fall, employers are putting more money toward their employees’ healthcare premiums than at any other time.

The survey, which interviewed close to 3.200 public and private firms with a minimum of two employees, notes that prices grew 9 percent over the past year. The premiums for family health care coverage have increased to an average of $15,073, with business owners covering more than $10,000 of the cost.

Some highlights from the survey:

  • Six-in-10 companies made health benefits available to their employees in 2011, a sharp contrast from the nearly seven-in-10 who did so just a year earlier;
    • Employees pay $4,129 toward the premium, while employers cover the remaining $10,944;
    • Single policy health coverage costs also grew some 8 percent, coming in at $5.429 yearly. As a result of this coverage, employees pay $921 toward the plan;
    • Overall, PPOs are much more common plan types, enrolling 55 percent of those covered;
    • Seventeen percent of those covered workers are enrolled in an HMO, while 10 percent have a POS plan, and 1 percent utilize a conventional plan;
    • The majority of covered workers have to deal with added expenses when using health care services. A large number of workers with PPOs (81 percent) and POS set ups (69 percent) deal with a general annual deductible for single coverage that must be taken care of prior to all or the majority of services being reimbursed through the plan;
    • In all, 31% of covered workers have a policy with a deductible of at least $1,000 for single coverage, a major increase from the 22 percent such reported in 2009;
    • Most employees also are required to pay some of the expense of doctor office visits. Approximately 75 percent of covered workers’ pay a co-payment toward office visits for a primary care doctor or a specialist physician, along with any general annual deductible a plan may have.

According to a spokesperson for Kaiser, “This year’s nine percent increase in premiums is especially painful for workers and employers struggling through a weak recovery.”

Meantime, according to a report from Aon Hewitt, employees nationwide who have healthcare coverage can figure on seeing a cost hike of seven percent in the coming year.

So, how can both small businesses and employees lessen the chances of needing some of this healthcare in the first place? Among the things to consider are:

  • Stay healthy and active– More and more companies are instituting comprehensive wellness programs that involve disease management, offering cancer screenings, flu shots and smoking-cessation sessions. Some businesses also offer discounts or even free admission to local fitness centers in order for employees to stay in a good shape;
  • Give them what they want – While some plans have requirements as to what coverage and at what cost it is available, sit down with your human resources individual or team and see what your employees are most interested in. By doing so, you can potentially eliminate some of the more costly options if they are not being used;
  • Look into health savings accounts – More businesses are giving a second look to HAS’s. The accounts are tax-exempt, used to cover a number of medical costs;
  • Get a number of quotes – Small business employers are advised to shop around and obtain a variety of quotes. Also, don’t settle on the first quote even if it sounds really good. By shopping around, you have the opportunity to get a good health care insurance product at a reasonable price.

As 2012 comes to light in a little over a month, make sure both you and your employees have a health care plan in place that is both affordable and provides solid coverage.

Photo credit: businessnewsdaily.com

Dave Thomas, who covers among other subjects’ workers compensation, writes extensively for Business.com, an online resource destination for businesses of all sizes to research, find, and compare the products and services they need to run their businesses.

 

 

 

Is Not Giving Two Weeks’ Notice Cool When Quitting a Job?

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The days of individuals staying at one employer their entire lifetime are few and far between any longer.

Given factors like a struggling economy, people going back to school to further or change their careers, and employers downsizing many businesses, it is not uncommon for a professional to end up with four or five jobs by the time they slip into retirement.

For those individuals who decided that it is time for a career or job change within their present line of work, what is the proper protocol for leaving their current employer?

Some individuals believe it is of utmost importance to give two weeks’ notice so that no bridges are burned should they want a relationship with their present employer down the road.

Others, meantime, feel like two weeks is not necessary, given the fact that most employers will let go via layoff or fire someone on the spot, hence, not providing the employee with advanced notice.

When looking at this matter from the employee point of view, keep these factors in mind:

  • Would your employer do the same? – The answer to that question nine times out of 10 is no. Unless it is a matter of not renewing a contract and the employee is told so when it comes up for renewal, employers are not going to walk over to your cubicle or call you into their office and tell you they are firing you in two weeks. In many cases, you will have literally minutes to clean out your desk, gather your belongings and most likely not say goodbye to fellow workers;
  • Will you need this employer as a reference? – Even though many employees switching jobs already have their new job lined up before exiting their present one, they may want their soon to be ex-employer’s reference down the road. They may want to even do some part-time freelance work for the one they are leaving. By not giving two weeks’ notice, those chances pretty much go out the window;
  • Do you want to maintain office friendships – In some instances; you have gotten to be good friends with one or more co-workers in your present office. If you just up and leave for greener pastures, your co-worker or co-workers may view it as bailing on them and specifically that friendship you built if you don’t tell them ahead of time. Determine ahead of time how important your soon-to-be ex co-workers are to you when considering appropriate notice;
  • It really is a small world – Many employees would be surprised to learn how truly a small world it really is. The last thing you want is word getting around that you just up and left a job without proper notice. It may not hurt you now that you landed a new job, but it could down the road when you may be let go by this new company and find yourself job hunting again.

Speaking from experience, I’ve been on both sides of the coin here as far as how much notice I gave.

In my first full-time job out of college, one I was at for just under six years, I gave my employer a good six weeks’ notice because I wanted to have a smooth transition and I knew I was relocating on the other side of the country months ahead of time.

So, how did my employer repay me for doing a nice thing like that? After the first week or so, they had my replacement training under me, telling me several times if I didn’t like my new workload, work conditions etc. I was more than welcome to leave my job early since they had someone in place to replace me.

Needless to say, I never have nor ever would give an employer that much notice going forward.

In one part-time job, I had been told by my employer that certain things would happen following my training process. Needless to say, they never followed through on any of those promises.

Knowing things were not going to change, and knowing I would continue getting the run-around, I worked two weeks ahead of time so that my assignments both present and over the next two weeks were done, walked in one morning and cleaned out my desk, and left before anyone showed up.

I’m not saying it was the wrong or right way to do things, but at the time it felt like the decision I needed to make.

The bottom line is each employee has to weigh the matter at hand, determine how giving or not giving two weeks’ notice will impact them down the road, and go from there.

Yes, it seems like the right thing to always do, but in some cases, right doesn’t always win out.

Photo credit: jezebel.com

Dave Thomas, who has authored a number of articles regarding small business credit cards and commercial vehicle insurance writes extensively for Business.com, an online resource destination for businesses of all sizes to research, find, and compare the products and services they need to run their businesses.

Know How to Approach the Boss for a Raise?

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I have a friend who I’ve known for nearly two decades and I can say without a doubt that he’d give you the shirt off his back.

That being the case, there is one action, or I should say lack thereof on his part, that makes me shake my head.

Not only did he take a major pay cut several years ago, he’s afraid to ask his boss for a raise.

Now granted, we all know that times are tough and there remains much debate as to whether or not we’re headed for another recession. Still, a man has to eat and keep a roof over his head, so asking for a raise is something that should never be out of the question.

As it turns out, he and I have had this discussion numerous times and he continues to claim that he won’t get the raise, so why bother wasting his time. Okay, I know I need to keep my nose out of other individual’s business, but it pains me to a see a good friend give up the fight, if in fact he ever fought to begin with.

While there is a good chance knowing his boss he will not get the raise, what does it hurt to discuss it, especially since it has been several years since he saw an increase in his hourly rates?

This friend works as hard as anyone I know, and he certainly is not being properly compensated for his efforts. In essence, he is afraid that he’ll get the boot if he goes to his boss seeking a raise. While I respect and understand where he is coming from, it is something that I would handle differently.

That being said, how should you go about seeking a raise when in a similar situation?

Among the things to consider are:

  • What is a fair and reasonable request? – For many employees, they do not know what their value is to the company, including when and how to seek a raise. Ask around to people in comparable positions as to what they sought, do some online research as to what the typical salary is for your kind of work, etc. Most importantly, get a handle on the company’s financial picture and if now is the appropriate time to seek more money;
  • Rehearse your sales pitch – It is important to not wing it when talking to the boss regarding a raise. Just as you likely rehearsed your job interview, it is a good idea to prepare for the request to get a raise. If you have a trusted family member or friend who will give you an unbiased reaction, make your raise pitch to them and get feedback;
  • Take a look back at recent history – When it comes to getting a raise, timing is often the key to success. In the event the company suffered a financial setback recently or you had an issue with a co-worker that got around the office, don’t exactly go rushing in the boss’ door for a raise;
  • Document your achievements with the company – While many experts will say that it is best to wait at least a year after you’ve been hired to seek a raise that does not mean you can’t be compiling your achievements since you started your job. Without recording that you showed up for work on time for three months in a row, take note of any special accomplishments like spearheading a project, overseeing efforts to save the company money, etc. The achievements are good tools to use in your favor when you seek the salary increase;
  • Be prepared for possible rejection – Asking for a raise is a little bit like asking someone out on a date. You may come out a winner or you may go home rejected. There is typically a 50-50 chance you will get the raise, so don’t pout if the outcome is not good. The boss may just be delaying giving you a raise until things are a little better financially at the company, so don’t suddenly tail off on your workload etc. or office morale if the raise is denied this time around;
  • Show appreciation either way – Given the fact that 2011 remains an employer’s market, it is important to show appreciation to the boss for having the raise discussion in the first place. Companies are not obligated to give out raises on a regular basis, so appreciate them when they come along.

Asking for a raise is something that most employees equate with going to the dentist or having to spend time with their mother-in-law.

If you’re in the position where it is time to seek a raise, make it your job to handle it the right way so that your job is never placed in jeopardy.

Photo credit: ledgerlink.monster.com

Dave Thomas, who covers among other subjects’ background checks and business credit cards, writes extensively for Business.com, an online resource destination for businesses of all sizes to research, find, and compare the products and services they need to run their businesses.