Mold can wreak havoc on your home and lead to significant property damage and financial losses. Mold can also cause various health issues for you and other members of your household, potentially leading to medical complications and expenses down the road.

In addition to the various potentially harmful impacts of mold, these issues can arise from many different incidents or conditions.

March is Flood Awareness Month; now is the time to understand that even a tiny amount of water seeping into your home could easily lead to widespread mold growth. Learning various ways to protect your home and family from mold is essential.

When limiting the possibility of having mold issues in your home, consider the following strategies:

• Keep humidity levels in your home as low as possible, such as by using air conditioners and dehumidifiers.
• Emphasize airflow throughout your home by using fans and ensuring ventilation systems function properly.
• Inspect your home’s roof, walls and plumbing, and fix any cracks or leaks as soon as possible.
• Clean up any water damage, spills or other moisture promptly.
• Tear up any carpeting contaminated by floodwater or sewer water, or that cannot be dried out within 48 hours.
• Avoid having carpeted floors in areas prone to excess moisture, such as bathrooms and basements.

For more home maintenance and safety guidance, contact us today.

Cyber incidents—including data breaches, ransomware attacks and social engineering scams—have become increasingly prevalent over the past decade, impacting organizations of all sizes and industries. These incidents are only expected to become more damaging and devastating in the years ahead, making it difficult for organizations to recover. In fact, global cyber economy researcher and publisher Cybersecurity Ventures projected that the cost of cybercrime could surge to $10.5trillion by the end of 2025—more than tripling from $3 trillion in 2015. Considering these findings, it’s vital for employers to secure sufficient cyber insurance. Also known as cyber liability insurance, such coverage can help pay for a range of first- and third-party expenses (e.g., incident response and data recovery services, legal fees, lost income, reputational damage and regulatory defense costs) that may result from cyber incidents, thus mitigating the risk of large-scale financial losses when these events occur.

When a cyber incident strikes, it’s important for employers to know how to navigate the claims process and understand what their insurance may cover. In doing so, organizations can ensure a timely and cost-effective recovery, keeping related damage to a minimum. Although no two claims are the same and specific response measures may vary based on the nature of anincident and its associated losses, this article outlines four general steps for organizations to take amid the cyber insurance claims process.

Step #1: Notify important parties.

As soon as an organization identifies a potential cyber incident, whether it’s via threat detection software or an employee report, it should carefully assess the situation to determine the validity of the incident. Upon validation, the employer should swiftly execute their cyber incident response plan by contacting necessary parties (i.e., the local authorities, the cyber insurer and the broker) to kickstart the investigation and insurance claims process.

Notifying these parties is crucial for several reasons. Not only does it allow the organization to receive prompt assistance when a cyber incident occurs, but it may also be required to ensure coverage for the related losses. In particular, many cyber insurers mandate their policyholders to contact them immediately upon discovering an incident, typically before taking any other steps or incurring any additional costs, to maintain coverage. As such, failure to notify the insurer in a timely manner can expose the organization to possible complications in the claims process or even a denial of coverage. That’s why the employer should carefully review their policy to understand specific provisions regarding the discovery of a cyber incident and the required timeline for notification.

When it comes to notifying necessary parties, the organization should be prepared to provide in-depth information and resources regarding the overall scope and severity of the cyber incident. This will help the local authorities understand how to move forward with their investigation and give the cyber insurer and broker the details needed to streamline the claims process. Key information and resources may include a current narrative of events, documented proof of the incident and a calculation of associated losses. Because such information and resources can change as the incident develops, the organization should continue collecting details in real time and update necessary parties as needed.

Step #2: Coordinate with vendors.

After the employer notifies the necessary parties about the cyber incident, they should coordinate with various vendors to help remediate the situation and minimize related damage. Depending on the organization’s cyber insurance policy and particular preferences, it may select these vendors independently (as outlined in its cyber incident response plan) or obtain referrals from the insurer and broker. Therefore, the employer should be sure to communicate with the insurer and broker before moving forward with any vendors. In some cases, insurers may even require policyholders to receive explicit consent regarding vendor selections to prevent possible coverage exclusions. This is because some insurers have pre-negotiated rates with certain vendors, which can help minimize the costs incurred during claims. There are multiple vendors for the employer to consider, each playing a different role in handling the incident. Key vendors include the following:

• Legal counsel—An attorney who specializes in cybersecurity, also called a breach coach, can assist an organization in determining applicable data compliance standards for recording and reporting the loss or exposure of sensitive information. This attorney may also help the organization coordinate with other vendors and set up any necessary services (e.g., credit monitoring applications and call centers) for stakeholders or other individuals affected by the cyber incident.
• Forensic investigators—In addition to working with the local authorities, the employer can consult forensic investigators to look into the cyber incident further, identify the perpetrators and assist with data recovery. These investigators can also help the employer prepare and uphold the integrity of any digital evidence associated with the incident. Such evidence may be particularly useful amid any legal proceedings involving the incident.
• System recovery professionals—While forensic investigators can help the organization recuperate data impacted by the cyber incident, system recovery professionals can support the organization’s IT department as it works to restore any compromised networks, servers and technology. In turn, these professionals can ensure the organization resumes normal operations as quickly as possible, therefore reducing downtime and limiting lost income.
• Crisis communication experts—The employer can utilize crisis communication experts to adopt a plan for handling any public relations concerns related to the cyber incident. In other words, these experts can work with the organization to deliver appropriate post-incident communications to regulators, affected parties and the general public, thus helping the organization meet applicable breach notification requirements and minimize the risk of widespread reputational damage.

Step #3: Mitigate the incident and document associated expenses.

Upon coordinating with its selected vendors to fully mitigate the cyber incident, the organization should work closely with its broker and the insurer’s key representatives, namely the claims adjuster, to calculate the total expenses incurred amid the event and determine coverage capabilities. This entails keeping detailed records of all associated damage and restoration costs. Here are some important expense-related records for the organization to hold on to:

• Vendor invoices and statements of work (SOWs)—The employer should ask every vendor they coordinate with to provide detailed invoices and SOWs that summarize the work being performed, highlight daily progress on this work and break down each component of the final bill. Further, the employer should clearly distinguish which aspects of every bill pertain to restoration costs versus improvement expenses. This is a crucial step, as most cyber insurers will only offer coverage for restoring systems and operations to the status they were in prior to a cyber incident rather than enhancing these elements beyond their original state. Moreover, neglecting to separate such costs could cause difficulties and delays during the claims process, extending the overall recovery timeline and prolonging the final payout from the insurer.
• IT receipts—In addition to keeping vendor invoices and SOWs, the organization should maintain any documentation of IT purchases made throughout the recovery process. This may include the cost of repairing damaged systems or replacing hardware that couldn’t be recovered with comparable solutions. Receipts should be separated based on the nature of each purchase; those related to system restoration will likely receive coverage, whereas those associated with upgrades to the IT landscape (e.g., enhanced security software) may not. Additionally, the organization may find it useful to distinguish between purchases that provided permanent IT solutions (e.g., the replacement of corrupted devices) versus temporary fixes (e.g., the interim use of alternative technology to reduce operational downtime).
• Business interruption calculations—Depending on the specific details and severity of the cyber incident, the organization may incur minor or major business interruption expenses throughout the recovery process, especially relating to lost income. Because most organizations affected by cyber incidents are usually able to reinstate their key operations within a matter of days, cyber insurers often heavily scrutinize business interruption calculations and related expenses. In some cases, cyber insurers may even leverage forensic accountants to review these expenses further. As a result, it’s critical for the employer to consult their sales and operations teams to ensure accurate calculations and foster open communication with the insurer’s representatives to reach a positive outcome. The most valuable business interruption expenses for the organization to document include diminished production capabilities, operational inefficiencies caused by temporary workarounds, lost or canceled orders, permanent contract losses, and prolonged downtime that allowed customers or clients to purchase products and services from competitors.
• Other recorded expenses—The employer should record all remaining expenses incurred amid the cyber incident, such as temporarily elevated production and labor costs that helped make up for downtime. In the event that the incident prompted a lawsuit or attention from regulators, any additional legal fees (e.g., defense costs) and penalties should also be documented.

Altogether, keeping detailed documentation of all expenses related to the cyber incident can help the organization promote amore seamless claims process and confirm that the insurer’s representatives have the necessary resources to provide an accurate payout.

Step #4: Resolve the claim and determine key takeaways.

Finally, the employer should provide any additional information the insurer requests to help resolve the claim as quickly as possible. Upon receiving the final payout, the employer can review the cyber incident as a whole and identify key takeaways. This typically involves conducting a post-incident analysis. Such an analysis should focus on where the cyber incident originated; how it was detected; how effective the incident response plan was in handling this event; and the different technical, operational and financial impacts of the incident. Depending on the cyber incident’s origin and associated losses, it may also be worthwhile to evaluate whether any organizational failures or shortcomings played a role in the event.

The results of the post-incident analysis will guide the organization’s identification of cybersecurity weaknesses and its effort to fill possible gaps with bolstered defenses. Doing so is critical to help prevent future cyber incidents and minimize related expenses. Necessary adjustments may include modifying the cyber incident response plan, updating or introducing new software, and implementing stricter security policies. Based on the outcome of the claim, the employer may also want to consult their broker to determine whether any coverage adjustments are necessary to ensure ample protection for cyber incidents going forward.

Conclusion

By having a deeper understanding of the cyber insurance claims process, organizations can navigate potential incidents with ease and keep related losses under control. Contact us today for more risk management guidance and insurance solutions.

Insurers face challenges in ensuring adequate rates while navigating regulatory restrictions and competition. As a consumer, it’s essential to be knowledgeable about these factors and consider strategies for reducing
expenses without sacrificing coverage quality.

Auto insurance is an ongoing and nonnegotiable expense for drivers. The following are proven ways to help reduce these costs without compromising on necessary coverage:

Our agency is here to help you navigate the changing insurance market. Reach out to us today to learn more about how we can help you find the auto policy that’s right for you.

When properties are left idle or vacant, the risk of fire-related incidents increases. Therefore, implementing a comprehensive fire prevention strategy is crucial. This article explores essential fire prevention measures for idle and vacant properties to ensure the safety of the premises and minimize the risk of destructive fires.

Fire Prevention Measures

Businesses should consider the following fire prevention measures for their vacant and idle buildings:

• Keep sprinkler systems operational. It’s imperative to ensure sprinkler systems on the property remain in service. Regular inspections are key, including weekly recorded checks of sprinkler control valves to confirm they are locked in the open position. Additionally, fire extinguishers and other fire-protection equipment should be inspected weekly.
• Perform quarterly sprinkler system testing. Fire-protection system alarms, including sprinkler control valve and water-flow alarms, should be tested quarterly to verify their functionality.
• Conduct heat inspections. If the heating system is still functional in a vacant building, it should be inspected regularly to make sure everything is working properly to avoid a fire hazard.
• Maintain landscaping. Keep the property’s exterior well-maintained. This includes cutting grass to a height of 3 inches or less, clearing brush and weeds from around buildings and service equipment, and promptly removing any waste materials that can fuel fires.
• Secure hazardous operations and remove combustible materials. For operations involving flammable liquids or equipment, take precautions such as turning off electrical equipment and securing utilities that won’t be in use. Additionally, remove flammable chemicals and other combustible materials from the property when possible.
• Coordinate with the fire department. Invite the local fire department for a pre-fire planning session to establish emergency protocols in case of a fire. Ensure they are familiar with all operational sprinklers and alarms and provide them with access keys or designated meeting points for easy response during alarms.
• Contact law enforcement. Notify local police departments if a building is vacant. Doing so can allow law enforcement to monitor the property regularly and help deter arson and other crimes.
• Increase security measures. To deter potential vandals or intruders and prevent arson, make the property appear occupied. Maintain the exterior by mowing lawns, trimming shrubbery and removing snow. Add extra locks, lighting, alarms and fencing where necessary. Regular checks for signs of break-ins are essential.
• Prevent freeze-ups. Provide adequate heat to the vacant or idle building to prevent freezing of fire-protection equipment, such as water supply tanks and sprinklers.
• Inspect the premises. Ensure that regular inspections of the building, as well as the perimeter of the property, are performed to check for break-ins or other hazards. In some cases, hiring security firms to perform inspections may be appropriate.

Conclusion

By diligently following these fire prevention measures, property owners and managers can significantly reduce the fire risks associated with idle and vacant buildings to preserve both the structure and safety of their surrounding communities. Fire prevention remains a shared responsibility that calls for proactive planning and ongoing vigilance to protect properties from potential disasters.

For more risk management guidance, contact us today.

Vehicle crashes into buildings can result in severe property damage, which can lead to expensive repairs and business interruptions. In a worst-case scenario, such accidents can cause injuries or even fatalities. As a business owner, it is crucial to take proactive measures to protect your property from these incidents. This article aims to help you understand how to evaluate the risk of vehicle accidents to your property, implement protective measures, ensure regular maintenance and testing of barriers, and educate and train occupants to safeguard your business.

Assessing the Risk

Assessing the risk associated with your building is a critical first step in developing an effective safety strategy for business owners. This process involves a comprehensive evaluation of various factors that could pose potential risks to your property. Key factors to consider include the following:

• Building design—Identify potential vulnerabilities and areas where vehicles could pose a threat by examining the building’s design and layout. Look for weak and vulnerable building materials such as large windows or glass facades, unreinforced masonry or lightweight construction. Also, check for inadequate visibility caused by landscaping or other obstructions blocking the view of the building from the road as well as inadequate signage indicating the proximity of the building to the road.
• Proximity to roads—To minimize the risk of vehicle crashes, consider the proximity of your building to nearby roads, streets and highways. Evaluate the distance between your building and the road and the type of road. Buildings near busy roads or intersections face a higher risk of accidents. Assess the traffic volume and research historical accident data for your area.
• Proximity to parking lots—Buildings near parking lots or garages where vehicles frequently move in and out are at an increased risk. Drivers are frequently required to maneuver their vehicles in tight spaces, increasing the risk of misjudging distances or making mistakes.
• Traffic patterns—Consider the traffic patterns around your property. Watch out for intersections, sharp curves or turns and nearby school zones or pedestrian areas. These areas tend to have a higher incidence of accidents.
• Building use—The type of business or activity conducted can affect the risk level of your building. Factors to consider include foot traffic, property visibility and proximity to potential hazards (e.g., gas stations and intersections).

Implementing Protective Measures

To safeguard your building against vehicle crashes, you have various options at your disposal. Each choice comes with its own set of benefits, and its appropriateness depends on your specific needs and preferences. Examples of protective measures include the following:

• Bollards—Vertical bollards, which are made of steel, concrete or plastic, can be fixed or removable. They provide a reliable way to redirect or halt vehicles from colliding with buildings and pedestrians.
• Concrete barriers—Concrete barriers are highly effective at preventing vehicles from crashing into your building and can be used for temporary or permanent protection due to their durability and weight.
• Planters and decorative barriers—If aesthetics is a concern, you can select decorative planters or barriers that blend with your property for both beauty and protection.
• Fencing—Heavy-duty fencing can provide a level of protection. Combining heavy-duty fencing with bollards or barriers is even better, as it can provide an extra layer of security.
• Appropriate parking—Parking spaces situated directly in front of buildings can present a substantial risk. One of the most prevalent reasons for storefront crashes is pedal error. Consequently, it is advisable to minimize the presence of parking spaces near your building to reduce the likelihood of these incidents.

Maintenance and Testing

Maintaining and testing your protective barriers is essential to ensure they remain effective. Regular inspections and upkeep may help identify and address any issues. Here are some key considerations regarding maintenance:

• Regular inspections—Schedule routine inspections to check for wear and tear, damage or signs of deterioration.
• Testing procedures—Periodically test your protective barriers to verify their functionality. For example, conduct crash
  tests or vehicle impact simulations to ensure they perform as intended.
• Immediate repairs—If any damage or issues are identified during inspections, address them promptly to maintain the barrier’s integrity.

Educate and Train Building Occupants

Building protection is not solely the responsibility of the business owner; all occupants must be educated on safety measures and emergency procedures. Consider the following steps:

• Create an evacuation plan. Develop an evacuation plan that includes designated exit routes and assembly points in the event of a vehicle crash.
• Conduct safety drills. Regularly practice vehicle crash scenarios with your employees to ensure they know how to respond effectively.
• Raise awareness. Hold safety training sessions to educate employees on risks and the importance of following safety protocols.
• Provide emergency contact information. Ensure all occupants have access to emergency contact information, including local emergency services and building management.

Conclusion

Protecting your building from vehicle crashes is a crucial aspect of property management for business owners. To minimize the risk of costly accidents and ensure the safety of your employees and customers, it is important to assess the risk, implement effective barriers, maintain protective measures, and educate and train employees and occupants. Not only can you protect your property by investing in these measures, but you can also demonstrate your commitment to safety and responsible business practices.

Contact us today for more information.

The Consolidated Omnibus Budget Reconciliation Act (COBRA) is a federal law that provides for the temporary extension of employer-sponsored group health coverage for employees and their family members (qualified beneficiaries) in certain situations. COBRA coverage is available when qualifying events occur, such as termination of employment or divorce.

Due to the complexities of the law and potentially serious consequences for mistakes or violations, many employers outsource COBRA administration to a third-party administrator (TPA).

Reasons to Outsource COBRA Administration

COBRA’s complex rules and requirements, mandatory notices and multiple deadlines can be difficult to follow and administer, whether you are a large company and have many qualifying events to keep track of, or you are a small organization that rarely has to deal with COBRA. Here’s why many companies outsource COBRA administration and why you might consider finding a TPA to handle your COBRA obligations:

• It’s complicated. COBRA typically applies to employers with 20 or more employees, although how that number of employees is defined can be complicated if you have fluctuations of employee numbers throughout the year or numerous part-time employees. If your company is subject to COBRA, understanding and keeping track of the various requirements can be difficult. You will need to correctly administer things like required notices, election and payment deadlines, late and partial payments, different coverage periods, changes to plan options, address changes and terminations of coverage.
• It can be costly. Both the Internal Revenue Service (IRS) and U.S. Department of Labor (DOL) oversee COBRA-related laws. Both the IRS and DOL can levy fines and taxes, including fines of $110 per day just for the failure to properly issue COBRA notices and requested documents. The risk of missing a deadline for a notice or disclosure is high, especially if you don’t deal with COBRA frequently. In addition, you run the risk of individuals suing you for COBRA mistakes. Employers who do not administer COBRA coverage correctly can also be held responsible for paying individual health claims for qualified beneficiaries.
• It’s time-consuming. The knowledge and expertise needed to properly administer COBRA requires extensive training. Combined with the time expended by internal HR employees to actually administer COBRA, the amount of training necessary is often disproportionate to the number of qualifying events. COBRA administration can be stressful and time-consuming, and dealing with COBRA in-house is often an inefficient use of HR’s time and resources. On the other hand, if your company experiences high employee turnover or numerous qualifying events, you could be overwhelmed by the amount of work required by COBRA, taking away valuable time from other essential duties. Due to the complexity of COBRA, the high risk of fines, taxes and lawsuits, and the inefficient use of HR’s time and effort, COBRA administration is a prime candidate for outsourcing.

Considerations When Choosing a COBRA Administrator

If you do choose to outsource COBRA administration to a TPA, you will want to consider a few qualities as you choose a TPA:

• Compliance expertise—COBRA compliance depends on the prompt implementation of federal guidelines and regulations that stipulate what needs to be done and when it must be completed. Check that your TPA is well-respected for its expertise, follows written procedures and includes independent monitoring to ensure full compliance with COBRA regulations.
• Technological advancement—Generally, you will want to find an organization that is well-equipped with technology to handle on-time electronic delivery of all the required notices and letters. A good technological system will streamline the COBRA compliance process and provide proof that all deadlines were met. In addition, the system should be secure and encrypted to protect the privacy of information.
• Customer service competence—Assessing the TPA’s level of customer service is also important. Having a good TPA can protect your company from having to deal with disgruntled ex-employees. Also, good customer service from your TPA will reduce the incidence of employee complaints about how COBRA is being handled.
• Legal accountability—Another important consideration is the indemnification protections provided in the contract. Although a TPA will never be able to take on all legal risk of COBRA administration, it should stipulate in the contract that the TPA takes financial responsibility for its own mistakes. Of course, if you fail to notify them when an employee is terminated or reports another qualifying event, you will be responsible for COBRA noncompliance, but a good TPA will relieve you of at least some of the risks associated with COBRA.

Logistics of COBRA Outsourcing

After you have decided to outsource COBRA administration and have chosen a TPA, you will enter into a contract with them. As mentioned above, it is extremely important to review the indemnification process and make sure your company is protected from the TPA’s mistakes. After all, this is probably one of the main reasons you are outsourcing COBRA administration—to cut down on the financial risk resulting from any mistakes.

Although many TPAs are similarly priced, there are often two choices for how you can pay fees. Typically, you will either pay a flat fee per qualifying event or a monthly fee per eligible employee. Companies with low turnover will likely prefer the fee per qualifying event, whereas you might choose the monthly fee per eligible employee if you have high turnover or want to predict your COBRA administration-related spending more closely.

When outsourcing COBRA administration, you will also need to designate someone to serve as a liaison between your company and the TPA. This person will ensure that all qualifying events are communicated to the TPA, field any complaints about the TPA from COBRA-qualified employees, and address any other concerns or communication regarding COBRA administration.

For more information on COBRA administration, contact The Unland Companies today.

These last few years have been disruptive and caused a lot of strain on HR professionals. As such, HR departments have undergone significant transformations, expanding their scope to encompass key functions like overseeing employee compensation and benefits. As businesses grow and evolve, it becomes crucial to grasp the impact of employee benefits and related challenges on HR teams.

The job of HR professionals is becoming more complex due to shifting employee demands and constant changes. This article explores reasons why HR professionals are struggling with employee benefits.

Employee Attraction and Retention

As talent shortages persist across industries, many employers are grappling with adapting to the “new normal” to address this issue effectively. HR departments are dealing with an inadequate number of candidates or insufficient resources to meet the high demand for candidates. On top of that, more of today’s workers are confidently exploring opportunities at other companies. As a result, many HR professionals realize they need to offer comprehensive and competitive benefits packages and compensation to attract and retain today’s talent.

Keep in mind that even if organizations offer comprehensive benefits, the success of these offerings comes down to how employees perceive their benefits. Some employees may leave a company for “better” benefits, only to find out they already had the ones they were hoping for and may now have less robust benefits. HR professionals can get ahead of this issue by addressing potential benefits education gaps to ensure current employees know about available offerings and how they bring value to their unique lifestyles.

More than ever, HR professionals are working hard to attract and keep more employees. However, creating a benefits strategy that appeals to various ages and demographics is challenging. While health and dental insurance and a 401(k) are table stakes for many organizations, much of the workforce is also looking for options like flexible work schedules and generous paid-time-off policies. The importance of recognizing that different groups of people value varying benefits cannot be understated. It can be difficult to offer benefits that appeal to a multigenerational workforce, but HR professionals can start by surveying current employees to see what they want and need for benefits.

Time-consuming Tasks

Traditional HR departments already handle recruitment, workplace safety, compliance, payroll and employee engagement. Now, many employers are adding time-consuming tasks, such as managing benefit strategies and budgets, to the plates of HR professionals. This can come with more manual tasks, spreadsheets and paperwork. HR professionals face countless benefits challenges, including employee education and enrollment and administration.

To help free up HR employees’ time to focus on more strategic tasks and critical day-to-day work, employers could consider technology, tools or partners for benefits administration. Software platforms, applications or websites can automate otherwise manual processes, saving time and increasing accuracy.

Compliance and Evolving Health Care Regulations

Legislative changes have led to expanded job responsibilities for HR departments. Besides juggling routine tasks such as recruitment and employee relations, HR professionals are now adapting to new roles or learning new skills. For example, these expanded responsibilities could include staying up to date on compliance as it relates to health insurance plans. The influx of rules and regulations, particularly concerning health care, puts employers at higher risk of lawsuits, fines and penalties, making compliance a critical concern.

Inflationary Pressures

Amid high inflation and a potential recession, businesses and workers alike are trying to figure out how to do more with less. Undoubtedly, that includes HR professionals as well. In fact, a 2023 survey by financial wellness benefits provider BrightPlan found that 77% of HR executives report experiencing financial stress. Many are also experiencing unmanageable levels of debt.

HR leaders face the difficult task of supporting employees during tough economic conditions as they deal with the same challenges themselves. HR professionals are often responsible for sharing and communicating about financial wellness benefits to employees but may forget the content and resources also apply to them. While many HR professionals are focused on ensuring employees know about and fully understand the available financial wellness benefits, they may need to remind themselves of these perks and take advantage of available financial resources.

Summary

The benefits landscape is constantly changing, so it’s important for HR departments to stay informed. By fostering collaboration with various departments, staying informed on regulatory changes and employee benefit preferences, and embracing technology-driven solutions, HR professionals can drive their organizations toward success amid a challenging employment landscape.

Contact us for additional workplace resources.

As small businesses compete amid ongoing talent shortages, often with fewer resources than large companies, they may need to get creative in their attraction and hiring efforts. As such, employee referral programs are growing as a popular strategy. They are generally successful because employees put their names on the line by endorsing someone else.

This article explores the benefits of employee referral programs for small businesses and strategies for creating and maintaining successful programs.

The Case for Employee Referral Programs

Employee referral programs allow existing employees to recommend candidates for open positions. The idea behind employee referral programs is that candidates brought in this way will be better suited for the organization because the existing employees have already done the pre-screening work. Employees tend to carefully consider possible referrals because they feel accountable to the organization and the person they refer. High performers tend to refer other high performers, which benefits employers.

Current employees can provide information about the company to referred candidates and describe the company culture and employee benefits package, giving candidates a good idea of what working for the organization would be like before being called in for an interview. In this way, referral programs can help save HR, hiring managers and the organization time and money; since the employee knows both the company and the person they refer, this typically leads to a good match for the employer and new employee. In fact, referral programs can reduce hiring time by half compared to traditional hiring methods. LinkedIn reports that while it generally takes a company 55 days to hire a candidate, referred hires only take 29 days. Since referred employees are faster to hire, organizations also save money on internal labor costs or outsourcing.

In addition, employee referral programs also give organizations increased access to passive job seekers. Such candidates may currently be employed and might not have interviewed for a position with the company without a recommendation.

An effective employee referral program can also help support an organization’s reputation as an employer. A strong employer brand enables a company to stand out from others. Employer branding aims to promote an organization as a good place to work, with the target audience being current and prospective employees. Simply put, the employer brand answers, “Do I want to work there?” So, when a current employee is engaged and satisfied at work, they will likely speak positively about the company and encourage their friends and family to apply for open positions.

Strategies for Small Businesses

An effective employee referral program can save small businesses time, money and other resources during hiring. Employers can consider the following strategies for establishing and maintaining such programs:

Make submitting referrals easy.Clear communication is necessary so that employees know how to submit referrals. This process should be simple, allowing employees to send a resume, provide an email and phone number, or submit a standard form to start the referral process.

Incentivize employee referrals. To enhance the appeal of referring friends and family to the company, employers may provide monetary rewards, paid time off or other gifts to current employees who refer quality candidates for open jobs.

Leverage technology. Small businesses may be short on staff, but technology can help manage programs and automate referral processes. Employee referral management systems can help organizations streamline the process. Additionally, artificial intelligence that accesses employee social networks can help suggest suitable matches. HR can then provide these referral recommendations to these employees and ask for a connection to begin recruiting conversations. Employees likely don’t know the skills and qualifications of everyone in their network, but technology can help organizations find ideal candidates quicker.

Keep employees informed. It’s important to keep employees in the loop about the status of their referrals to avoid frustration and increase transparency. For example, let them know when the referral has been received, if interviews are scheduled and where the candidate is in the overall hiring process.

Acknowledge good referrers. Public recognition can go a long way with employees, so small businesses should consider awards or public praise to let employees know they appreciate their effort in sending referrals and being brand ambassadors. As such, public acknowledgment is a cost-effective way to increase referrals.

Think beyond employees. Referral programs don’t need to rely solely on employee referrals. Companies can decide to open the referral opportunity to additional stakeholders, such as retirees and customers. For example, loyal customers may feel like a part of the company and be eager to refer their friends for open roles.

Summary

Because employees know company culture and employee experience firsthand, they are uniquely positioned to understand other workers who would thrive in the environment or perhaps have a similar disposition as themselves. Word of mouth travels fast, so small businesses can use that to their advantage to secure more top talent.

Amid ongoing talent shortages, employee referral programs can be a cost-effective strategy to attract and retain talent, hirefaster and boost employee morale.

Contact us for more information.

The retail industry is comprised of businesses that sell goods and services to consumers. Such businesses range in size and may specialize in a variety of product offerings (e.g., groceries, household items, toiletries, clothes, toys and technology). These businesses may conduct their sales within stores, online or through a combination of both methods. In any case, the retail sector plays a critical role in the U.S. economy by employing a substantial proportion of the nation’s workforce and fostering consistent financial growth.

This industry has faced various ups and downs in recent years, largely due to fluctuating consumer habits amid the COVID-19 pandemic, ongoing supply chain complications and rising inflation issues. Yet, the sector has still managed to promote economic growth. In fact, the National Retail Federation (NRF) confirmed that retail sales have risen by more than 7% each year since 2020, significantly surpassing average growth rates over the past two decades. While a slowing economy could limit profit margins going forward, widespread wage increases resulting from a competitive labor market will likely fuel continued consumer spending and boost overall sales.

Nevertheless, several industry trends could pose challenges for retail companies in the coming months and years, including organized retail crime (ORC) concerns, sustainability issues, labor shortages and cyber exposures. As such, it’s important for retail businesses to closely monitor these sector developments and adjust their risk management practices as needed. This article provides more information on retail industry trends to watch.

ORC Concerns

ORC—which refers to large-scale shoplifting incidents or other illegal (and sometimes violent) acts conducted by groups of criminals with the purpose of stealing mass amounts of merchandise—has become a growing concern across the retail sector. According to NRF data, ORC costs retail businesses an average of $700,000 for every $1 billion in sales.

This surge in ORC has predominately been caused by criminals looking to capitalize on the accelerated shift to e-commerce brought on by the pandemic. Specifically, criminals are stealing large amounts of goods off store shelves and reselling them to unsuspecting online shoppers at reduced prices. Additionally, some criminals are infiltrating retail companies’ supply chains and stealing merchandise before it even can reach store shelves to redistribute these items on the black market.

Altogether, the NRF reported that ORC has increased by 26.5% since 2020, serving as a primary driver of retail shrinkage (inventory losses caused by anything other than actual sales) and contributing to nearly $100 billion in annual sector losses. Compounding concerns, ORC will likely become even more prevalent as the economy worsens. After all, financial experts have asserted that retail theft incidents typically jump during periods of economic downturn, as evidenced by an uptick in ORC during the Great Recession from 2007-2009.

In an effort to help minimize ORC concerns, the federal government is in the process of finalizing the Combating Organized Retail Crime Act of 2023. This legislation would provide funding for the creation of a national ORC Coordination Center, as well as allocate resources aimed at establishing theft prevention protocols, technical assistance, employee training and incident response measures at retail companies across the country. In addition to this federal initiative, 34 states have recently passed laws of their own pertaining to ORC prevention and penalties, with more states expected to follow suit.

Apart from this legislation, there are several steps that retail businesses can take to help mitigate ORC concerns, such as conducting preemployment criminal background checks to limit the likelihood of internal theft incidents; enhancing customer service measures (e.g., having employees stationed throughout the store floor and encouraging them to engage with customers) to ensure shoppers are adequately monitored at all times; implementing restricted merchandise return policies to reduce the risk of fraudulent returns; leveraging merchandise sensors, security systems, surveillance cameras and warning signage to deter criminals from stealing items and better identify perpetrators if incidents occur; and training employees on how to detect signs of retail theft and properly respond to these incidents without threatening their personal safety.

Sustainability Issues

Both stakeholders and regulators have placed greater emphasis on environmental, social and governance (ESG) initiatives over the last few years, thus seeking more transparency from businesses regarding their company values and commitments to ethical practices. According to a recent survey conducted by professional services network Deloitte, 6 in 10 retail executives said they believe businesses within the sector will face elevated scrutiny related to their ESG decisions in the year ahead.

Primarily, stakeholders and regulators have begun holding retail businesses to higher standards over the sustainability of their operations. For instance, consumers and investors have grown more conscious of retail companies’ impacts on the environment, including their greenhouse gas emissions and waste management protocols. Additionally, federal regulators have implemented legislation requiring certain businesses to disclose further information on their respective carbon footprints. With this in mind, retail companies that neglect to prioritize sustainable operations could be more susceptible to reputational damage, lost business, litigation issues and compliance concerns.

In order to keep sustainability top of mind and reduce the risk of ESG scrutiny from various parties, retail businesses should consider investing in energy-efficient technology and clean energy sources; implementing green materials and product packaging (e.g., recycled cardboard, corrugated bubble wrap and biodegradable plastics); upholding effective waste management procedures and leveraging recycling, upcycling and composting initiatives to limit total operational waste; evaluating vendors’ ESG practices and adding sustainability requirements to contracts as needed to ensure eco-friendly supply chains; documenting sustainability measures and making this information accessible to other parties; and consulting legal counsel to maintain compliance with applicable ESG legislation.

Above all, retail businesses should prioritize sustainability practices that will help deliver both short- and long-term environmental benefits. Yet, these practices need to be feasible, as setting unrealistic sustainability standards or making unattainable commitments could ultimately pose heightened ESG concerns. In some cases, doing so could even lead to allegations of greenwashing—sharing misleading information regarding the environmental advantages of a product—and subsequent litigation.

Labor Shortages

The past few years have been met with labor shortages across industry lines. Further, the pandemic motivated many employees to reevaluate their job expectations, thus prompting additional workforce adjustments and exacerbating such shortages. The retail sector is no exception to this trend. According to the U.S. Bureau of Labor Statistics, the industry is currently short 870,000 workers. What’s more, the aforementioned Deloitte study revealed that 7 in 10 retail executives believe labor shortages will be their top challenge in the year ahead.

As a result, it’s critical for retail businesses to invest in measures aimed at attracting and retaining employees. These measures may include offering more competitive wages and benefits packages; providing flexible shifts and work arrangements (e.g., hybrid or remote capabilities) when possible; implementing employee assistance programs and other workforce well-being initiatives; and establishing professional development and advancement opportunities (e.g., ongoing skills training, mentorships and promotions) that empower workers to pursue long-term careers in the retail field.

In addition to prioritizing employee attraction and retention strategies, retail companies may also want to utilize technology to increase operational efficiencies and, in turn, mitigate labor concerns. Examples of such technology include self-checkout stations that permit customers to make purchases without employee assistance, mobile applications that allow shoppers to receive automated customer service and digital solutions that permit workers to better track inventory.

Cyber Exposures

As workplace technology continues to advance and e-commerce surges in popularity, cybersecurity has become a rising concern throughout the retail industry. In particular, point-of-sale systems, consumer-facing websites, mobile applications and other software leveraged to conduct retail transactions typically hold a wide range of sensitive customer data (e.g., financial details and contact information), therefore making this technology more likely to be targeted in security breaches, ransomware attacks and other cyber incidents. Additionally, shifting data privacy regulations at both the federal and state levels have begun holding businesses more accountable for their cybersecurity failures.

Amid this evolving risk landscape, retail companies that don’t adopt effective cyber incident prevention and response measures could encounter serious consequences, including lost or damaged technology and data, prolonged business disruptions, reputational issues, stakeholder litigation and large-scale penalties from regulators. To avoid these consequences, retail businesses should consider tactics such as implementing advanced data protection protocols (e.g., access controls, multifactor authentication and encryption); segmenting networks to reduce the likelihood of lateral infiltration; providing routine cybersecurity training to all employees; establishing proper cyber incident response teams and making documented plans for different attack scenarios; partnering with vendors that value cybersecurity; consulting legal counsel to ensure compliance with applicable data privacy laws; and purchasing sufficient coverage to protect against potential cyber losses.

Conclusion

Overall, there are several trends currently impacting the retail sector. By staying on top of these developments and taking steps to mitigate their associated exposures, retail businesses can effectively position themselves to maintain long-term growth and operational success.

For additional, industry-specific risk management guidance, contact us today.

A vital aspect of running a small business involves managing its associated risks, as no operations are immune to internal or external threats. A risk management plan involves implementing various techniques that can help mitigate or prevent loss.

There are multiple ways a company can organize its risk management plan, but steps commonly consist of identifying, assessing, and managing risks. Businesses also need to continually monitor and review their policies and procedures to ensure their courses of action remain applicable and relevant.

Types of Risks

There are several types of risks small businesses may encounter, including the following:

• Financial risk involves the possibility that a business may lose money, fail to recoup its initial investment or not maintain the cash flow necessary to continue operations.
• Strategic risk refers to how a business’s decision-making or overall plan may result in loss or a failure to meet objectives.
• Operational risk relates to anything that could impact a business’s day-to-day functions, operations or business activities.
• Reputational risk involves threats to a company’s good name, brand or standing with the public or its clients.
• Hazard risk refers to events that can harm individuals, property or the environment.
• Cybersecurity and fraud risks relate to events that may occur through shortcomings in a small business’s IT or security systems.
• Compliance and legal risk refers to the losses that may arise from a company’s failure to adhere to federal, state or industry regulations.

Risk Management Process

While examples of risks are numerous, a comprehensive risk management plan is key to overcoming them. A plan generally includes the following steps:

• Identify the risk. By carefully examining their operations, businesses can discover several types of exposures that have the potential to create a loss.
• Assess the risk. After identifying threats, businesses can analyze the probability of the risks occurring and their potential severity.
• Manage the risk. Following the risk assessment, a business needs to determine how it will address the risks. Options include:
  • Avoidance—Elimination of the risk
  • Modify—Mitigating a risk’s impact or lessening the likelihood of it occurring.
  • Transfer—Shifting the risk to a third-party (e.g., an insurance company) through a contract.
  • Retain—Accepting the risk (or a portion of it) when the risk is
    deemed acceptable (e.g., it has a low likelihood of occurring or it would have a minimal impact)
• Monitor and review the plan. A crucial part of the risk management process involves continued monitoring and reviewing of strategies to help prepare for evolving or new hazards.

Risk Management Benefits

Small businesses can receive several benefits from implementing effective risk management protocols. Not only do these protocols mitigate or eliminate potential risks, but they may also lower insurance premiums, as insurers may note how they reduce the business’s likelihood of filing an insurance claim. Insurers may also offer resources to help a business strengthen its risk management practices.

It is never too early to begin risk management planning. Contact us today with any questions or for more information.

Having a primary care physician is one of the most important things an individual can do for their health, as it helps ensure they receive regular check-ups, aids in preventive care and allows for intervention before more intensive treatment is required. However, according to a recent study by nonprofit organization Kaiser Family Foundation, 17% of women and 28% of men in the United States don’t have a primary care physician. Compounding concerns, there is a scarcity of primary care physicians across many regions of the country, which the Association of American Medical Colleges expects to worsen by 2025.

Many employers recognize the value of primary care for their workers and, therefore, have adopted direct primary care (DPC) arrangements to increase employee access to such care. In addition to improving primary care access, DPC enables employers to manage their rising health care costs without shifting these expenses onto employees, all while ensuring high-quality care.

This article provides a general overview of DPC, including its potential benefits and other considerations for employers to keep in mind.

What Is DPC?

DPC is an alternative health care payment model to traditional fee-for-service insurance that’s intended to improve health care affordability and access to primary care for a flat fee. This is mainly a strategy for self-insured health plans. Under this approach, employers pay fixed monthly membership fees for their employees, which are typically less expensive than most health plans’ monthly premiums. These fees generally cover all primary care costs for employees. As a result, DPC is often more affordable and cost-effective than other forms of health insurance, such as preferred provider organization plans.

Under DPC arrangements, employers typically have no direct relationship with the health care system, meaning there is no third-party billing or fee-for-service payments. Instead, these arrangements center around the relationship between employees and their health care providers, eliminating the need for insurance companies to act as intermediaries to approve procedures and medications. This allows health care providers to have more leeway in determining treatment options for patients, allowing doctors to deliver the attention and care they believe patients need. While DPC arrangements often complement existing group health plans, employers should note that some variations of these arrangements may still require providers to bill through insurance plans and exclude certain primary care services from coverage, including prescription drugs.

What Are the Benefits of DPC?

Employers can consider the following benefits when evaluating whether to adopt DPC arrangements:

Reduced Health Care Costs

DPC arrangements can help employers reduce their health care costs. Instead of paying for each service provided over the course of a year, employers pay a flat fee per employee. Additionally, DPC membership fees are generally much less expensive than typical health insurance premiums. While DPC membership fees can increase over time, they usually increase less frequently than traditional health insurance premiums. Further, because employers do not have a direct relationship with the health care system under DPC arrangements, health care claims are usually easier to manage, which can help minimize administrative costs.

Strengthened Attraction and Retention Efforts

DPC is an attractive benefit for employees because it improves their access to health care and, in many instances, it costs them nothing to visit their primary care doctors. What’s more, the improved access and extra time employees have with their physicians can allow them to build strong, trusting relationships with these doctors, which can ultimately improve their long-term health. As such, by offering DPC arrangements, employers can demonstrate their commitment to employee well-being and bolster attraction and retention efforts. These arrangements are also often more affordable than traditional fee-for-service insurance, therefore allowing smaller employers who otherwise may not be able to afford to offer health insurance to do so.

Improved Employee Productivity and Wellness

Employees typically have improved access to primary care physicians under DPC arrangements, reducing the amount of time they have to spend away from work to receive treatment. In addition to offering virtual or telemedicine services, DPC arrangements generally permit employees to visit their doctors the same or next day when issues arise. DPC physicians also typically offer longer office hours than other physicians, allowing employees to visit doctors after their normal work hours. Additionally, many DPC locations are located near worksites, directly on-site or at shared multi-employer clinics, thus preventing employees from having to miss work or spend excess time traveling to see their doctors.

The average patient spends 121 minutes at each doctor visit, according to research from the American Journal on Managed Care. Of that time, the patient spends 37 minutes traveling and 87 minutes at the clinic. When at the clinic, the patient only spends between 8 and 12 minutes with a doctor. This means that the average patient spends less than 10% of the total time they invest to see their physician receiving care. Fortunately, DPC arrangements provide on-demand services, which means employees spend less time waiting—and, in turn, less time away from work—when they need to see their physicians. By decreasing waiting periods and increasing time spent with physicians, DPC arrangements can encourage employees to see their doctors when needed, addressing health issues and concerns as they arise instead of waiting until they potentially develop into bigger problems. This can help keep employees healthier and more productive.

Further, most DPC providers have significantly fewer patients than other physicians; in many cases, they have less than half the average number of doctors. These smaller patient pools allow physicians to spend more time with their patients, enabling them to unearth possible health issues before they become chronic or catastrophic. Subsequently, patients are less likely to require emergency room or urgent care visits and specialist services. With more time, doctors can better coordinate care and advocate for patients when referring them to outside providers as well.

Employer Considerations

While DPC offers many benefits, there are certain concerns employers should consider when evaluating whether to offer these arrangements. Since DPC only covers primary care services, employers will likely still need to provide employees with additional health insurance to cover specialists, hospitalizations and other health-related emergencies. While DPC arrangements are generally compatible with employers’ group health plans, there are some limitations. For example, DPC plans that cover all primary care costs among employees aren’t compatible with health savings account-eligible high deductible health plans. Further, these plans don’t accept Medicare, Medicaid and other government funds, making them exempt from cost and quality regulations.

DPC is often a location-specific solution. As a result, offering DPC arrangements can be challenging for employers with workforces located in different cities and states. This also makes it more difficult for employees to locate providers. In addition, DPC can hamper an employer’s ability to access medical claims data, potentially limiting their ability to help employees make informed health care decisions.

Summary

Rising health care costs are a major concern for most employers. DPC arrangements permit self-funded employers to reduce their health care costs while improving employee access to treatment. With this in mind, DPC is a cost-mitigation strategy that employers should carefully consider and monitor.

For more health care resources, contact The Unland Companies today.

Employers are becoming increasingly concerned about inflation’s impact on their employees, especially as the U.S economy faces the very real prospect of an upcoming recession. Many employers are searching for creative solutions to better support employees while navigating a competitive labor market. Many employers are building inflation-proof benefits packages to help employees counter inflation’s impact and address their attraction and retention struggles.

This article outlines employer strategies for assembling inflation-proof benefits packages.

Focusing on Comprehensive Benefits Packages

Many employers’ budgets are shrinking due to the current economic downturn. As a result, employers have fewer resources to allocate to employee compensation and benefits at a time when employee expectations remain high. With limited resources, employers can strategically invest in the benefits employees want and value most, such as cash incentives, flexible stipends, mental health support, enhanced leave options, and financial wellness resources. Shifting to a holistic approach allows employers to provide employees with comprehensive benefits packages that can ease current inflationary pressures.

According to a recent Mercer survey, HR managers reported that they are considering expanding benefits offerings to maximize employee benefit spending in response to inflation. These benefits offerings include:

• Financial wellness programs — Financial wellness programs go beyond retirement preparedness to focusing on all aspects of an employee’s financial well-being. These programs attempt to reduce financial stress as well as repair and increase an employee’s financial health by providing individualized financial guidance. 80% of employers have started addressing employee financial wellness, and 63% expect to increase their financial wellness budget in the next one to two years, according to the Employee Benefit Research Institute’s 2021 Financial Well-being Employer Survey.
• Voluntary benefits — Increasingly, employees expect their employers to provide voluntary benefits as part of a competitive benefits package. Many employers are offering voluntary, group-priced benefits — such as child and eldercare support and student loan repayment assistance — to satisfy employee expectations and remain competitive to attract talent.
• Employee discount programs — Employers are providing employees with one-time or ongoing discounts for services and expenses, such as retailers, restaurants, and professional tax, legal, and financial services. These benefits tend to be popular low-cost recruiting and retention tools for employers.

Establishing Long-Term Strategies

Employers have had to respond quickly to drastic shifts in social and economic conditions over the last few years. However, adjusting to frequent challenges can sometimes lead to organizational shortsightedness or overcorrecting. As most benefits-related decisions typically have lasting impacts, employers need to implement forward-looking strategies to ensure their employee benefits decisions align with their long-term goals. Establishing overarching benefits strategies — such as budgeting for mandatory and optional benefits, forecasting benefits budgets into the future, providing employees access to high-quality providers, focusing on employee well-being, and improving employee engagement — can provide organizations with multiple ways to effectively respond to a wide range of challenges and create inflation-proof benefits packages.

Implementing Innovative Approaches

Employers are currently facing tough decisions related to benefits offerings due to inflation and the current state of the labor market. Some employers are introducing innovative benefits offerings to meet employee needs without increasing costs to employees. These offerings include the following:

• Wellness spending accounts — These after-tax accounts allow employees to allocate money for benefits and expenses they want and need (e.g., gym memberships, student loan repayment programs, ID theft protection, mental and behavioral health support, and supplemental health insurance). These accounts — also known as lifestyle spending accounts — are funded completely by employers.
• Emergency savings accounts — Some employers offer after-tax contributions to employee 401(k) or depository institution accounts. These contributions can be matched or fixed. This benefit offering can incentivize and assist employees to build financial savings and prevent them from dipping into their retirement funds in an emergency.
• Paid time off conversion — Many employers are giving employees more flexibility in how they use their paid time off (PTO), including converting unused PTO into cash. Some employers allow employees to direct converted funds toward student loan payments, 401(k) contributions, or savings plans.
• Special equity grants — A small number of employers are offering one-time or off-cycle equity awards. In some cases, these grants are offered to employees who normally would not receive equity awards. Other employers are expanding their long-term incentive plans to provide all employees with equity awards, not just highly compensated employees.

Consulting With Third Parties

Many organizations, especially smaller ones, may not have a formalized compensation process or full-time compensation manager. This can make adapting their benefit offerings for an economic downturn extremely difficult. These organizations can work with compensation consultants to conduct an objective analysis of their benefits programs, develop long-term strategies, and make tailored adjustments. Skilled compensation consultants have the expertise to help organizations implement benefits changes and avoid costly pitfalls.

Conclusion

There’s a lot at stake for an organization when attempting to alter its benefits offerings to ensure they’re inflation-proof. The decisions employers make now will likely have long-term impacts on their organization’s finances, employee expectations, and ability to attract and retain employees. Inflationary pressures will likely continue to impact employees for the foreseeable future. By acting now to implement benefits solutions to address inflation’s impact on employees, employers can address their attraction and retention challenges and help employees feel confident in their financial well-being.

For more employee benefits resources, contact The Unland Companies today.

Employers are searching for effective mitigation strategies to combat rising healthcare costs with varying success. Shifting costs onto employees — such as offering high-deductible health plans and other cost-sharing methods — has been tried, but can be damaging to businesses amid a competitive labor market.

Self-insuring, on the other hand, could help reduce costs and improve service. While self-insuring may not be suitable for all businesses, it can certainly help control healthcare expenses by allowing employers to set cost-sharing limits, choose healthcare networks, and establish stop-loss limits to ensure they don’t overspend. Before switching to a self-insured plan, employers should first weigh the pros and cons.

Check out this toolkit to learn more about self-insured plans and find out if they’re right for your organization.

Employees are walking away from their employers in record numbers. A Prudential survey conducted toward the end of 2021 found that 46% of workers were actively seeking or considering finding a new job, and labor statistics backed those findings. According to the U.S. Labor Department, approximately 4.5 million workers quit their jobs in November 2021, setting a new record.

This might appear like welcome news for employers looking to hire—greater unemployment means more potential job candidates. However, confoundingly, there were still around 1.5 available jobs for each unemployed person near the end of 2021, according to USA Today. And, for the last six months of the year, job openings posted by employers topped 10 million, according to the U.S. Labor Department.

This information helps illustrate the key problem employers face right now: Workers are willing to quit jobs—and turn down open positions—that don’t satisfy their needs. During this period of mass resignation (sometimes referred to as “the great resignation”), employers need to demonstrate their value to employees or risk losing them. In other words, employers must show that they can provide workers with more than just a paycheck. One of the best ways to do this is by expanding employee benefits offerings.

This article outlines some of the most attractive perks some employers are using to strengthen their attraction and retention efforts.

Affordable Benefits, Generally

Many workers who quit their jobs at the end of 2021 were front-line, low-wage or low-level employees, according to a Mercer survey. Few of these workers—often from the service sector—had access to meaningful employee benefits, if any at all. After enduring the worst of the COVID-19 pandemic, these employees concluded that their labor wasn’t worth their compensation.

Savvy employers have picked up on this and are now beginning to offer more attractive offerings to low-level employees. Beyond increased compensation, some employers are starting to offer affordable health plans and financial wellness resources. Since these workers have historically been unable to access such offerings, even modest benefits can make a huge difference when courting these employees.

Retirement Plans

Retirement uncertainty remains a top concern for employees. Only 62% of workers feel secure about their ability to save enough to retire, according to the Employee Benefits Research Institute.

Providing employees with retirement plan options, such as a 401(k), can be a great way to add value and financial security to a position. Some employers have been going further with their offerings and have started increasing their retirement plan matching. Such efforts help prove an employer’s investment in employees and their futures, which, in turn, fosters greater workplace loyalty.

Flexible Work

Workplace flexibility is another critical issue for employees. A Gallup survey found that 91% of workers who worked from home at least some of the time during the pandemic want to retain that perk indefinitely. Separately, according to a Randstad survey, nearly a quarter of employees (24%) said flexible working hours are the most important employee benefit. These figures indicate that if employers want to stay competitive, they will need to allow for some workplace flexibility—whether through flexible work hours, work-from-home arrangements or hybrid work scheduling.

Moreover, by 2025, almost a quarter (22%) of the U.S. workforce is expected to be fully remote, according to an Upwork study. That’s why some employers are expanding their flexible work policies now as a way to recruit talent. According to a Robert Half survey of senior managers, 41% said they were now allowing employees to choose where they work. Employers can expect to see similar policies crop up in the near future as workplaces compete for employees in this evolving market space.

Personalized Well-being Resources

Personal well-being has never been more important to employees than during the COVID-19 pandemic. This makes sense given that the pandemic exposed and worsened issues, including financial insecurity and mental health problems.

Some employers are expanding their voluntary benefits to help workers deal with these types of issues. After all, helping employees navigate personal problems at home can lead to better focus and productivity in the workplace. That’s why employers are tacking on benefits such as mental health counseling, financial planning assistance and student loan repayment plans.

Conclusion

Choosing the right employee benefits for a workplace can be a tricky decision. Employers must weigh employee desires against benefits budgets and operational objectives. Yet, despite potential challenges, providing meaningful benefits is certainly worth the effort. In this unprecedented labor market, an employer’s benefits offerings can be the difference between a satisfied workforce and a great resignation.

Reach out to The Unland Companies to discuss benefits options that are right for your unique workforce.

Are you prepared for these big changes?

We’re all familiar with the havoc cyberattacks have wrought on businesses around the world in the last several years. According to the Ponemon Institute State of Cybersecurity Report, 66 percent of small- and medium-size businesses have reported a cyberattack in the past 12 months, while 69% say these attacks are becoming more targeted. This in turn leads to massive financial losses — in fact, in 2020 Cybersecurity Ventures estimated cybercrime would continue to grow by 15% annually until 2025, accounting for $10.5 trillion.

This, in turn, has affected the insurance industry. According to Insurance Business magazine, carriers are now adjusting cyber liability policies to account for massive losses that have been incurred from these attacks. The loss ratio associated with cyber policies has grown from 43% in 2016 to 73% in 2020, leading many carriers to either exit the market or require more strict prevention protocols and increase premiums.

“Cyber insurance was only ever meant to be for a novel, an unforeseen catastrophic event,” Jess Burn, an analyst at the advisory firm Forrester, said in an interview with SC Magazine. “When things like ransomware were limited to someone’s grandmother on their old PC, that was a license to print money. But now that music has absolutely stopped and they’re reeling from those losses.”

What can my business do?

No organization is completely safe from cyber criminals. When the worst comes to pass, having some sort of safety net in place can make a huge difference in the long run. Though incidences of cybercrime have put a strain on both businesses and insurance carriers, the Unland team can help you find Cyber Liability coverage solutions that align with your potential risks and budget.

For more risk management guidance and Cyber Liability insurance solutions, contact the Unland team today.

The Importance of Multi-factor Authentication

As cyber attacks become more and more common, protecting your data is increasingly difficult. In fact, a study from Juniper Research found that by 2023, cyber criminals are expected to steal an estimated 33 billion records. In light of the growing number of cyber attacks, many companies are turning to multi-factor authentication (also commonly called MFA or multifactor authentication) to enhance their cyber security.

While no cyber security method is foolproof, using multi-factor authentication can add an extra layer of security to your online accounts. So how exactly does multi-factor authentication work?

What Is Multi-factor Authentication?

While complex passwords can help deter cyber criminals, they can still be cracked. To further prevent cyber criminals from gaining access to employee accounts, multi-factor authentication is key. Multi-factor authentication adds a layer of security that allows companies to protect against compromised credentials. Through this method, users must confirm their identity by providing extra information (e.g., a phone number or unique security code) when attempting to access corporate applications, networks and servers.

With multi-factor authentication, it’s not enough to just have your username and password. In order to log in to an online account, you’ll need another “factor” to verify your identity. This additional login hurdle means that would-be cyber criminals won’t easily unlock an account, even if they have the password in hand. A more secure way to complete multi-factor authentication is to use a time-based one-time password (TOTP). A TOTP is a temporary passcode that is generated by an algorithm (meaning it’ll expire if you don’t use it after a certain period of time). With this method, users download an authenticator app, such as those available through Google or Microsoft, onto a trusted device. Those apps will then generate a TOTP, which users will manually enter to complete login.

Why Multi-factor Authentication and Password Management Is Important

As multi-factor authentication becomes more popular, some states are considering requiring it for certain industries. It’s possible that as cyber security concerns continue to grow and cyber attacks become more common, other states will follow suit. Even if it’s not legally required, ongoing password management can help prevent unauthorized attackers from compromising your organization’s password-protected information. Effective password management protects the integrity, availability and confidentiality of an organization’s passwords.

Above all, you’ll want to create a password policy that specifies all of the organization’s requirements related to password management. This policy should require employees to change their password on a regular basis, avoid using the same password for multiple accounts and use special characters in their password.

This Cyber Risks & Liabilities document is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice.

COVID-19 medical bills are expected to increase next year. During the height of the pandemic, insurers waived the costs of certain COVID-19-related services, such as emergency room (ER) copayments, hospital stay deductibles and testing charges.

As the pandemic eases, those previously waived costs are returning. Many insurers are now treating COVID-19 much like other diseases, meaning they no longer provide special exceptions for COVID-19-related services.

This article briefly explains why this pricing change matters to you and what you can do to protect your health budget.

Where Might Expenses Increase?

You can expect to pay more next year for any COVID-19-related medical procedure, including testing and hospital visits for treatment. Testing is particularly important to note, as it was free in almost all cases during the height of the pandemic. Now, it could cost upwards of $200 for some screening procedures—depending on the circumstances and your plan details.

Plans and insurers will still cover testing when medically necessary. However, routine workplace and school testing may no longer be considered “medically necessary” and therefore might not be covered by insurance in certain cases.

Keep this in mind when considering routine COVID-19 screening measures. You should check your plan details or speak with human resources (HR) to see how much your insurance covers in such situations. For instance, it may cover testing prescribed by your doctor.

How Might Rising Costs Be Controlled?

One obvious way to avoid COVID-19 medical bills is to reduce your chances of catching the disease in the first place. This means getting vaccinated if you can, wearing a mask and observing other official health guidance.

Another way to control expenses is by reviewing your health plan details to see your cost-sharing responsibilities. For instance, it’s often much cheaper to visit an urgent care than an ER. HR can help you better understand your plan and its limitations.

Additionally, when visiting a medical facility, make sure you ask for an itemized bill. This will show you everything you were charged for. Bills sometimes contain duplicate or incorrect charges. Having an itemized bill can help you dispute these costs and reduce your bill size.

Where Can I Learn More?

HR is your best resource for understanding how to maximize your health care plan. They can help explain cost-sharing scenarios and offer tips for lowering your medical costs.

Let Unland meet your challenges head on.
The hurdles faced by school districts are unparalleled, but not impossible to cover. Contact the Unland Companies today and find out how we can help protect your school district and your students.

For more information, contact Nate Rugaard, nrugaard@unland.com, or call (309) 642-8504.

Reported by Peg Knox, Defined Contribution Institutional Investment Association (DCIIA)

Financial wellness programs are increasingly embracing a broader definition of the term to include the full range of employer benefits, such as health and retirement benefits, emergency savings, work/life balance programs, etc. This more holistic view has been driven in part by the COVID-19 pandemic, which has magnified issues in emergency savings, income inequality, work-life balance, and other relevant topics, and accelerated change in this area.

The Defined Contribution Institutional Investment Association (DCIIA) provided a starting framework for financial wellness discussions in our 2017 white paper, “A Financial Wellness Primer.” This paper may help to address the “why” of implementing a financial wellness program, noting, “Whether motivated by altruism and paternalism, ROI [return on investment], lower costs or a dynamic workforce environment, the employer’s goals and employee’s desires are well aligned when it comes to retirement readiness and financial wellness in the workplace.”

In previous articles, we have covered participant communications and creating inclusive financial wellness programs and touched on some of their typical elements and implementation considerations. As wellness programs evolve, they are going beyond retirement topics to include education and assistance with:

• Budgeting and personal finance;
• Student loans;
• Emergency savings; and
• Financial considerations in health insurance and health care.

When announcing a new financial wellness program or offering, consider the following:

Remind employees of what’s in it for them: To those creating a wellness program, it might seem obvious why it’s important and how it benefits employees, but those features need to be clearly spelled out—don’t assume inferences will be made. Theoretical discussions on the benefits of saving or jargon-filled updates are likely to alienate rather than engage your employees. The more customized you can make your messaging based on employee demographics, the better.

Provide engaging tools: Attention spans are short, and time is tight. Give employees actionable, useful resources such as checklists, timelines, FAQs, and tip sheets. Bundle information into annual enrollment, but also send reminders throughout the year. Consider contests, quizzes and fun live or virtual events to bring financial wellness topics and resources to life. Leverage internal resources such as marketing, social media and communications teams and employee resource groups.

Set specific goals and measure progress: Share your goals with your employees and how you came up with them. Tell them you’ll be checking in to measure progress and get feedback. If people feel that they are part of something bigger than themselves, they might be more incentivized to be engaged. Note that their individual work on financial wellness helps your organization thrive and grow stronger, as employees feel more empowered and in control of their financial life.

Offer multiple engagement points: Providing a phone number and email address for employee questions is just a starting point. What about offering texting, a chat feature on your intranet or even a benefits app? Can you create a dedicated channel on internal communications platforms such as Salesforce, Slack or similar tools that will help to meet employees where they are? As offices open back up, consider having an information table at employee happy hours or meetings — real-life interaction doesn’t need to be limited to an annual benefits fair.

As plan sponsors look to assess their programs’ impact, measurement tools might include:

• Employee surveys: Brief “spot surveys” as employees engage with financial wellness programs can create a feedback loop for continual improvement. The key is to not only create the survey mechanism, but to implement a robust follow-through process that ensures that survey feedback is regularly reviewed and acted upon.
• Digital metrics: Having staff or a consultant or service provider capable of monitoring, analyzing and reporting on web- and email-based metrics is almost table stakes in today’s digital environment, at least for larger organizations. These metrics can help you assess which communication programs and tools are getting attention and which ones are lagging. Again, a feedback loop is crucial, so the data is not reported in a silo or seen as an isolated function. Ideally, all key stakeholders should be aware of topline metrics and be empowered to take action to improve them.
• Service provider reporting: What can your wellness providers offer to you and your participants in terms of a feedback mechanism? How can needed improvements or enhancements be communicated to them and what will the process be for ongoing monitoring and action? Having numerous participants ask the same question, run into the same problem or point of confusion, or otherwise hit roadblocks in program offerings, without being addressed, will continue to negatively impact engagement and outcomes.

Recent ongoing research from DCIIA’s Retirement Research Center and Commonwealth highlights issues specific to low- and moderate-income employees in light of COVID-19. Many of them are struggling with health issues, income losses and increased debt, and have tapped into (or tapped out) their emergency savings. Some are borrowing from friends and family, racking up expensive credit card debit or selling possessions to get by. Recordkeepers and plan sponsors can help these plan participants move in the right direction by:

• Providing employee hardship funds;
• Connecting employees with guidance on repaying debt;
• Encouraging intermittent saving where their budget allows; and
• Setting up emergency savings products through their platforms so that participants can begin saving for emergencies when they are able to do so.

Be sure that you are considering the full spectrum of your employee population as you assess and implement financial wellness offerings — often the decisionmakers are far removed from many of their employees when it comes to salary, benefits, education, and day-to-day work experience. An effective and inclusive program will speak to — and benefit — everyone.

Peg Knox is the chief operating officer (COO) of the Defined Contribution Institutional Investment Association (DCIIA) and is a former plan sponsor. Additional resources on this topic are available in DCIIA’s Resource Library.

For more information on building a solid employer benefits package that includes financial wellness options, contact Nate Rugaard, nrugaard@unland.com., or Chad Arseneau, carseneau@unland.com, or call (309) 347-2177.

This feature is to provide general information only, does not constitute legal or tax advice and cannot be used or substituted for legal or tax advice. Any opinions of the author do not necessarily reflect the stance of Institutional Shareholder Services Inc. (ISS) or its affiliates.

Keeping workplace technology up and running is vital to any organization’s success. While this task seems feasible, it’s growing harder and harder each year as cybercriminals expand their reach. It’s not enough to simply protect workplace technology with software and security protocols. It’s also critical for your organization to test the overall effectiveness of these protocols on a regular basis. That’s where penetration testing can help.

Essentially, penetration testing consists of an IT professional mimicking the actions of a malicious cybercriminal to determine whether an organization’s workplace technology possesses any vulnerabilities and can withstand their attack efforts. Conducting a penetration test can help your organization review the effectiveness of workplace cybersecurity measures, identify the most likely avenues for a cyberattack and better understand potential weaknesses.

Review this guidance to learn more about what penetration testing is, the benefits of such testing and best practices for carrying out a successful test within your organization.

What Is Penetration Testing?

Put simply, penetration testing refers to the simulation of an actual cyberattack to analyze an organization’s cybersecurity strengths and weaknesses. This testing usually targets a specific type of workplace technology, such as the organization’s network(s), website, applications, software, security systems or physical assets (e.g., computers and smart devices). Penetration testing can leverage various attack methods, including malware, social engineering, password cracking and network hacking, among others.

Generally speaking, penetration testing is often performed by a professional from a contracted IT firm who is not associated with the organization being assessed in any way. This helps the cyberattack simulation seem as authentic as possible. Penetration testing is typically either external or internal in nature. The primary differences between these forms of testing are as follows:

• External penetration testing requires the IT expert to attack an organization’s external-facing workplace technology from an outside perspective. In most cases, the IT professional won’t even be permitted to enter the organization’s physical establishment during external penetration testing. Rather, they must execute the cyberattack remotely—often from a vehicle or building nearby—to imitate the methods of an actual cybercriminal.
• Internal penetration testing allows the IT expert to attack an organization’s internal-facing workplace technology from an inside perspective. This form of testing can help the organization understand the amount of damage that an aggrieved employee could potentially inflict through a cyberattack.

In addition to these testing formats, there are also two distinct types of penetration tests. How much information an organization provides the IT professional prior to the cyberattack simulation will determine the penetration test type. Specifically:

• An open-box test occurs when the IT expert is given some details regarding the organization’s workplace technology or cybersecurity protocols before launching the attack.
• A closed-box test occurs when the IT expert is provided with no details other than the organization’s name before conducting the attack.

Ultimately, the penetration testing format and type should be selected based on the particular workplace technology elements or cybersecurity measures that an organization is looking to evaluate.

Benefits of Penetration Testing

Penetration testing can offer numerous advantages to your organization, including:

• Improved cybersecurity evaluations—By simulating realistic cyberattack situations, penetration testing can help your organization more accurately evaluate its varying security strengths and weaknesses—as well as reveal the true costs and of any security concerns.
• Greater detection of potential vulnerabilities—If any of your workplace technology or other cybersecurity protocols fail during a penetration test, you will have a clearer picture of where your organization is most vulnerable. You can then use this information to rectify any security gaps or invest further in certain cyber initiatives.
• Increased compliance capabilities—In some sectors, organizations are legally required to engage in penetration testing. For example, the Payment Card Industry Data Security Standard calls for organizations that accept or process payment transactions to execute routine penetration tests. As such, conducting these tests may help your organization remain compliant and uphold sector-specific expectations.
• Bolstered cybersecurity awareness—Mimicking real-life cyberattack circumstances will highlight the value of having effective prevention measures in place for your employees, thus encouraging them to prioritize workplace cybersecurity protocols.

Penetration Testing Best Practices

Consider these top tips for executing a successful penetration test within your organization:

• Establish goals. It’s crucial for you to decide what your organization’s goals are regarding the penetration test. In particular, be sure to ask:
  • What is my organization looking to gain or better understand from penetration testing?
  • Which cybersecurity threats and trends are currently most prevalent within my organization or industry? How can these threats and trends be applied to the penetration test?
  • What specific workplace technology elements or cybersecurity protocols will the penetration test target?
• Select a trusted IT professional. Consult an experienced IT expert to assist your organization with the penetration test. Make sure to share your organization’s goals with the IT professional to help them understand how to best execute the test.
• Have a plan. Before beginning the penetration test, work with the IT expert to create an appropriate plan. This plan should outline:
  • The general testing timeframe
  • Who will be made aware of the test
  • The test type and format
  • Which regulatory requirements (if any) must be satisfied through the test
  • The boundaries of the test (e.g., which cyberattack simulations can be utilized and what workplace technology can be targeted)
• Document and review the results. Take detailed notes as the penetration test occurs and review test results with the IT expert. Look closely at which cybersecurity tactics were successful during the attack simulation and which measures fell short, as well as the consequences of these shortcomings. Ask the IT professional for suggestions on how to rectify security gaps properly.
• Make changes as needed. Based on penetration test results, make any necessary adjustments to workplace technology or cybersecurity protocols. This may entail updating security software or revising workplace policies.
• Follow a schedule. Conduct penetration testing at least once every year, as well as after implementing any new workplace technology.

For more risk management guidance and Cyber Liability insurance solutions, contact the Unland team today.

Attracting and retaining talent is often a top priority for HR departments. Given the effect the COVID-19 pandemic has had on the job market, one might imagine this task is easier than ever. Unfortunately, that’s far from the truth.

While there may be more candidates than usual, attracting quality talent and retaining top performers still remains a struggle, worsened by COVID-19 and its effects on the workplace.

This article shares some tips for attracting and retaining workers amid the COVID-19 pandemic.

Expand Hiring Pools

The COVID-19 pandemic has demonstrated how quickly teams can adapt, with some workplaces shifting entirely to telework. After months of remote-working success, many workplaces have said they will allow telework permanently even after the pandemic subsides. That’s because of the numerous advantages of remote work.

For one, these individuals won’t take up office space, saving room for others who need it. Additionally, this flexibility allows recruiters to expand hiring pools to anywhere with an internet connection. This can be a great benefit for employers that haven’t had luck finding quality talent near them.

Adapt the Workplace Layout

Amid the COVID-19 pandemic, many workers are concerned about their health and well-being while at work. By addressing these concerns, employers can bring peace of mind to employees and, in turn, attract workers who may have held reservations about their safety.

Employers can do this by adapting their workplaces to focus on worker health. This includes mandating social distancing, moving desks around, holding virtual meetings exclusively, allowing flex scheduling and offering telecommuting. At the end of the day, workplaces that demonstrate concern for employees will be the ones where individuals actually want to work. Conversely, if employees are forced to choose between their safety and their jobs, employers shouldn’t expect good retention.

Provide Meaningful Benefits

The pandemic has affected everyone in significant, yet unique, ways. While all employees may be struggling in some way, their situations aren’t the same. Employers can help lift up their workers by offering meaningful employee benefits.

Robust health care offerings may seem like an obvious one-size-fits-all solution, but sometimes voluntary benefits are actually what employees need. These include caregiving assistance, financial counseling, increased paid time off and other nontraditional perks. There are many low-cost options available and, better yet, employees can choose their benefits a la carte to meet their individual needs.

Support Well-being

Employees are going through a lot right now, and many are suffering from poor mental health. This includes feeling depressed, lonely, anxious or any other negative emotion—feelings that may be compounded if employees are working in isolation. And the fact that employees are holding onto negative feelings isn’t terribly surprising, given the devastating impacts of COVID-19.

Now is the time for employers to show employees and potential recruits that they’re willing to invest in their well-being. Potential options include comprehensive employee assistance programs, one-on-one counseling, therapy sessions and stress-reducing activities. Solutions don’t need to break the bank, either. Something as small as a weekly outdoor activity, virtual chitchat meeting or group excursion could be enough to lift employees out of their funk.

Look Internally for Talent

If an employer is struggling to fill an important role with an outside candidate, it could be that they’re looking in the wrong place. Many organizations are now focusing on upskilling current employees and retraining them for more important positions. This can be significant for a few reasons.

Firstly, outside candidates would need to be trained anyway, so upskilling a current employee wouldn’t be any more burdensome. Since they’re already familiar with the workplace and its operations, it may even be easier.

Secondly, many recruiting teams are expecting big slashes to their budgets in the wake of the COVID-19 pandemic. As such, shuffling around current employees could help save the bottom line.

Thirdly, promoting employees from within the organization shows that an employer is willing to invest in their career growth. This sentiment can go a long way in retaining top talent.

Conclusion

There are many creative ways employers can attract and retain quality workers. Amid the COVID-19 pandemic, even small gestures can go a long way to distinguish an organization from others in its industry.

Reach out today to learn more about these and other workplace strategies.

On April 28, 2020, the Departments of Labor (DOL) and the Treasury (Departments) issued deadline relief to help employee benefit plans, plan participants and plan service providers impacted by the COVID-19 outbreak. Thereafter, on Feb. 26, 2021, DOL Disaster Relief Notice 2021-01 clarified the duration of this relief.

The deadlines were initially extended by disregarding an Outbreak Period from March 1, 2020, until 60 days after the announced end of the National Emergency (or such other date announced by the Departments). Under federal law, this period could not exceed one year, meaning that the relief was expected to expire on Feb. 28, 2021. However, the Notice allows the relief to extend beyond this date in some situations, while emphasizing that plan administrators should continue to make reasonable accommodations to prevent the loss of or delay in payment of benefits.

This Compliance Overview summarizes the continuation of relief guidance, including illustrative examples.

Extended Participant Deadlines

The initial relief provided participants in ERISA-covered plans with additional time to comply with certain deadlines affecting COBRA continuation coverage, special enrollment periods, claims for benefits, appeals of denied claims and external review of certain claims. Specifically, the relief extended:

• HIPAA time frames: The 30-day period (or 60-day period, if applicable) to request special enrollment.
• COBRA time frames: The 60-day period for qualified beneficiaries to elect COBRA coverage; the date for making COBRA premium payments (which is generally at least 45 days after the day of the initial COBRA election, and a grace period of at least 30 days for subsequent premium payments); and the date for individuals to notify the plan of a qualifying event or disability determination (in general, at least 60 days from the date of the event, loss of coverage, or disability determination).
• Claims procedures time frames: The date within which individuals may file a benefit claim under the plan’s claims procedure, and the date within which claimants may file an appeal of an adverse benefit determination under the plan’s claims procedure.
• External review process time frames: The date within which claimants may file a request for an external review after receipt of an adverse benefit determination or final internal adverse benefit determination, and the date within which a claimant may file information to perfect a request for external review upon a finding that the request was not complete.

In addition to the participant deadline relief above, extended time frames were provided for plan officials to furnish benefit statements and other notices and disclosures required under ERISA, so that plan sponsors have additional time to meet their obligations during the COVID-19 outbreak.

Under the initial relief, an employee benefit plan will not be in violation of ERISA for a failure to timely furnish a notice, disclosure or document that must be furnished during the Outbreak Period, if they act in good faith. This means the plan must furnish the documents as soon as administratively practicable under the circumstances. Good faith acts include use of electronic means of communicating with plan participants who the plan sponsor reasonably believes have effective access to electronic means of communication, including email, text messages and continuous access websites.

The DOL acknowledged in Notice 2021-01 that many plans have already returned to normal compliance procedures for furnishing notices and disclosures, and that notices and disclosures properly furnished without relying on the initial relief do not need to be refurnished. Similarly, to the extent the plan can demonstrate that a notice or disclosure was actually received, it would not need to be refurnished even if it was initially furnished in reliance on the prior relief.

Application of the One-year Limit

Notice 2021-01 clarifies that individuals and plans subject to the initial relief can extend the applicable deadlines until the earlier of:

• One year from the date they were first eligible for relief; or
• 60 days after the announced end of the National Emergency (the end of the Outbreak Period).

On the applicable date, the time frames for individuals and plans with periods that were previously disregarded will resume. In no case will a disregarded period exceed one year.

Examples

The Notice provides the following examples to illustrate the duration of the relief:

• Example 1: If a qualified beneficiary would have been required to make a COBRA election by March 1, 2020, that requirement is delayed until Feb. 28, 2021. This date is the earlier of one year from March 1, 2020, or the end of the Outbreak Period (which remains ongoing).
• Example 2: If a qualified beneficiary would have been required to make a COBRA election by March 1, 2021, that election requirement is delayed until the earlier of one year from that date (that is, March 1, 2022) or the end of the Outbreak Period.
• Example 3: If a plan would have been required to furnish a notice or disclosure by March 1, 2020, the relief would end with respect to that notice or disclosure on Feb. 28, 2021. The responsible plan fiduciary would be required to ensure that the notice or disclosure was furnished on or before March 1, 2021.

In all of these examples, the delay for actions required or permitted that is provided by the Notices does not exceed one year.

Reasonable Accommodations

The DOL recognizes that plan participants and beneficiaries may continue to encounter problems when the relief is no longer available, due to the one-year limit. Accordingly, plan fiduciaries should make reasonable accommodations to prevent the loss of or undue delay in payment of benefits in these cases and should take steps to minimize the possibility of individuals losing benefits because of a failure to comply with pre-established time frames.

• The administrator or other fiduciary should consider affirmatively sending a notice regarding the end of the relief period when individuals are at risk of losing coverage.
• Plan disclosures issued prior to or during the pandemic may need to be reissued or amended if those disclosures failed to provide accurate information regarding the time in which participants and beneficiaries were required to take action (for example, COBRA election notices and claims procedure notices).
• In the case of ERISA group health plans, plans should consider ways to ensure that participants and beneficiaries who are losing coverage under their group health plans are made aware of other coverage options that may be available to them, including the opportunity to obtain coverage through the Exchange in their state.

The DOL also acknowledges that full and timely compliance with ERISA’s disclosure and claims processing requirements by plans and service providers may not always be possible. In the case of fiduciaries that have acted in good faith and with reasonable diligence under the circumstances, the DOL’s approach to enforcement will be marked by an emphasis on compliance assistance, and includes grace periods and other relief.

Application to Non-federal Governmental Plans

While the extension of time frames included in the guidance is not mandatory for non-federal governmental plans, plan sponsors of non-federal governmental plans are encouraged by the applicable federal agencies to provide similar relief to participants and beneficiaries. The Notice states that the Department of the Treasury, IRS, and Health and Human Services have advised the DOL that they concur with the guidance regarding the continuation of relief, citing to a prior bulletin issued by the Centers for Medicare & Medicaid Services (CMS). In the bulletin, which was issued in response to the initial relief, CMS stated its plans to adopt a temporary policy of relaxed enforcement to extend similar time frames otherwise applicable to non-federal governmental group health plans, and their participants and beneficiaries, under applicable provisions of the Public Health Service Act (PHS Act).

Use this comprehensive guide to outline your company’s telecommuting, or work from home, policy and expectations, and educate your employees on best practices for working from home.

*Please note that this guide requires extensive customization to reflect your organization’s policies on telecommuting.

Download here: Employee Work From Home Guide