Post on 23-Jan-2016
description
Tampa Bay ISCEBS
Strategic Planning
for
Human Resource and Employee Benefit Professions
Paul Hackleman, Principal
SST Benefits Consulting
Former Benefits Manager – San Mateo County
Three Biases and a Promise
Impact, not money, is currency Success is a process, not a place / not an end Questions, not answers, shape organizations
Ongoing assistance
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Observations
Organizations are rarely strategic If you don’t know where you are going you might end up somewhere else.
Yogi Berra
Crisis management is commonplace Japanese proverb: Vision without action is a daydream. Action without vision is a nightmare.
Labor-management relations are often adversarial Long-term goals are non-existent Communication is reactive, often an after-thought
The greatest mistake about communication is the belief that it has been accomplished – George Bernard Shaw
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Strategic Planning Characteristics
Clarity of vision Conviction of purpose Constant work and perseverance Collaboration with key stakeholders Communication again and again
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Clarity of Vision
Begin with EducationThe educated differ from the uneducated as much as the living do the dead.
Aristotle
Invest time in creating a visionIf you don’t know where you are going, any direction will do.
Alice in Wonderland
Expressed in writingMission Statement: A long, awkward sentence that describes management’s
inability to think clearly. Scott Adams (Dilbert)
Shared with and supported by othersThe great impediment to action is not discussion but the want of that knowledge
that is gained by discussion, preparatory to action – Pericles
Reviewed / updated again and again5
Conviction of Purpose
Individual / Organizational Recognition of resource commitment Belief in impact (financial / personnel)
Mutual agreement on expected outcome Understand evaluation methodology
Wedded to outcome, not program
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Constant Work and Perseverance
Recognize that:Habits are not acquired or changed quicklyTrue for individuals / more so for organizationsRarely a quick fix Investment up front yields benefits long term
Start simple Aim for early / easy successesFocus on critical few, not trivial manyAnticipate obstacles / frustration / set-backs
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Collaboration
Identify internal / external stakeholders Include stakeholders in process, especially earlyUnderstand stakeholder information needs / varianceNever hoard informationBalance stakeholder concessionsReward / acknowledge contributionsUse successes as stepping-stones to other initiatives
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Spectrum of Change
Issue/Problem
Research/DataGathering
DevelopOptions
Evaluate/Recommend
Communicate/Implement
DevelopActionPlan
Survey-Internal/External
Spectrum of Change
Why Change is Difficult/Often Fails
Issue/Problem
Research/DataGathering
DevelopOptions
Evaluate/Recommend
DevelopActionPlan
Survey-Internal/External
Communicate/Implement
Program Characteristics – Questions to Ask
What low / no cost programs can employers consider? What programs will add value for employees? How can programs continue to attract / retain workers?
Employer responses will determine strategies
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Overview of Presentation
No / Low Cost Programs
Defined Contribution Plans – 401(k) / 403(b) / 457(b)
Telecommuting
Flex Time (work days / work weeks)
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Defined Contribution Programs
How many employers have gone to RFP in last 10 years? How many have a sole provider? How many know what average fees apply to their plans? How many know of / belong to NAGDCA? Changes in industry benefits and services:
Fee reductionsFund improvementsBetter education / guidance / adviceManaged accounts / asset or time based fundsCustomized websites
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Defined Contribution Programs
Changing landscape of Defined Contribution plansLegislative / regulatory changes in managing plans
Small Business Job protection ActEconomic Growth and Tax Relief and Reconciliation Act2003 comprehensive regulatory changesPension Protection Act
Must manage plan as trust (ERISA-like requirements)New Changes (fee disclosure / Roth 457)
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Defined Contribution Programs
New responsibilities / greater cost to managePlan assets pay for plan responsibilities
Legal feesConsultant feesEducational feesAdministrative expenses
Development of budgets Incorporation into RFPs or renegotiation of contracts
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Defined Contribution Programs
How many employers have recently reviewed fees?Example of fee reductions
Employee with $25K and 35 career years7% return and .5% in fees = $227,0007% return and 1.5% in fees = $163,0001% in fee difference reduces account balance at retirement by:
28%
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Defined Contribution Programs
How many employers annually review fund performance?Fund performance characteristics
Share classSharpe ratiosMorningstar ratingsFixed stable value fund returns / underlying assets Implementation and monitoring of asset / target date fundsCDSC and other fees
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Defined Contribution Programs
Non fund plan enhancementsService characteristics:
More frequent / improved on-site programsCustomized websitesRobust educational programs (face-to-face / online / tutorial)Free or low cost investment advice servicesProvider managed special services (Unforeseen Emergencies,
Loans, QDROs, Catch-ups)Plan document maintenancePerformance standards and guaranteesFinancial planning
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Defined Contribution Programs
Educational services for trusteesNAGDCA International Foundation of Employee Benefit PlansOn-site training (consultant / provider / other)Development of budget
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TelecommutingTelecommuting
Working from remote location (home / office)Advantages to employer
Reduction of office space / cost ($300,000) Improved employee productivityEnhanced workforce moraleReduction of impact on community transportation
Challenges for employerSupervision (observation vs. performance outcome)Telecommuters peersDevelopment of program metricsAssessing occupations suitable for telecommutingRecognizing departmental differencesDetermining equipment usageLiability policies (workers’ comp)
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Telecommuting
Advantages to employeeReduced transportation time / costConvenience of at-home work
Challenges to employeesBlurring work / homeRedefining relationships with supervisor / peersAbsences of professional / social networkingPreparation for telecommuting activities
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Telecommuting
Preparation for Telecommuting ProgramDevelopment of clear policies / expectationsDetermining length of telecommutingProvision of training
TelecommuterNon-telecommuterSupervisor
Clear evaluative metricsEstablishment of work activities / objectives
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Telecommuting
Available Material:Telecommuting AgreementEnrollment FormTelecommuting Policy / ProceduresSafety ChecklistTelecommuting ScheduleChecklist for SupervisorsWork AgreementSupervising Telecommuters
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Flexible Time Arrangements
Changes to workWeek (4-10s / 9-80s)Hours (early / late shifts)Work relationships (work / sharing programs)
Advantages to employerModification of hours of operation for customers Impact on workforce morale / productivityPotential impact on office space / cost
Challenges to employerDetermining suitable occupational categoriesDefining eligibility criteriaSharing equipment
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Flexible Time Arrangements
Many of the same advantages / challengesPossible recipients / eligibility / metricsClarity of objectives / desired outcomesDevelopment of metrics before initiation
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Programs
All areas of programs represent:No / little cost to employerHigh value to employeeDifferentiator for attracting / retaining employees
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Contact Information
Paul HacklemanSST Benefits Consultingpaulhackleman@sstbenefits.com650-576-7125
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Questions?Notes:
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Presentation
To download this presentation and the telecommuting handouts go to:www.tampaiscebs.org
Thank you for attending!
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