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HRO TODAY Sept 2013

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Upside NEWS FROM THE WORLD OF WORK Surveys Say Underperforming Management Systems Despite an understanding that talent is a source of competitive advantage, establishing effective performance management programs remains a challenge for most organizations. According to Mercer's 2013 Global Performance Management Survey, just 3 percent of organizations worldwide report their overall performance management system provides exceptional value. The survey includes responses from performance management leaders at more than 1,050 organizations from 53 countries. More options for coverage. Starting in 2014, all Americans will be required to have healthcare coverage or risk paying a penalty. Some employees may wish to purchase individual coverage through the new state and federal marketplaces. A higher probability of being in a consumer-driven health plan. Consumerdriven health plans (CDHPs) continue to rise in popularity and have surpassed HMOs as the second most offered plans by employers. In fact, a growing number of employers are offering CDHPs as the only plan option—44 percent are considering it in the next three to five years. In addition to some commonalities in performance management programs, such as setting employee goals, conducting formal year-end review discussions, and using performance ratings, Mercer's statistical analysis identified key drivers of successful performance management. They include manager skills, executive commitment, calibration, and technology. Topping the list is the skills of managers, specifically how well they set employee goals, provide feedback, evaluate performance, and link performance to critical talent management decisions such as compensation, development, and careers. According to Mercer's survey, roughly one in three organizations around the world say improving managers' ability to have candid dialogue with employees has the greatest impact on overall company performance. More incentive opportunities for exhibiting healthy behaviors. Workers can also expect to see an increasing number of employers providing an incentive related to completion of programs such as HRQs and biometric screenings. Eighty-three percent of employers have such an incentive in place now. Alongside the contribution of managers, organizations with higher levels of executive commitment are more likely to have effective performance management programs. One-on-one performance discussions, formal performance planning, and team accountability are some of the more common practices executives are implementing to direct their teams and achieve desired business results. New eligibility rules. Employers may be making changes to rules that determine which employees are eligible for health coverage, particularly as they evaluate requirements of the "employer mandate" provision of PPACA (which was delayed until 2015). In addition, the recent Supreme Court decision that resulted in federal recognition of same-sex marriages may mean more dependents will now be eligible for benefits coverage. Healthcare Aware Feeling Bottlenecked Workers who plan to automatically default into the same health plan in which they were enrolled the previous year would be wise to rethink that strategy for the 2014 annual enrollment season, according to new research from Aon Hewitt. Employees can expect to see a number of changes to their health benefits driven by rising health costs and the Patient Protection and Affordable Care Act (PPACA). Employees should do their homework this year to understand the impact of these changes, and make informed benefits elections for them and their families. What causes company bottlenecks? Bonitasoft's recent survey of 190 business people identified the principal causes of bottlenecks in their organizations, the biggest impacts those bottlenecks create, and the moves their organizations are making to solve the problems. Some of the most notable changes employees may see include: Cost increase. Aon Hewitt's research shows that most employers plan to subsidize employees' health coverage at the same percentage rate as last year. However, the amount of money employees will need to contribute out of their paychecks is continuing to climb. [8] HRO TODAY MAGAZINE | SEPTEMBER 2013 Programs that promote health awareness and education. Employees can expect to see more employers offering programs that encourage them to take a more active role in managing their health. For example, 75 percent of employers offer health risk questionnaires and 71 percent offer biometric screenings such as blood pressure and cholesterol. Confusing processes (45 percent) and understaffed IT departments (43 percent) were chosen as the main causes for work slowdowns, followed by too many processes, colleagues not meeting deadlines, technology that is too rigid and not enough processes. Asked how bottlenecks negatively impact organizations, 59 percent of the respondents said bottlenecks damage employees' morale, 53 percent said they lead to missed deadlines, 42 percent said they make customers angry, and 36 percent answered loss of revenue. Overall, 67 percent of respondents said they believe that technology can solve their organizations' bottlenecks.

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