5 % 36 % 39 % Health Care Trends PART Premium Increases Were Relatively Small. Smaller Organizations Are Impacted More by Uncertainty

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1 Key Health Care and Human Resources Trends Moving into 2018

2 2017 has been a year of change for health insurance. Some important trends have emerged that could reshape how you plan your benefits and your organization. Here are some of the key factors that could affect your small business. PART 1 Health Care Trends 2017 Premium Increases Were Relatively Small 5 % Thirty percent of Group Benefit Administrators (GBAs) reported their health insurance premiums increased only by a small amount, 5 percent or less. The premium increases were similar to Uncertainty Could Lead to Fewer Group Plans While premium increases have been steady over the past couple years, GBAs are worried about the future. 9 % of GBAs reported that uncertainty over health insurance regulations and premiums had an impact on their future strategy for group health benefits. Uncertainty over the state of health insurance could lead to organizations dropping their plans in the future. Ten percent of GBAs are unsure whether they ll continue coverage in 2018 and 18 percent are unsure whether they ll still offer coverage in Smaller Organizations Are Impacted More by Uncertainty Health care ambiguity is a much bigger concern for smaller vorganizations than larger ones. 6 % of organizations with between three to 25 employees say uncertainty is impacting their future strategy about whether or not they will offer benefits. Only 9 percent of GBAs from large organizations reported the same. Small organizations also have lower satisfaction ratings with their insurance options and costs compared to large organizations. HSA Growth Stalls; Especially With Smaller Organizations The proportion of organizations offering HSAs stayed the same compared to Survey results suggested smaller and mid-sized organizations aren t adding HSAs as a new benefit. 2 Key Health Care and Human Resources Trends Moving into 2018

3 PART 2 Hiring Trends Hiring Remains Strong Demand for workers grew compared to last year. 60 % of employers plan on hiring fulltime staff versus 50 percent in Thirty-six percent of employers plan on hiring parttime employees, an increase from 29 percent in Hiring Strong Across All Sectors Employers in all 1 national industry sectors plan on increasing staff levels for the final quarter of Hiring is also growing in all four regions of the United States. 2 + Demand Grows for Temporary/ Contract Workers 51 % of employers planned to hire temporary or contract workers in 2017, up from 47 percent in Employers noted that they like the flexibility of temporary workers versus permanent staff. However, 6 percent of employers plan on transitioning temporary workers into permanent positions, a sign of the strong economy. More Employees Are Quitting With the current strong economy, employees feel more confident about leaving jobs. In 2017, employees were quitting jobs at the highest rate in the past decade. 4 Employers should review their benefits and salaries to make sure they re competitive in order to retain talent. Employees Willing to Return to Former Employees Nearly 40 % of employees would consider returning to a former employer. Welcoming back old employees could be a way to handle the tight labor market. Seventy-six percent of HR professionals say their organization is more welcoming of former employees than in the past. 5 Key Health Care and Human Resources Trends Moving into 2018

4 PART Salaries and Benefits Salaries Grew for Most Employees Salaries grew by percent in Hourly employees, salaried employees and officers/executives all saw the same average percent salary increase. Companies predict salary growth will be roughly the same in 2018,.1 percent. 6 Fewer Organizations Pay Bonuses % While salaries have grown compared to 2016, fewer organizations are paying out bonuses % of organizations paid bonuses to exempt employees in 2017, a decrease from 2016, when it was 54. percent. 7 Employers Believe Health Benefits Matter for Retention 74 % of GBAs believe that offering quality health benefits is necessary to attract and retain quality employees, while only 6 percent disagree. Sixty-six percent of GBAs also believe that supplemental benefits are necessary for attracting quality employees. Dental, vision, disability and life insurance were rated the most valuable supplemental benefits. Employees Receive More PTO, but Not Using It All White-collar American workers received an average 22.6 paid vacation days throughout 2016, an increase of 0.7 days from the previous year. However, employees only used 16.8 of their vacation days and left nearly a week of PTO unclaimed. 8 4 Key Health Care and Human Resources Trends Moving into 2018

5 PART 4 Workplace of the Future Use of Artificial Intelligence for Hiring Process Companies, such as Unilever, began using artificial intelligence for their hiring process to screen applicants for entry-level jobs, rather than having representatives screen resumes and handle initial interviews. Unilever reported greater costefficiency and more diversity with their hires by using AI. 9 Generation Z Joins the Workforce 2017 was the first full year that members of Generation Z, those born after 1998, could participate in the workforce. This will add one more dynamic as this new generation interacts with baby boomers, Generation X and millennials. genz Rethinking the Annual Performance Review Only 4 percent of HR managers think their employee review system is effective at measuring performance. 11 It could be time to replace the annual performance review system with something more effective. More frequent feedback could be a solution. 4 % of engaged employees receive feedback at least twice a week. 12 Working From Home More Automation? % of American workers report the desire to work from home at least some of the time. Roughly 50 percent of jobs could be handled with some telecommuting. However, only 7 percent of employers allow employees to work from home. While this number is growing, it s still below what employees want. 10 Roughly 45 percent of the jobs people are paid to perform today could be fully automated. Sixty percent of all occupations could see a sizable amount, 0 percent or more, of its work becoming automated. 1 Will robots be the workforce of the future? 5 Key Health Care and Human Resources Trends Moving into 2018

6 SOURCES 1. Career Builder. (July 2017). 60 Percent of Employers Plan to Hire Full-time, Permanent Employees in the Second Half of Retrieved from: 2. Atlantic Group. (September 2017). Hiring Trends Heading into 2018? Retried from: Career Builder. (January 2017). Forty Percent of Employers Plan to Hire Full-Time, Permanent Employees in 2017, CareerBuilder s Annual Job Forecast Finds. Retrieved from: 4. Bureau of Labor Statistics. (October 2017). Job Openings and Labor Turnover Survey. Retrieved from: 5. Workplace Trends. (September 2015). The Corporate Culture And Boomerang Employee Study. Retrieved from: the-corporate-culture-and-boomerang-employee-study/ 6. Society for Human Resource Management. (July 2017) Salary Increase Budgets Expected to Rise % in the U.S. Retrieved from: 7. Human Resources Today. (September 2017) Compensation Budgeting Forecast Part 2: Trends in Incentive Compensation. Retrieved from: 8. Bloomberg. (May 2017). Americans Are Taking More Paid Vacation Days. Retrieved from: americans-are-taking-more-paid-vacation-days 9. Business Insider. (June 2017). Consumer-Goods Giant Unilever Has Been Hiring Employees Using Brain Games And Artificial Intelligence And It s A Huge Success. Retrieved from: Global Workplace Analytics. (June 2017). Latest Telecommuting Statistics. Retrieved from: telecommuting-statistics 11. NPR. (September 2016). Yay, It s Time For My Performance Review! (Said No One Ever). Retrieved from: yay-its-time-for-my-performance-review-said-no-one-ever 12. Bitly. (June 2017). 8 Biggest HR Trends To Follow In Retrieved from: 1. McKinsey & Company. (July 2016). Where Machines Could Replace Humans And Where They Can t (Yet). Retrieved from: 6 Key Health Care and Human Resources Trends Moving into 2018