ParenteBeard Announces Organizational Change for Nonprofit Consulting Affiliate Dewey & Kaye

May 15, 2012

ParenteBeard LLC is pleased to announce that effective May 15, 2012, Dewey & Kaye, the firm’s nonprofit consulting affiliate, will be further leveraged and integrated into ParenteBeard. Executive search and transition services previously offered by Dewey & Kaye will now be part of ParenteBeard’s human resources consulting and administration affiliate company, Vantagen; nonprofit consulting services such as strategic and financial consulting will be handled by ParenteBeard’s newly formed consulting group. This reorganization will enable the firm to further serve clients with a full complement of consulting services.

Dewey & Kaye’s nationally recognized team has provided consulting and executive search services to nonprofits, foundations, community collaborative organizations and government agencies in Pennsylvania and Ohio for over 22 years.

Dewey & Kaye Partner Todd Owens will lead the continued expansion of executive search and transition services as a part of Vantagen.

“Combining forces with Vantagen allows us to build on the passion and commitment to leadership development in the nonprofit sector that we have demonstrated for the past twelve years, as we now can also offer the full complement of human resource consulting and administration services that Vantagen’s team of expert professionals have been providing since 1997,” said Owens.  “We believe we can better position ourselves as a true partner within all areas of Human Resources to our nonprofit clients.”

ParenteBeard’s newly formed consulting group will provide a multitude of services while also working with the public sector and senior living groups to assist with a variety of different client needs.

According to Partner Mark Ross, who will lead ParenteBeard’s consulting practice, “The creation of this consulting group will significantly heighten the value and depth of the services we offer our clients. The combination of our expertise will continue to strengthen our strategic development, planning, strategic alliances, financial sustainability and evaluation services.”

“This strategic change continues to enrich and differentiate our position as a trusted nonprofit consulting advisor,” said Dewey & Kaye Principal Kate Dewey. We are thrilled to be part of ParenteBeard, and recognize this as a great opportunity to grow and evolve as we continue providing clients with a wide variety of consulting services. This is a true example of our commitment to provide exceptional client service.”

About ParenteBeard LLC
ParenteBeard is ranked among the top 25 accounting firms in the U.S. A leader in providing CPA and business advisory services to small businesses, middle market companies, nonprofits and SEC registrants, ParenteBeard has 1,100 professionals located throughout the Mid Atlantic region. As an independent member of Baker Tilly International, ParenteBeard is proud to provide the highest level of service to clients nationally and internationally.

About Vantagen LLC
Vantagen is an affiliate company of ParenteBeard, dedicated to Human Resources Consulting and Administration services.  Their niche practice serves clients located throughout the U.S. and is primarily focused on traditional HR Consulting, Executive Search and Employee Benefits Administration.

Online Enrollment is the New Norm

January 17, 2012

Guardian (www.guardianlife.com) recently spotlighted enrollment trends identified through a national survey.  The findings indicate that online enrollment has more than doubled in the past five years – from 29% in 2005 to 62% in 2010.  Other key findings included the following:

• Nine in ten workers (91%) surveyed rated their online enrollment experience as “very easy” compared with 78% of those using paper.
• Convenience (89%) and time savings (85%) were cited as the top reasons employees prefer online enrollment.
• It’s not just the Millenials that are driving this preference.  The study found that “employees of all ages found value in a consolidated benefits web portal.”

As a benefits administrator, we agree that online enrollment now qualifies as the “new norm”.  It’s not worth arguing accessibility any longer.  The new world of cheap bandwidth and personal computing, smart phones, tablets and web enabled gaming systems has put the web within reach of most employees.  When it’s still a factor, the accessibility issue can be easily solved when online enrollment is paired with a phone enrollment option.

The benefits of being online are significant.  Eliminating paper from the enrollment process streamlines the enrollment process, reduces enrollment steps for employees, reduces processing burdens on organizations and allows for tighter control over the quality and accuracy of enrollment information.  You can easily argue that all of these elements have positive financial impacts.

If you’re not online, let 2012 be the year you find a reason to make getting there a reality.

Source: “Enrollment and the Web: The New Norm”, Benefits & Behavior 2011: Spotlight on Enrollment Trends, The Guardian Life Insurance Company of America.

100% Participation In Dependent Audits Requires “Out of This World” Thinking

January 10, 2012

Dependent audits represent an interesting proposition for employers.  On the one hand, HR (benefits) and Finance are eager to “pull back the curtain” to see what savings can be achieved by cleaning up dependent rolls.  On the other hand, the notion of exposing employees to an audit can be daunting.  It’s perceived as highly intrusive, even insulting, by some employees.  Past practices tend to influence future thinking.  “We can’t even get our people to enroll on time,” is a how the conversation usually starts.  “How in the world would we get them to show us they were married 20 years ago!”

Then along came a little piece of legislation known as health care reform.  With the onset of PPACA, employers are now covering dependents longer.  Thus, we’re finding more employers opting to audit in the short-term as a way of tightening up eligibility and enrollment practices and policies for the long-term.  It makes sense.  If you have to cover dependents longer, might was well do what you can to make sure they are truly eligible for coverage.

But if you audit, will they participate?  The answer is yes, but it requires the right perspective.  What follows is one example of how our client shattered perceptions by conducting an audit that resulted in 100% employee participation.

MOL America, Inc. is a transportation and logistics company headquartered in New Jersey with field employees sprinkled around the country.  The company covers approximately 300 employees and 650 dependents under its benefits plans.  MOL selected Vantagen to serve as its independent third party dependent auditor.  Audit planning began in March 2011.  Audit communications were set to begin in late April with full completion anticipated by early August.

The MOL America audit featured an amnesty period where dependent eligibility definitions were clearly reinforced and employees were provided an opportunity to drop ineligible dependents.  That phase was followed by the Primary Verification Period, the main documentation collection period, as well as Secondary Verification Period whereby targeted communications were issued to employees based on their participation (or lack thereof).  Once these phases were complete and the client signed off on the projected drop scenario, termination notices were issued that afforded the impacted employees with the option of appealing the action.

Results:
The audit wrapped just ahead of the original August target.  By the audit’s conclusion, it achieved 100% employee participation and a 3% reduction in covered dependents.

Success Factors:
They can be boiled down to three:

• Timing. The MOL America audit was launched on the heels of the client’s annual enrollment period.  The client informed employees during the enrollment period that an audit was on the way, however it did not force clients to focus on dependent verification while considering their benefit options.  The client also made sure to time the audit for a period when no other key internal initiatives were taking place.  As a result, the audit achieved “front and center” visibility within the organization.
• Constant contact. From the onset, weekly touch points were scheduled and conducted.  Many weeks, the update took less than 10 minutes to complete, however it provided both our audit team and the employer with a continuous opportunity to learn from and adapt to the audit’s realities.  We also reviewed our standing at the conclusion of each phase and used our experiences to shape our next steps.
• Client involvement. It’s undeniable that audits work better when the formal process can be supported by internal client actions.  Here, the client used reports and email blast content provided by Vantagen to directly reach employees and managers of employees with deadline reminders and other targeted messages.  These internal communications reinforced the formal materials that were mailed to each employee’s home address during each phase.  Client management also directly counseled and advised employees who challenged the need to participate.

Summary
With the right strategy and the right amount of involvement, employers can sanction dependent audits that can shatter upfront, current world perceptions and achieve optimal participation.  The auditor can handle the heavy lifting when it comes to calls, document processing and communication, however it’s the employer’s contributions that can help push participation from OK to exceptional.

Using Merit Pay to Motivate Employees

January 4, 2012

Merit pay is one of the most frequently used methods to pay an employee based on individual performance.  The essential goal of a merit pay program is to link pay to performance in a manner that is consistent with the mission of the organization.  There are generally two conditions required to make the system work.

1. variations in employee performance must be measurable and measured
2. managers must be provided with the necessary tools to determine the appropriate rewards

Merit pay involves giving employees a permanent pay raise based on past performance. Often the company’s performance appraisal system is used to determine performance levels and the employees are awarded a raise, such as a 2% increase in pay. One potential problem with merit pay is that employees come to expect pay increases. In companies that give annual merit raises without a different raise for increases in cost of living, merit pay ends up serving as a cost-of-living adjustment and creates a sense of entitlement on the part of employees, with even low performers expecting them. Thus, making merit pay more effective depends on making it truly dependent on performance and designing a relatively objective appraisal system.

To motivate employees effectively, the size of the merit increase must be significant enough to make a noticeable difference to employees.  Generally speaking, any merit increase of 2% or less is regarded as being inconsequential.  Some studies show that a merit increase of less than 7% is unlikely to have ANY IMPACT on employee performance…yikes!  One alternative more and more companies are turning to in today’s tight economic times is the use of lump sum payments in lieu of a merit increase to base pay.  As a result, the employee receives the pay increase in one payment, hopefully motivating him/her, and the company continues to pay the same base salary, while controlling salary budget costs in the long-run.

When determining the payout to individual employees, several factors can be considered, based on the organization’s culture and budget:

• Where is the employee’s pay in the current salary range for his/her job?
• How well is the employee performing? Has performance increased since the last merit pay?
• Is the employee considered a “critical talent”?
• What is the long-term potential for the employee with the organization?

Ultimately, to be successful, the merit pay program must ensure that awards provided to the best performers will be substantially greater than increases awarded to average, or below-average performers.  Furthermore, especially in today’s economic climate, it is advisable to NOT reward below-average performers at all. A well-designed system will give the employee a personal stake in seeing that their efforts result in increased productivity and success for the organization as a whole.

Shaking off a B.A.D. Hangover Can Make a BIG Impact

December 15, 2011

It’s mid-December.  Prime time for Seasonal Affective Disorder and, for those operating calendar year plans, its sinister cousin: Benefits Affective Disorder or B.A.D..  The days have literally grown shorter while the work days have grown longer.  You’ve bopped between meetings to get renewals analyzed and scrutinized, plan open enrollments, educate employees, line up coverages and lock up deductions.  And health care reform made it all easier, right?

As a result, you’ve got a B.A.D. hangover!  You’re tired, grumpy and ready to go on “benefits cruise control” until at least the early Spring sun can warm your spirits.  But if you do that, you’re missing out on a prime opportunity to make a big benefits impact with your employees.

January represents a great time to launch new benefits communications campaigns.  Think about it.  Maybe you just launched new programs – wellness incentives for example.  But if you showcased these programs during the November/December holiday season, it’s very possible no one was really paying attention.  Work and life may have caused your employees to tune out.  For this reason, if you want to get big value out of these programs, now is the time to amp up your benefits communications.  That’s right.  You’ll make a bigger impact by shrugging off that hangover and communicating more, not less, early in the plan year.

Our Benefits Communications Team is versed in developing customized, targeted campaigns that deliver sound results.  Contact me if you’re ready to put some ideas in motion.