Why Health Care Reform Is Necessary

It’s a deliberately provocative title. And this is not an article about which reform is best for our country.

But…

The Department of Labor just came out with their statistics regarding benefits paid by employers.

The cost of medical benefits to private employers has doubled in the past 10 years.

In March 1999, employers paid an average of $1.03 per employee per hour for medical benefits (about 5.4% of total compensation)

In March 2009, employers paid an average of $2.00 per employee per hour for medical (about 7.3% of total comp).

And based on my work with small and medium-sized businesses, the quality of those benefits has declined dramatically in the past 10 years (along with huge increases in deductibles, co-pays, etc.).

Twice the cost with half the benefits. All underwritten by private businesses.

Something must be done.

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Management & Leadership Trends 2nd Half 2009

Last week, I gave a presentation in Las Vegas on what I perceive to be the significant trends for managers and leaders during the last half of this year – check it out!

Avoiding EFCA and Leading Better

The EFCA is designed to make it easier for employees to organize into a union. Although the bill has lost some momentum recently, the possibility of your business turning into a union shop is stronger now than at any time since the NRLB was enacted in 1935.

If you don’t want your workforce subject to the demands of a union, what do you do?

In 2008, Kenexa Research Institute published a report of a study made of 10,000 U.S. workers. Each participant was asked to agree or disagree with a list of statements about their employers. A significant percentage of those favoring unions responded negatively. Although there were also negative responses from the employees who were not in favor of unions, the number of negative responses was substantially lower. The following are statements for which the “pro-union” employees had a significantly more negative view as compared with employees who did not favor unions:

  1. My organization shows a commitment to ethical business decisions and conduct.
  2. I have confidence in my company’s senior leaders.
  3. When my company’s senior management says something, you can believe it is true.
  4. Where I work, ethical issues and concerns can be discussed without negative consequences.
  5. My manager treats me fairly.
  6. Senior management is committed to providing high quality products and services to external customers.
  7. My company enables people from diverse backgrounds to excel.
  8. My manager treats me with respect and dignity.
  9. Management shows concern for the well-being and morale of team members.
  10. Senior management demonstrates that employees are important to the success of the company.
  11. I feel free to try new things on my job, even though my efforts may not succeed.
  12. My company supports employees’ efforts to balance work and family/personal responsibilities.

How do you know if your employees agree or disagree with those statements? Many employers believe wrongly that their employees are satisfied, but with little evidence to back that up. Remember, employees will tell you what they think you want to hear.

Get an employee assessment/360 degree survey done right away. At a minimum, it will provide a road map to show you how to improve your business.

And at most, it may help you avoid unionization of your workers.

EFCA: What Employers Can Do

The Employee Free Choice Act has been introduced in Congress, with plenty of vocal proponents and opponents.

The bill has two main elements:

  1. It would give workers the option of forming unions by getting a majority of workers to sign cards to join without having to hold a secret ballot election. (Current law leaves it up to employers to decide whether workers must hold an election or can organize via “card check.”)
  2. If employers and workers cannot reach a contract within 120 days, a government arbitrator intervenes and sets terms.

The possibility of many non-union businesses becoming unionized is real. So what can employer do? The best advice I’ve seen yet comes from Mark Mathison and Abigail Crouse of Gray Plant Moody in this article here. I’ve summarized their excellent suggestions:

  1. Adopt an Internal Position Statement on Unions and Labor Relations
  2. Conduct An Employee Issue and Satisfaction Audit
  3. Ensure that Communication Lines are Open and that Managers are Responsive to Employee Issues
  4. Review Employment Policies and Practices

Further, say Mathison & Crouse, it is important to audit for actual employment practice and policy enforcement within the organization because disparate enforcement adversely affecting unions or employees’ labor law rights can also be unfair labor practices with substantial negative impact in critical situations.