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Shorts
September 2001
by Dr. Lynne
Curry
Question:
I just landed a new job and was thrilled because I finally got
health insurance. So I took care of some things I’ve needed for
a long time, like braces and birth control pills and a
prescription to help me lose weight. Then I found out that this
health plan is totally crappy, that my employer’s policy makes
me pay for half of all the dental care and won’t pay at all for
my birth control pills and weight loss drugs. I feel like my
employer wasn’t up front with me when they told me I had medical
coverage and a "really good plan". Is this legal? What’s
the deal?
Answer:
More and more employers require that employees pay fifty percent
of their health insurance costs on optional services like
orthodontia. Before you get too ticked off at your employer, you
need to realize what’s happening. As health insurance premiums
continue to spiral upwards, employers who want to provide
employees more health benefits then they can afford seek ways to
cost-share with employees or completely drop expensive coverages
such as dental or preventative care. Further, your employer doesn’t
control your insurance company – they only have the choice to
drop one insurance carrier and select another one.
You can protest
being denied reimbursement for your birth control pills, however,
and you may win. In a case decided this past June, a U.S. District
Court in Washington ruled that insurers who refused to pay for
contraceptives illegally discriminate against women. Although the
9th U.S. Circuit Court of Appeals hasn’t yet reviewed
this trial court decision, state legislative bodies in states such
as Texas have since passed laws requiring insurance companies to
pay for contraceptives.
Finally, so you
don’t get burned again, call your insurance carrier and ask them
to give you clear guidance on your coverage.
Question:
Our business is a tiny one but we need employees to help us grow.
We can’t afford to pay our employees what larger companies can
or to provide them health insurance benefits. As a result, a lot
of our employees leave us after six months to a year and go
elsewhere. What can we do to keep our best employees with us?
Answer:
Employees work for psychological benefits as well as for cash. If
you want to keep employees with you and you lack the ability to
pay large salaries, give your employees other benefits equally as
important.
First, give your
employees flexibility. Does one of your employees want to start
work at 9 a.m. rather 8 so he can take his children to school? Let
him. Does another of your employees want to take only a half hour
lunch so she can commute at 4:30 rather than 5 and get a head
start on rush hour traffic? Let her. Do you have an hourly
employee who wants to work 32 rather than 40 hours so she can
spend more time coaching a soccer team? If it doesn’t disrupt
your business, why not let her? Many employees value the chance to
balance their personal and work lives far more than slightly
higher salary dollars.
Second, give your
employees the chance to "own" their jobs and your
company. If you can’t pay your employees in dollars, can you
offer them shares of company stock or a chance to participate in a
profit-sharing program should your business increase in
profitability? Can you give your employees more decision-making
power so they feel in charge over issues that matter to them?
Employers who relax their supervisory structure and let employees
participate in ownership and decision-making often "buy"
longevity.
Third, offer your
employees advancement and training. Companies that invest in their
employees’ growth and careers generally receive a healthy bonus
in employee loyalty. So give your exceptional employees special
assignments and on-the-job or paid training opportunities. If you
find your best employees value training and the chance to take on
higher responsibilities, try sharing the wealth with all your
employees. Make it your goal to give every one of your employees
the most interesting assignments you can. Companies that offer
employees challenge or at least an occasional change of pace reap
huge benefits.
Fourth, treat
your employees well. Praise them in front of their peers. Listen
to them when they offer you ideas. Act promptly on issues that
concern them. Employees stay longest with employers who value them
and prove it daily.
Finally, when you
next hire, look for employees who value intangible benefits over
salary dollars. Small businesses that employ those who value
salary above all other factors fight a losing battle. If you can’t
out pay your competition, look for employees who value the
non-monetary benefits you can provide – and pay them everything
you can in both their cash and their psychological paychecks.
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