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Welcome to Workforce Today Magazine!
Greetings!
Welcome to the summer issue of the E-Workforce Today magazine.
This issue examplifies the ideals of summer. Below is information on HOT issues like the changes in healthcare as well as GREEN topics like the training funds available for manufacturers!
We hope you enjoy the articles and as always please let us know if there is a topic you are interested in!
Happy reading!
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Health Care Reform: Highlights for Employers by Bill Milne of Weld, Riley, Prenn & Ricci, S.C.
As you are aware, this spring, Congress passed health reform legislation, which will affect
nearly all employers and taxpayers. These changes will be effectuated by two acts: the Patient Protection and Affordable Care Act and the Health Care and Education Affordability Reconciliation Act of 2010, which amends that Act with revisions proposed by the House.
Although there are pending court challenges and Congress will naturally tinker with parts of
these laws before they become effective, significant changes are upon us. Thus, there are several portions of these Acts and implementation dates we felt employers should be aware of:
Effective in 2010:
> Certain small employers can qualify for a tax credit (a dollar for dollar reduction in taxes) if they provide coverage to employees. This change is effective immediately, and initially lasts through the 2013 tax year. After 2013, the credit remains available for two more years, to small employers that purchase health insurance through the state-based exchanges.
> Group health plans and insurers will be prohibited from denying coverage to
dependent children for preexisting conditions or placing lifetime limits on coverage; by 2014, preexisting condition limitations must be removed for everyone.
> Unmarried, adult dependent children who have not reached age 27 by the end of a
given tax year must be permitted to remain on their parents' health plans. Also, coverage for a employee's adult children will not be included in the employee's gross income. Therefore, this change will provide relief for Wisconsin employers who have been addressing the imputed income issues associated with similar
mandates implemented by the State of Wisconsin at the beginning of this year.
> Employers with more than 200 full-time employees and that offer employees enrollment in one or more health benefits plans must automatically enroll new full-time employees in one of its plans (subject to applicable waiting periods) and continue the enrollment of current employees in all health benefits plans the employers offer. Employees must also be given an opportunity to opt out of any coverage.
Effective in 2011:
> A new, Simple Cafeteria Plan, will be available for small businesses- in this case, defined as employers with 100 or fewer employees during either of the two preceding years. This type of plan would be subject to fewer participation restrictions, thus making it easier for smaller employers to provide tax-free benefits to employees. The Simple Cafeteria Plan will also be available to selfemployed individuals.
> Employers will have to include the value of employees' health insurance benefits
on employees' Form W-2s, for 2011 and later tax years.
Effective in 2013:
> An additional Medicare payroll tax for high wage earners- $200,000 for individuals and $250,000 for married couples filing jointly- is applied to income over these amounts. Currently, the $200,000/$250,000 thresholds will not be indexed for inflation.
> Subsidies given to employers that provide prescription drug benefits to Medicare
retirees will be taxed.
> Contributions to health flexible spending accounts will be limited to $2,500 per
year (adjusted for inflation in future years). > A 3.8% tax on net investment income (interest, dividends, rents, certain capital gains) for individuals earning over $200,000 and married couples filing jointly, earning over $250,000, is applied to income in excess of these amounts. Again, these amounts will not be indexed for inflation. Income generated in tax-deferred
retirement accounts, like 401(k) accounts, will not be subject to this tax.
Effective in 2014:
> Most people will be required to have health insurance, and would face penalties
for remaining uninsured. > State-based health care exchanges for small businesses and individuals will be created. Lower income ($43,420 for individuals and $88,200 for a family of four) individuals without employer coverage and small businesses have the option to purchase health insurance through these exchanges. Individuals and small
business may also qualify for tax credits toward purchase of insurance through the
exchanges.
> Applicable Large Employers, which, generally, means businesses that employ at least 50 full-time equivalent employees during the preceding year, must offer a minimum amount of coverage to its employees. (Therefore, employers with 50 or fewer full-time equivalent employees will not be subject to this requirement). If coverage is not offered and at least one employee receives a tax credit to buy insurance, the employer's penalty will be $2,000 per full-time employee; however, the first 30 employees are not included in this calculation. If an employer does offer coverage to its employees, and has at least one full time employee receiving a premium credit, the employer is assessed a $3,000 penalty per employee receiving the credit.
> Employers offering minimum essential coverage and paying a portion of that coverage would have to give qualifying employees a voucher, equal to the value of the employer's contribution to the health plan, which the employee can use to purchase a health plan through the state-based insurance exchange. Qualifying employees are those: who do not participate in the employer's plan; whose required contribution for the employer sponsored coverage is between 8% and 9.8% of household income; and whose gross household income is less than 400% of the poverty level for their families. The penalties described above will not be applied to employees who receive vouchers.
Effective in 2017, employers with more than 100 employees can buy coverage on the state-based insurance exchanges, if permitted by the state.
Effective in 2018, additional (nondeductible) taxes are imposed on high-cost, employers ponsored health coverage ("Cadillac" plans). The tax is 40% of the value of the plan that
exceeds the threshold amount (initially $10,200 for single coverage and $27,500 for family
coverage). The tax is imposed on the insurance company (which, presumably, means the cost
will be passed on to employers and individuals through higher premiums), unless the employer's
plan is self-funded.
This article should not be construed as legal advice and is intended for general informational purposes only. If you have any questions regarding this article, you should
consult your legal counsel.
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Consumer Spending Slides in May 
Consumer spending began to slow in May due to high unemployment,
according to First
Data Corp.'s First Data SpendTrend report.
After a rebound in consumer spending in the first quarter of 2010,
spending growth began to ease up as same-store dollar volume growth was
9.2 percent and transaction growth was up 8.4 percent in May, following
10.2 percent and 9 percent, respectively, in April.
General merchandise stores posted their lowest year-over-year dollar
volume and transaction growth all year in May. Dollar volume growth in
this category was 8.7 percent, a decrease from April's growth rate of
12.4 percent, and transaction growth also declined to 10.2 percent from
11.7 percent in April. The data suggests low-end consumers are getting
squeezed by an uneven economic recovery and high unemployment,
Atlanta-based First Data said.
Unemployment is down in the Milwaukee area, but the area still has
19,500 fewer jobs in April than it did a year ago, according to the
Wisconsin Department of Workforce Development. The Milwaukee metro had a
jobless rate of 8.5 percent in April, down from 9.8 percent in March.
The region had 10,600 more jobs in April than in March.
SpendTrend tracks same-store consumer spending via credit, signature
debit, PIN debit and EBT cards at U.S. merchant locations.
The report shows credit transactions went up 3.3 percent, signature
debit transactions rose 11 percent and PIN debit transactions increased
11.3 percent. Total transactions grew 8.4 percent.
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| Are you interested in learning more about the economic and workforce status of your county? You can view the Department of Workforce Development's County Workforce Profiles here. |
2010 Conference Gives Boost to Northern
Businesses
The 8th Annual Business Conference, sponsored by
the Northwest Wisconsin Workforce Development Board, met at Lakewoods
Resort May 5-6. Over a hundred business people, as well as economic and
workforce development professionals, attended a variety of workshops and
key note presentations.
Solon Springs Merchantile received the Business
of the Year award. News
release
Click to read the article from the Bayfield County Journal.
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April 2010 Data for Wisconsin and the U.S.
Latest Numbers for Wisconsin and US.
Seasonally
Adjusted
Unemployment rate:
NW WI: 12.4%(March 2010)
WI: 8.5%
US: 9.9%
Civilian labor force:
NW WI: 92,251 (March 2010)
WI: 3,052,100
US: 154,715,00
Number Employed: NW WI: 80,811 (March 2010)
WI: 2,792,100
US: 139,455,000
Number Unemployed:
NW WI: 11,440 (March 2010) WI: 260,000
US: 15,260,000
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TRAINING DOLLARS AVAILABLE TO NW WI MANUFACTURERS
The manufacturing industry in the United States, as well as Wisconsin, is undergoing a dramatic transformation. A modern manufacturing facility bears little resemblance to a traditional factory of decades past.
The transformation of manufacturing has profound implications for the incumbent manufacturing workforce and for the new workers that employers demand. In order to operate a modern production facility, manufacturers require workers with advanced skills. Rather than hiring a worker to perform a specific task, employers increasingly need workers who are continually focused on innovation of both products and processes. Modern manufacturing workers require advanced academic, workplace, and technical skills to enable their employers stay competitive. Indeed, even as overall employment in the manufacturing industry has declined, many employers report difficulty finding and hiring the highly-skilled employees they need.
Throughout a series of regional meetings and surveys that took place over six months in 2009, manufacturers were able to identify areas of training need and general concerns about their workforce development. Common themes within the discussion were:
· The need to train for innovation in order to maintain the competitive edge
· The added challenges to small and medium-sized manufacturers who do not have human resource departments or enough experience organizing training programs for their workers
· Hiring employees with adequate foundational skills and competencies
· Matching training providers to business needs since coordination of work and education schedule often conflict
· The challenges to incumbent worker training since rising health care and other costs limit the resources available for incumbent worker training.
The employers and the educational institutions have worked together to obtain funds to begin to address some of the identified needs in the industry. The training programs listed below will be offered in the northwest Wisconsin and region. Employers who are interested in having employees participate in the trainings should contact 1-888-780-4237 x103 or mkay@nwcep.org for further information on dates, locations, and requirements.
· Critical Core Manufacturing Skills
· Blueprint Reading
· Leadership & Business Skills
· Lean Manufacturing
· Lean Implementation:
- Value Stream Mapping
- Five-S System - A-3 Problem Solving
- Quick Change Over
- High Performance Manufacturing
· ISO Preparation
· Machine Tool Operator
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10 Ways to Make Work More Meaningful By Paul Fairlie
We
may be entering the age of less meaningful work. Consider the following: Job
satisfaction levels have been slipping since the 1970s. Social thinkers say the
same thing has been happening with the work ethic. Work attitudes have also
worsened over the years, with fewer people agreeing to the statement "Work is a
person's most important activity."
Behind these
attitudes are tumultuous years in the workplace. The last few decades have seen
organizations go through more frequent, rapid and radical changes. Jobs are
more intense and insecure. Three-quarters of Americans cite money and work as
the leading causes of their stress. Yet, real income remains flat.
This alone
is enough to make people cynical. Now throw in a few corporate scandals and
such global threats as terrorism and climate change and people start asking
serious, existential questions of themselves. Who am I? Why am I here? What
should I be doing with my life?
The meaning of
life is a hot topic. Eckhart Tolle's A New Earth is a best-seller.
Business blogs and magazines are buzzing about meaningful work. Author Malcolm
Gladwell called for more of it in his book Outliers. Even the hard-nosed
consulting firm McKinsey & Co. is extolling the virtues of touchy-feely
rewards in place of pay and bonuses. It makes sense that people are demanding
more meaning in the workplace, since they spend most of their waking hours
there.
All of this
got me wondering. How important is meaningful work? And is it getting harder to
find?
I surveyed
1,400 Americans on nearly 300 job characteristics over five surveys. The
following characteristics were among the top 25 strongest drivers of commitment
and intentions to stay that were also reported at lower levels in
organizations. What was scarce among the strongest drivers of commitment and
intentions to stay was a job that:
· Helps you
to fulfill a life purpose.
· Helps you
to become what you were "meant to be" in life.
· Is a major
source of life happiness (e.g., makes you feel "alive").
· Involves
tasks that you would do for pleasure on your own time.
· Enables
you to do good things in the world.
The message
here is that there is room to improve these aspects of every job, in every
organization. These changes could pay off in higher commitment and retention.
It's not younger or older workers who feel this way. There were few
generational differences, which suggests that these things are equally
important to all generations.
You may also
think that these things are unimportant in a bad economy, when people's jobs
are at stake. Yet, these surveys were conducted during a period of the last
recession which saw some of the deepest dives in employment, GDP and the
S&P 500.
I'm not
predicting a mass exodus of people cashing out to volunteer for Doctors Without
Borders. But if recent work trends continue, we could reach a tipping point.
More people are having an existential crisis of confidence about their jobs,
and perhaps, the nature of work in their lives. They call this transcendence in
existential circles. Zen Buddhists call it a "satori." And it's irreversible.
Once you
lose employees' hearts because they don't feel that what's deeply meaningful to
them (as human beings, not as employees) is present during the workday, you may
lose them for good. And if they stay, they could still withdraw psychologically
and reapply their extra energy elsewhere. In other words, they'll do the
minimum that's expected of them and go home to what really matters.
All is not
lost, however. Organizations can bring more meaning to every job. There are
easy ways and hard ways of doing this. Here are 10 easy ones:
1.
Measure meaningful work on your next employee survey. Make sure your survey
taps the workplace features mentioned above: a job that helps fulfill a life
purpose, a job that helps people be what they are meant to be, etc.
2. Find
out what really matters to employees. Try asking this on your next employee
survey: "If you woke up tomorrow morning with $20 million in the bank and five
years to live, what things would you do for the rest of your life?" Now, find
"low-cal" ways of making work in your organization seem more like these things.
3.
Communicate meaningful work that's already there. Meaning is partly a state
of mind. Employees may already have opportunities for meaningful work that are
not well communicated. Make the connection between individual jobs and the
purpose of the organization.
4.
Connect employees with people who have been changed by your organization.
Invite people to give testimonials at annual meetings and town halls. Start a
"twinning" program among employees and clients. Collect and share client
stories or videos.
5. Ask
your employees how they can have a bigger impact. Conduct surveys and focus
groups. Get ideas and empower employees to implement them.
6.
Enable employees to do philanthropic work outside of work. Donate the time
and money, set up a program and offer a suite of opportunities.
7. Offer
career counseling "plus." Not all development is career-related. People are
human beings before they come to work. Consider what they're trying to
accomplish in their nonwork lives and who they're trying to become. Support
those efforts.
8. Coach
managers to provide better feedback and recognition. These are two "must
haves" of meaningful work that I've identified in my other research, and they're
relatively free. This could be done tomorrow. Recognition is important for
employees to see their impact.
9. Use
meaningful work to attract and recruit people. If you've got meaningful
work in your organization, flaunt it. Review your current strategies for
acquiring talent and make sure the message is there.
10. Make
a pledge about job and organizational redesign. This is a longer-term goal,
but get it on the radar. Revisit job descriptions and reporting lines. Get
employees to brainstorm how they could do their jobs differently. This is at
the heart of "job crafting," a technique from Amy Wrzesniewski at the Yale
School of Management. Don't assume that meaning is inherent only in certain
jobs. Most of them can be imbued with more meaningful features.
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