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Healthcare Reform: HR executives on anti-depressants! By Suzanne Elshult, Executive Coach wt HRNow

“I need an anti-depressant…confusion and overwhelm!” This group of HR executives sighed in unison as they realized they were in good company. Nothing like a little joint suffering – being an HR leader in this environment can easily feel loney and overwhelming. One of the important takeaways from this session was simply validation: “I am not alone” and it is a fact that no HR leaders are currently receiving authoritative, certain information from brokers and legal counsel. HR executives are getting increasingly nervous. Ambiguity and confusion is likely to be the new constant for the next several years. It is a fact certain that things will look very different a few years from now. “This is going to be HUGE. This is about to become a BIG DEAL!” AND, HR leaders have the opportunity to shape the role they can play and importantly influence strategic directions.

In this session participants started out by challenging themselves to answer this question: “Who do I want to be in the context of healthcare strategy? What imprint and legacy do I want to leave behind?”Here are some of the things the group brainstormed:

  • The “go to” person in our company and in the community
  • Being “in the know” as opposed to the HR executive that gets blindsided by some of the ways the new provisions are being rolled out (for example provisions around part-time employees)
  • The facilitator of strategy and united C-Suite leadership
  • The designer of a messaging framework and communications plan for employees
  • The person that ensures my company maneuvers through the chaos smoothly and diplomatically. There is huge potential for adversarial relationships, scapegoating and alienation.
  • The leader that positions change as an opportunity and helps the organization move forward without knowing the full story. Huge opportunity for HR executives to play a strategic role and up their games
  • Influencers and educators
  • Voice of reason and practicality: maximizing what we have
  • The executive that ensures efficiency and economy
  • The caretaker of the culture, making sure that questions around cultural fit are answered before we turn to tactics

There was significant discussion around what key issues and questions need to be raised with CEO’s and the rest of senior leadership now and there was agreement that these areas are where HR executives need to place their focus right now:

  1. Overall objective? The answer will be different for each organization? Perhaps things are real tight for one organization while another one has and wants to continue to offer rich benefits. Or perhaps we have offered rich benefits in the past and want to take this opportunity to change.
  2. Cost? What plan do you want to offer and does it meet the affordability test? Not being affordable versus being affordable result in totally different sets of problems and opportunities.
  3. Staffing and workforce. What does the picture look like now and how does it need to change?
  4. Messaging. How do we position change and get consistent messaging for our employees and other key stakeholders?

Other provocative questions and issues discussed included:

  • It is likely more people will be covered under healthcare plans, but where they get it may very well be a surprise for all of us.
  • Is this an opportunity to look at and repackage total rewards frameworks? Are there ways we can structure compensation differently to still achieve our goal of providing rich healthcare benefits allowing us to attract the employee we want (pay for it differently, repackage)? An interesting side-comment in that context was that the new inclusion of healthcare in the W-2 can actually reinforce total compensation strategy.
  • We have a Cadillac plan we want to continue to provide, but we will have to pay a huge tax. What does that mean for us and the decisions we need to make.
  • Why shouldn’t we have our employees use the Healthcare Exchange? I don’t want to be the only one in the area taking my organization in that direction? Who else?
  • There is a lot of flux and uncertainty at the state level. As the employer we need to be comfortable with that ambiguity and make sure our employees understand it is not us, but the whole landscape that is in an uncertain state. Some things are actually becoming more ambiguous, not less so.
  • We need to answer the big questions our employees have around options: This is what we offer and this is what the State Exchange offers.
  • For some industries – like hospitality – the impacts are huge and resulting in new business models. What are the implications for staffing and changes to how you structure your workforce? What are the implications for scheduling and productivity?
  • How can we communicate effectively about what is happening when we need an attorney ourselves to help us understand?
  • Is this an opportunity to help us hand over ownership of healthcare to the individual –following the trend in other parts of the world?
  • What can we do in terms of creative plan design, consumer education and a healthier workforce?
  • How do we deal with employees in different regional areas feeling they are being treated unfairly? Will pushback result in some creative opportunities?
  • We have choices in terms of messaging and positioning this change in our organizations.
  • We need to start now and make small changes.

HR executives ARE CHALLENGED-that much is clear! What are you doing to take care of yourself during this time of ambiguity, confusion and potential overwhelm? Are you taking advantage of the intrinsic opportunity to enrich your portfolio and credibility as a leader by positioning yourself in a strategic role? Are you preparing your organization to make wise, strategic decisions moving forward?

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