Tampa Bay ISCEBS

Strategic Planning

for

Human Resource and Employee Benefit Professions

Paul Hackleman, Principal

SST Benefits Consulting

Former Benefits Manager – San Mateo County

Three Biases and a Promise

Impact, not money, is currency Success is a process, not a place / not an end Questions, not answers, shape organizations

Ongoing assistance

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Observations

Organizations are rarely strategic If you don’t know where you are going you might end up somewhere else.

Yogi Berra

Crisis management is commonplace Japanese proverb: Vision without action is a daydream. Action without vision is a nightmare.

Labor-management relations are often adversarial Long-term goals are non-existent Communication is reactive, often an after-thought

The greatest mistake about communication is the belief that it has been accomplished – George Bernard Shaw

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Strategic Planning Characteristics

Clarity of vision Conviction of purpose Constant work and perseverance Collaboration with key stakeholders Communication again and again

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Clarity of Vision

Begin with EducationThe educated differ from the uneducated as much as the living do the dead.

Aristotle

Invest time in creating a visionIf you don’t know where you are going, any direction will do.

Alice in Wonderland

Expressed in writingMission Statement: A long, awkward sentence that describes management’s

inability to think clearly. Scott Adams (Dilbert)

Shared with and supported by othersThe great impediment to action is not discussion but the want of that knowledge

that is gained by discussion, preparatory to action – Pericles

Reviewed / updated again and again5

Conviction of Purpose

Individual / Organizational Recognition of resource commitment Belief in impact (financial / personnel)

Mutual agreement on expected outcome Understand evaluation methodology

Wedded to outcome, not program

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Constant Work and Perseverance

Recognize that:Habits are not acquired or changed quicklyTrue for individuals / more so for organizationsRarely a quick fix Investment up front yields benefits long term

Start simple Aim for early / easy successesFocus on critical few, not trivial manyAnticipate obstacles / frustration / set-backs

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Collaboration

Identify internal / external stakeholders Include stakeholders in process, especially earlyUnderstand stakeholder information needs / varianceNever hoard informationBalance stakeholder concessionsReward / acknowledge contributionsUse successes as stepping-stones to other initiatives

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Spectrum of Change

Issue/Problem

Research/DataGathering

DevelopOptions

Evaluate/Recommend

Communicate/Implement

DevelopActionPlan

Survey-Internal/External

Spectrum of Change

Why Change is Difficult/Often Fails

Issue/Problem

Research/DataGathering

DevelopOptions

Evaluate/Recommend

DevelopActionPlan

Survey-Internal/External

Communicate/Implement

Program Characteristics – Questions to Ask

What low / no cost programs can employers consider? What programs will add value for employees? How can programs continue to attract / retain workers?

Employer responses will determine strategies

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Overview of Presentation

No / Low Cost Programs

Defined Contribution Plans – 401(k) / 403(b) / 457(b)

Telecommuting

Flex Time (work days / work weeks)

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Defined Contribution Programs

How many employers have gone to RFP in last 10 years? How many have a sole provider? How many know what average fees apply to their plans? How many know of / belong to NAGDCA? Changes in industry benefits and services:

Fee reductionsFund improvementsBetter education / guidance / adviceManaged accounts / asset or time based fundsCustomized websites

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Defined Contribution Programs

Changing landscape of Defined Contribution plansLegislative / regulatory changes in managing plans

Small Business Job protection ActEconomic Growth and Tax Relief and Reconciliation Act2003 comprehensive regulatory changesPension Protection Act

Must manage plan as trust (ERISA-like requirements)New Changes (fee disclosure / Roth 457)

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Defined Contribution Programs

New responsibilities / greater cost to managePlan assets pay for plan responsibilities

Legal feesConsultant feesEducational feesAdministrative expenses

Development of budgets Incorporation into RFPs or renegotiation of contracts

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Defined Contribution Programs

How many employers have recently reviewed fees?Example of fee reductions

Employee with $25K and 35 career years7% return and .5% in fees = $227,0007% return and 1.5% in fees = $163,0001% in fee difference reduces account balance at retirement by:

28%

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Defined Contribution Programs

How many employers annually review fund performance?Fund performance characteristics

Share classSharpe ratiosMorningstar ratingsFixed stable value fund returns / underlying assets Implementation and monitoring of asset / target date fundsCDSC and other fees

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Defined Contribution Programs

Non fund plan enhancementsService characteristics:

More frequent / improved on-site programsCustomized websitesRobust educational programs (face-to-face / online / tutorial)Free or low cost investment advice servicesProvider managed special services (Unforeseen Emergencies,

Loans, QDROs, Catch-ups)Plan document maintenancePerformance standards and guaranteesFinancial planning

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Defined Contribution Programs

Educational services for trusteesNAGDCA International Foundation of Employee Benefit PlansOn-site training (consultant / provider / other)Development of budget

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TelecommutingTelecommuting

Working from remote location (home / office)Advantages to employer

Reduction of office space / cost ($300,000) Improved employee productivityEnhanced workforce moraleReduction of impact on community transportation

Challenges for employerSupervision (observation vs. performance outcome)Telecommuters peersDevelopment of program metricsAssessing occupations suitable for telecommutingRecognizing departmental differencesDetermining equipment usageLiability policies (workers’ comp)

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Telecommuting

Advantages to employeeReduced transportation time / costConvenience of at-home work

Challenges to employeesBlurring work / homeRedefining relationships with supervisor / peersAbsences of professional / social networkingPreparation for telecommuting activities

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Telecommuting

Preparation for Telecommuting ProgramDevelopment of clear policies / expectationsDetermining length of telecommutingProvision of training

TelecommuterNon-telecommuterSupervisor

Clear evaluative metricsEstablishment of work activities / objectives

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Telecommuting

Available Material:Telecommuting AgreementEnrollment FormTelecommuting Policy / ProceduresSafety ChecklistTelecommuting ScheduleChecklist for SupervisorsWork AgreementSupervising Telecommuters

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Flexible Time Arrangements

Changes to workWeek (4-10s / 9-80s)Hours (early / late shifts)Work relationships (work / sharing programs)

Advantages to employerModification of hours of operation for customers Impact on workforce morale / productivityPotential impact on office space / cost

Challenges to employerDetermining suitable occupational categoriesDefining eligibility criteriaSharing equipment

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Flexible Time Arrangements

Many of the same advantages / challengesPossible recipients / eligibility / metricsClarity of objectives / desired outcomesDevelopment of metrics before initiation

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Programs

All areas of programs represent:No / little cost to employerHigh value to employeeDifferentiator for attracting / retaining employees

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Contact Information

Paul HacklemanSST Benefits Consultingpaulhackleman@sstbenefits.com650-576-7125

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Questions?Notes:

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Presentation

To download this presentation and the telecommuting handouts go to:www.tampaiscebs.org

Thank you for attending!

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