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Swipe This Benefits Renewal Timeline

Wow - great to learn there are so many Ted Lasso fans among you all. (Missed last month’s Ted Lasso-flavored article? Catch up here.)


And - I’ve never felt so seen and so called out when one perceptive reader sent me this…



You guys get me! 🙌 


And since you do, you already know that I love to talk HR Operations & Compliance—that’s my wheelhouse. (It’s what I naturally gravitated to when I stopped practicing law and shifted into the HR world.)


Yet, I know that mention of this topic is about as favorable as a visit to the dentist. 😂 When I bring Ops & Compliance into the conversation, I’m often met with, “Fine, let’s just get this over with now because if we don’t, it will be worse later.”


So today, get ready for a benefits and compensation conversation! (I promise to make this as painless, valuable, and FUN as possible).



Use This Timeline to Make Your Benefits Renewal a Breeze


First, let's tackle benefits…


I’ve talked with several of my fractional HR clients who want to get ahead of the curve and start planning their benefits strategy, plan renewals, and open enrollment now.



There’s so much in the chaotic world of HR that is impossible to plan for. One of my mantras is “Plan for what you can”. And a well-planned benefits renewal timeline can save you a lot of headaches in the future!


4-6 months before Open Enrollment

Evaluate Your Broker

Always start with thinking about whether your current broker is meeting your needs. Are they suggesting new approaches to keep your benefits fresh, affordable, and aligned with your strategy? If they’re not helping to make your job easier, it’s time to look elsewhere.

 

3-4 months before Open Enrollment

Get Ready for Renewal

Put together your plan identifying key stakeholders, decision points, and timelines. Collect the data that will help you understand the external market, benchmarking data, trends, and your employees’ needs. Have a few goals or a north star that will guide your decisions throughout the renewal.

 

2-3 months before Open Enrollment

Assess the Quotes

Make time to understand your renewals. Dig in and ask questions about changes to plan design now so you’re not surprised when your employees ask you about them later! You’ll likely be finalizing your plans at the end of this window.


4-6 weeks before Open Enrollment

Plan your Communication Strategy

The earlier you finalize your renewals, the more time you’ll have to communicate changes and promote options to your employees. Don’t miss this team-building opportunity to educate your employees about the value of their benefits through a variety of ways—benefits fair, Q&A sessions, email, slack messages, video clips, etc.


During Open Enrollment

Execute the Plan

→ You’ve planned for this, and now it’s up to your employees. Send reminders, answer questions, and make sure everyone gets the chance to make their choices for the coming plan year.


1-2 weeks after Open Enrollment

Finalize the Data

→ Open enrollment is over, but you’re not done yet! You may need to check data feeds or upload files to make sure you’re getting all the enrollment data to the right places at the right time.


First Pay Period After Open Enrollment

Final Check for Selections

→ We all know people make mistakes. Provide one last check in the process to make sure folks got what they signed up for. Send an email on the first payday after the new plan starts prompting folks to check their paystub and benefits elections. 


New Salary Thresholds You Need to Know About


Now, on to Compensation…



🚨 Did you know that there are changes coming to the Overtime rules?

Yes, indeed! Salary thresholds are increasing. 


🗓️ On July 1, 2024


→ the minimum salary threshold increases to $43,888


→ the highly compensated employee threshold increases to $132,964


🗓️ On January  1, 2025


→ the minimum salary threshold increases to $58,656


→ the highly compensated employee threshold increases to $151,164


This means you may have exempt employees (a.k.a. those not paid overtime) who will become non-exempt employees because they don’t meet the minimum salary threshold, so you will have to start paying them overtime!


🙋 But Paula, what are the overtime rules? Glad you asked!


→ In the US, the Fair Labor Standards Act (FLSA) says every employee working more than 40 hours in a workweek is entitled to overtime pay at 1 and a half times their regular pay rates. Some states and cities provide their own additional requirements for overtime pay.


→ There are rules that exempt employees from this requirement based on the kinds of work they do and whether they meet the minimum salary threshold (which is what’s going up in July and January). You can learn more here and here.


Nothing kills the employee experience faster than an incorrect paycheck, so now is a great time to review your workforce to make sure your employees will be paid appropriately under the new rules.


Also, overtime pay and employee classification mistakes can get expensive very quickly and are high-risk, so talk to your legal counsel to ensure everything is in good standing.

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Image by Bethany Legg

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