HR corner

New FMLA poster and employer guide ........................................1

Health outcomes

Creating an award winning wellness program .................3

Legal and compliance

IRS announces HSA inflation adjustments for 2017 ...........................4

PPACA information reporting reminder: June 30 deadline for electronic delivery of IRS information returns .......................5

New study says while millennials are happy at work, they keep looking for another job ..............................................6

Five recruiting strategies for a new generation ................................................7

Webcasts .................................................9

Key contacts .........................................10

HR FocusJune 2016

Continued on page 2

HR cornerNew FMLA poster and employer guideBy: Marina A. Galatro, PHR-CA, SHRM-CP Senior HR Consultant, HR Partner

Covered employers1 are required to display (and keep displaying) a poster summarizing the major provisions of the Family and Medical Leave Act (FMLA). The poster, known as WH1420 or “general notice” must be displayed in a conspicuous place where both employees and applicants can see it. The poster and the text must be large enough to be easily read.

If an FMLA-covered employer has any eligible employees, it must also provide this general notice to each employee by including it in employee handbooks or by distributing a copy to new employees. In either case, electronic distribution is acceptable.

In April, the U.S. Department of Labor (DOL) released a new FMLA poster (WH1420a) dated April 2016. The new poster is reformatted, colorful and contains additional information on service member caregiver leave, intermittent leave and use of accrued paid leave, as well as new information about requesting FMLA leave.

According to the DOL, the February 2013 version of the FMLA poster can still be used to fulfill the posting requirement. However, if you use the earlier version, consider posting the new version at all locations, even if there are no eligible employees. Note that as of May 1, the new poster has not been translated into Spanish; therefore, posting the DOL’s Spanish version from February 2013 will suffice.

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HR Corner – continued from page 1

On April 25, the DOL announced the release of a new Employer’s Guide to the Family and Medical Leave Act. The 76-page guide covers FMLA administration from beginning to end, including:

� Covered employers and notice requirements

� When an employee needs FMLA leave

� Qualifying reasons for leave

� The certification process

� Military family leave, including military caregiver leave

� FMLA scheduling, leave calculation, substitution of paid leave, maintenance of benefits

� Recordkeeping requirements

� Interaction with other federal and state laws and employer’s policies

The Employer Guide includes The Employer’s Road Map to The FMLA, which is colorful and appealing and provides links to FMLA regulations, DOL forms and notices. This a great guide to use as a reminder of the FMLA basics.

1 Electronic Code of Federal Regulations, Title 29 Subtitle B Chapter V Subchapter C Part 825 § 825.104 Covered employer. An employer covered by FMLA is any person engaged in commerce or in any industry or activity affecting commerce, who employs 50 or more employees for each working day during each of 20 or more calendar workweeks in the current or preceding calendar year. Employers covered by FMLA also include any person acting, directly or indirectly, in the interest of a covered employer to any of the employees of the employer, any successor in interest of a covered employer, and any public agency. Public agencies are covered employers without regard to the number of employees employed. Public as well as private elementary and secondary schools are also covered employers without regard to the number of employees employed.

3 HR Focus 2016

Health outcomes Creating an award winning wellness program

� Create an evaluation plan before implementation. Create measurable goals and plan a multi-year strategy before beginning the program. Use a mix of value of investment (VOI) and return on investment (ROI) metrics.

� Celebrate employee/participant success and provide encouragement. Be sure to encourage employees when they are struggling so they continue to feel supported and engaged.

� Secure senior leadership support. Visible leadership participation in program activities is a great encouragement for employee participation.

� Survey employees or solicit feedback. Create a program employees want to participate in.

� Integrate wellness into the overall benefit strategy. Foster intrinsic motivation that allows small steps toward a more healthful life.

Here’s a list of the most well-known national awards, along with a brief description and link to more information.

Sponsoring Organization

Name of Award Award Description Website

American Heart Association

Fit Friendly Worksite

Recognizes employers who create a culture of physical activity and health in the workplace

https://volunteer.heart.org/apps/fitfriendly/default.aspx

C. Everett KoopNational Health Award

Recognizes programs that demonstrate health improvement and proof of net savings

http://thehealthproject.com/

National Business Group on Health

Best Employers for Healthy Lifestyles Award

Distinguishes the best workplace well-being initiatives that are comprehensive, innovative and effective

https://www.businessgrouphealth.org/bestemployers/

UnitedHealthcareWell Deserved Award

Rewards employers who implemented innovative, industry-leading worksite wellness programs that helped improve their employee's health and well-being

Contact local UHC representative for more information

Alliance for Workplace Excellence

Health and Wellness Seal of Approval Award

Recognizes employers committed to employee health and wellness and who implemented innovative programs that include education and health assessments

http://www.excellentworkplace.org/ awards.html

WELCOAWell Workplace Award

Rewards employers who meet WELCOA’s 7 Benchmarks of Success

https://www.welcoa.org/services/recognize/ well-workplace-awards/

Employers with workplace well-being programs understand the value of a healthy workforce. Beyond potential medical cost savings, these programs can boost employee morale, productivity, loyalty and increase brand equity.2 Why not start creating an award-winning wellness program today?

1 https://mbaileygroup.com/blog/8-award-winning-companies-share-secret-successful-wellness-program/ 2 http://blog.wellable.co/2015/07/22/5-employee-wellness-recognition-awards-worth-winning/

The investment a firm makes in employee health and well-being isn’t always financial. It can be time and care. The initial money-saving but time-taking step requires finding volunteers who can devote some of their time to your program. Then, to reward your volunteers’ hard work (and also help you attract new volunteers!) recognize them with awards; publicize their efforts. Awards to recognize workplace wellness programs and participants are offered by numerous non-profits, associations and insurance carriers — both locally and nationally. Employers who meet the award criteria can apply, but what exactly does it take to win?

Here are some tips from award-winning employers:1

� Involve staff or create a committee with a passion for wellness. Allow multiple points of view to inspire creativity and continuously improve the program. Committee members can also help communicate the program to other employees and answer questions.

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Legal and compliance IRS announces HSA inflation adjustments for 2017

On April 28, 2016, the IRS announced the health savings accounts (HSA) inflation adjustments for 2017. By law, the IRS must publish the annual inflation adjustments for HSAs no later than June 1 for the following calendar year. This chart summarizes the changes for 2017.

Calendar Year 2016 Calendar Year 2017

Self-only Family Self-only Family

Annual Contribution Limit $3,350 $6,750 $3,400 $6,750HDHP Minimum Annual Deductible $1,300 $2,600 $1,300 $2,600HDHP Maximum Out-of-Pocket Limit $6,550 $13,100 $6,550 $13,100Catch-up Contribution $1,000

The Annual Contribution Limit is the maximum amount of tax-favored contributions that can be made to an individual’s HSA for a calendar year. Contributions from all sources are aggregated when determining whether the limit is met. An individual may incur excise taxes on excess contributions. Catch-Up Contributions increase the Annual Contribution Limit for individuals 55 or older. The Catch-Up Contributions Limit is not inflation-adjusted. When enacted, the limit was set at $500 for 2004, with $100 annual increases. In 2009, it reached the current $1,000 maximum.

The HDHP Minimum Annual Deductible and Maximum Out-of-Pocket Limit refer to features that a health plan must have in order to qualify as a HDHP. Coverage under an HDHP is one of the conditions an individual must meet in order to be eligible for tax-favored HSA contributions. The limits on these items are also inflation-indexed, with the potential to change each year. Employers that maintain HDHPs need to know these adjustments so that they can make any changes needed for their plans to remain HDHPs.

The IRS announces the adjustments for HSAs much earlier in the year than it announces the adjustments for other types of benefit programs. (Inflation adjustments for most plans are usually announced in October or November. A chart of those limits appears in the Willis Towers Watson Health and Welfare Calendar, available from your Willis Towers Watson representative.) The earlier timing of the announcement for HSAs is mandated by legislation that Congress passed at the end of 2006. The legislation revised the provisions governing HSAs so that the IRS now must publish the annual adjustments no later than June 1 for the following calendar year.

On April 28, 2016, the IRS announced the health savings accounts (HSA) inflation adjustments for 2017. By law, the IRS must publish the annual inflation adjustments for HSAs no later than June 1 for the following calendar year. This chart summarizes the changes for 2017.

5 HR Focus 2016

Legal and Compliance – continued from page 4

Continued on page 6

PPACA information reporting reminder: June 30 deadline for electronic delivery of IRS information returns

On December 28, 2015, the Treasury Department and Internal Revenue Service (IRS) announced an extension of the due dates for mandatory reporting under the Patient Protection and Affordable Care Act (PPACA). Failure to file a timely, correct or complete information return with the IRS or to send a timely, correct or complete statement to an employee (or other individual, as applicable) can result in substantial penalties. As discussed in more detail below, the deadline for electronic delivery of IRS information returns is June 30, 2016.

Background

Under the PPACA employer mandate, applicable large employers (ALEs) must offer minimum essential coverage (MEC) to their full-time employees (average 30 hours or more per week), and the coverage must be affordable and provide minimum value, or pay a corresponding penalty tax. In order for the federal government to monitor ALE compliance, the law requires that ALEs meet certain reporting obligations to the IRS and to employees. Under Internal Revenue Code (IRC) Section 6056 regulations, ALEs are directed to use Form 1094-C (transmittal form that also summarizes employer shared responsibility compliance) and Form 1095-C (addressing each employee’s coverage; collectively, the “C Forms”) to report how they are meeting their shared responsibility (i.e., employer pay or play) obligations.

PPACA also requires individuals to secure minimum essential coverage or pay a corresponding penalty under the individual mandate. Under IRC Section 6055 regulations, employers, insurance companies and other entities that provide health coverage to individuals are required to meet certain reporting obligations to the IRS and to covered individuals that support that individual mandate requirement, by using the C Forms if the reporting entity is an ALE sponsor of a self-insured plan or Form 1094-B (transmittal form) and Form 1095-B (listing the covered individuals; collectively, the “B Forms”) if the reporting entity is an insurance company or a non-ALE that is the source of health coverage for the individual.

Deadlines

The required IRS information returns are due as follows (note that these dates are the extended 2015 deadlines that the Treasury Department and IRS announced in Notice 2016-4):

� Mail filing (permitted if fewer than 250 Forms 1095-B or 1095-C) — Due May 31, 2016 (the due date was originally February 28)

� Electronic filing (required if 250 or more Forms 1095-B or 1095-C) — Due June 30, 2016 (the due date was originally March 31)

Due to the IRS’s extension of the otherwise applicable deadlines for 2015, no additional extensions will be available.

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Legal and Compliance – continued from page 5

Continued on page 7

Every employee faces this question at some point — should I stay here or should I go? A new study has found that with Millennials, it may come up more often. Even with 86% of Millennials surveyed stating they are happy where they currently work, nearly half (49%) are either actively looking or open to a new opportunity.

According to 2016 Fidelity Investments Evaluate a Job Offer Study, many Millennials are eager to make a move, with 41% expecting to start a new job in the next two years.

While those considering a career change often focus on salary and bonuses as key decision drivers when weighing a move, there are many others factors to consider — some financial and some far more difficult to quantify.

Interestingly, when asked how much of a pay cut they would be willing to take for an improved “quality of work life” (such as purposeful work, work/life balance, and company culture), Millennials report they are willing to take, on average, a $7,600 pay cut.

Furthermore, when asked which is more important when evaluating a job offer — financial benefits or improved quality of work life — 58% of Millennials chose work life.

“Clearly, many young professionals are thinking about more than money and are willing to sacrifice a portion of their salary in exchange for a career move that more closely aligns with their values or passions or improves their work/life balance,” said Kristen Robinson, senior vice president, Women & Young Investors, Fidelity Investments, in a press release.

“However, achieving better quality of life and meaningful work doesn’t have to come at the expense of a worker’s bottom line. Becoming educated about the total compensation and benefits package of an offer can enable jobseekers to evaluate the potential trade-offs between two jobs and make an informed decision that could give them the best of both worlds,” said Robinson.

Human resources professionals with hiring responsibilities should be aware that when they are thinking about the total financial compensation included in a job offer:

� 39% of Millennials include retirement benefits

� 28% contemplate health/medical insurance

� 27% consider paid time off, and

� Only 4% take into account stock options and profit sharing

However, once an applicant is hired, 81% with access to a retirement savings plan, such as a 401(k) or 403(b), enroll and take advantage of the retirement savings benefit.

So while salary is usually on top of a jobseeker’s list when evaluating the total compensation of a job offer, there are other financial considerations that should be contemplated, says Fidelity. Few applicants are actually taking a seat at the negotiation table.

In fact, 59% of Millennials surveyed accepted their current position without negotiation, falling in line with older generations who are just as likely to say “yes” to the first offer.

However, of the 41% of Millennial survey respondents who negotiated their last offer, 87% reported they were at least partially successful, says Fidelity.

New study says, while Millennials are happy at work, they keep looking for another jobCourtesy of: Business & Legal Resources

According to 2016 Fidelity Investments Evaluate a Job Offer Study, many Millennials are eager to make a move, with 41% expecting to start a new job in the next two years.

7 HR Focus 2016

Legal and Compliance – continued from page 6

As recruiters begin to grapple with the influx of Millennials into the workforce, many are finding that their tried-and-true tactics and strategies don’t seem to be as effective as they had been for previous generations.

It’s no secret this generation has ushered in sweeping changes in the ways we communicate, socialize, work, and prioritize. Millennials are mobile, dynamic, expect instantaneous communication and want a job that aligns with their values and lifestyle.

As a result, recruiters must learn a new approach that speaks to Millennials in a language they understand, and in many cases, use entirely new media to reach them. Here are five ways Millennials have changed the recruiting process, and some tips on how to adapt to meet these new demands:

1) Recognition and purpose override compensation as incentives

Millennials want a sense of purpose in their work, and have a strong desire to be recognized for their contributions and accomplishments. For many, that means a great job is defined by a workplace that supports their ideals and desire to make a difference in the world, rather than a salary and benefits package. In fact, 83% of Millennials say they are willing to accept lower pay to work for a company with a great reputation.

That means recruiters must shift their employment branding tactics to focus on showcasing a company culture that enables employees to grow as an individual and to contribute to the greater good. Providing a flexible work environment that allows for creative pursuits, volunteer work, and a healthy work/life balance is also an important benefit that carries far more weight with Millennials than bonuses or profit sharing.

2) They’re savvy consumers

Just as a shopper would check out product ratings and reviews on multiple sources before they decide to buy, Millennials are doing the same with prospective employers. Not only are they researching on sites like Glassdoor and others, but they’re also following what happens on Twitter and Instagram to get a sense of company culture and what it’s like to work for a given company — through both official accounts and the personal accounts of employees.

And, because they care what their peers think, Millennials will gravitate toward companies doing good things that make them look good as a result. For recruiters, promoting an energetic and exciting company culture can be a strong contributor to success.

This carries over into customer service — companies like Zappos, Comcast, Amazon.com, and American Airlines have become well known via Twitter for their real-time and proactive approach to customer care, and potential employees are watching. After all, how a company cares for its customers is a great indication of how it cares for its employees.

3) Personalization is paramount

Millennials have grown up in an era of personalization, where their favorite retailers, brands, and social sites have cultivated an experience customized for their unique likes, interests and behaviors. As a result, they expect the same from recruiters — the bulk send from a generic email account is not going to cut it.

Leveraging social networking and behavior data as part of your recruiting strategy to personalize outreach is critical to deliver the targeted communication Millennials expect. For example, rather than a batch-and-blast approach about a new open position, have someone in that department or skill sector reach out personally to top prospects to build a relationship, establish relevancy, and create a personal connection.

4) Media matters

Most companies rely on email as a primary engagement tool for recruiting. However, just as the landline telephone has become nearly obsolete, Millennials have moved on from email to more immediate and social communication platforms like Twitter, Snapchat, WhatsApp, Instagram, and texting. That means messages sent via the wrong channel (email) could go completely unnoticed, or if they are received, give the impression that your company is “old school” and behind the times.

Again, perception is critical, and Millennials expect any company they’d consider working for to be on the cutting edge of technology. Recruiters must learn to leverage these new social platforms to reach their target audience at the right time, in the right place, over the channels they already use, in much the same way marketers would choose advertising channels.

Five Recruiting strategies for a new generationCourtesy of: Business & Legal Resources

Continued on page 8

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5) Creativity is key

Because Millennials have always lived in the YouTube era — and now the Snapchat and Instagram era — they’re accustomed to showmanship, creativity, and memes that create a memorable impression. It takes an unconventional approach to get their attention.

In the current healthy job market, this is even more important, especially when it comes to wooing passive candidates, who will need to see some serious pizzazz and excitement coming from your company in order to consider leaving their current position.

This means you’ll have to think outside the box in order to make your employment value prop enticing. Invite programmer prospects in for a hackathon or to participate in a public community service project. Spread the word about a cause that you’re sponsoring or a fundraising event you’ll be participating. Not only does it showcase your corporate citizenship, but it also shows your creative edge.

Recruiters who can engage Millennials with this employment brand message through the social media this generation uses will build a candidate pipeline that’s overflowing with high-demand talent and hard-to-find skills.

Legal and Compliance – continued from page 7

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Webcasts

The programs listed above have been approved for 1 recertification credit through the HR Certification Institute. For more information about certification or recertification, please visit the HR Certification Institute homepage at www.hrci.org. The use of this seal is not an endorsement by HR Certification Institute of the quality of the program. It means that this program has met HR Certification Institute’s criteria to be pre-approved for recertification credit.

Willis Towers Watson is recognized by SHRM to offer Professional Development Credits (PDCs) for the SHRM-CPSM or SHRM-SCPSM. For more information about certification or recertification, please visit www.shrmcertification.org.

What’s the Big Data? How to Get Lift with a Health and Productivity Strategy Grounded in Analytics Tuesday, June 21, 2016, 2 p.m. ET

Jill E. Spiker, CEBS Senior Reporting and Analytics Consultant Human Capital and Benefits

Heidi Guetzkow Vice President Health Outcomes Consulting Human Capital and Benefits

During this session, participants will learn:

� A new model for thinking about the business value of health

� The difference between ROI and VOI

� How to think about the impact health has on lost productivity cost and other business costs such as workers’ compensation, short- and long-term disability, and absence

� How to approach a model to demonstrate cost savings opportunities from specific interventions

It’s time to explore a new model for thinking about the business value of a healthier working population. Population health data analytics is crucial to understanding what drives the cost of poor health to employers today. Increasingly, senior management is looking for the “return” or the “value” on investment for health and wellness programs (especially in light of the generational workforce shift already in progress).

This presentation addresses ways to measure health outcomes and business value, and how to use data analytics to make a business case. It includes case studies showcasing how data analytics can be used to identify underlying medical risks and gaps in care. Attendees will take away specific strategies to assist in managing health risks, medical costs and worker productivity.

To RSVP, click here.

Beyond PC (Politically Correct): How to Communicate with a Diverse Workforce Tuesday, July 19, 2016, 2 p.m. ET

Marion Cochran Lunt Senior Communication Specialist Human Capital and Benefits

Justin Brunner Senior Communication Specialist Human Capital and Benefits

During this session, participants will learn:

� The challenges and impact of bias in communications

� The relationship of language and image to power

� Three ways to reach a diverse workforce

Today’s workforce is more diverse than ever — with varied job roles and working environments, educational levels, generational disparities and ethnic and cultural differences to name a few. If your role includes workforce communication, what biases can block organizational efficiency?

Effective communication can serve as a catalyst for change and increase workforce productivity and cohesion, creating competitive advantage. This session will help you identify and eliminate biases, understand and choose appropriate language and images and learn ways, using real-life examples, to apply these methods to your communication campaigns.

To RSVP, click here.

NOTE: An advance RSVP is required to participate in these calls. Registration ends one hour prior to the call start time.

New England

Auburn, ME 207 783 2211

Bangor, ME 207 942 4671

Boston, MA 617 437 6900

Burlington, VT 802 264 9536

Hartford, CT 860 756 7365

Manchester, NH 603 627 9583

Portland, ME 207 553 2131

Shelton, CT 203 924 2994

Northeast

Buffalo, NY 716 856 1100

Morristown, NJ 973 539 1923

Mt. Laurel, NJ 856 914 4600

New York, NY 212 915 8802

Stamford, CT 203 653 2430

Radnor, PA 610 254 7289

Wilmington, DE 302 397 0171

Atlantic

Baltimore, MD 410 584 7528

Knoxville, TN 865 588 8101

Memphis, TN 901 248 3103

Metro, DC 301 581 4262

Nashville, TN 615 872 3716

Norfolk, VA 757 628 2303

Reston, VA 703 435 7078

Richmond, VA 804 527 2343

Rockville, MD 301 692 3025

Southeast

Atlanta, GA 404 224 5000

Birmingham, AL 205 871 3300

Charlotte, NC 704 344 4856

Gainesville, FL 352 378 2511

Greenville, SC 864 232 9999

Jacksonville, FL 904 562 5552

Marietta, GA 770 425 6700

Miami, FL 305 421 6208

Mobile, AL 251 544 0212

Orlando, FL 407 562 2493

Raleigh, NC 704 344 4856

Savannah, GA 912 239 9047

Tallahassee, FL 850 385 3636

Tampa, FL 813 281 2095

Vero Beach, FL 772 469 2843

Midwest

Appleton, WI 800 236 3311

Chicago, IL 312 288 7700

Cleveland, OH 216 861 9100

Columbus, OH 614 326 4722

Detroit, MI 248 539 6600

Grand Rapids, MI 616 957 2020

Milwaukee, WI 262 780 3476

Minneapolis, MN 763 302 7131 763 302 7209

Moline, IL 309 764 9666

Overland Park, KS 913 339 0800

Pittsburgh, PA 412 645 8506

Schaumburg, IL 847 517 3469

South Central

Amarillo, TX 806 376 4761

Austin, TX 512 651 1660

Dallas, TX 972 715 2194 972 715 6272

Denver, CO 303 765 1564 303 773 1373

Houston, TX 713 625 1017 713 625 1082

McAllen, TX 956 682 9423

Mills, WY 307 266 6568

New Orleans, LA 504 581 6151

Oklahoma City, OK 405 232 0651

San Antonio, TX 210 979 7470

Wichita, KS 316 263 3211

Western

Fresno, CA 559 256 6212

Irvine, CA 949 885 1200

Las Vegas, NV 602 787 6235 602 787 6078

Los Angeles, CA 213 607 6300

Phoenix, AZ 602 787 6235 602 787 6078

Portland, OR 503 274 6224

Irvine, CA 949 885 1200

San Diego, CA 858 678 2000 858 678 2132

San Francisco, CA 415 291 1567

San Jose, CA 408 436 7000

Seattle, WA 800 456 1415

For more information, contact your local Willis Towers Watson office.

10 HR Focus 2016

About Willis Towers WatsonWillis Towers Watson (NASDAQ: WLTW) is a leading global advisory, broking and solutions company that helps clients around the world turn risk into a path for growth. With roots dating to 1828, Willis Towers Watson has 39,000 employees in more than 120 countries. We design and deliver solutions that manage risk, optimize benefits, cultivate talent, and expand the power of capital to protect and strengthen institutions and individuals. Our unique perspective allows us to see the critical intersections between talent, assets and ideas — the dynamic formula that drives business performance. Together, we unlock potential. Learn more at willistowerswatson.com.

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