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  • February 18, 2025 11:11 AM | Bill Brewer (Administrator)

    Poll: Most U.S. workers with chronic conditions manage them at ...

    By Maya Brownstein

    February 11, 2025

    Paid leave, flexible schedules, and adequate breaks may help those with difficulty managing their conditions

    For immediate release: February 11, 2025

    Boston, MA—Chronic health conditions are taking a major, hidden toll on the U.S. workforce’s lives and productivity, according to a new national poll by Harvard T.H. Chan School of Public Health and the de Beaumont Foundation. The poll, conducted among a national sample of U.S. employees, found that three-fourths (76%) of those with chronic conditions—such as hypertension, heart disease, diabetes, and asthma—need to manage their conditions during work hours. Yet a majority (60%) have not formally disclosed their conditions to their employer. 

    The poll, U.S. Employee Perspectives on Managing Chronic Conditions in the Workplacewas conducted October 2–16, 2024, among a probability-based, nationally representative sample of the U.S. workforce, composed of 1,010 part-time and full-time working adults ages 18+ who are not self-employed and work at organizations with 50 or more employees.  

    The poll found that more than half of employees in the U.S. (58%) report having physical chronic health conditions, with many structuring their health care to account for their jobs or going without. Notably, more than one-third of employees with chronic conditions (36%) say they have skipped medical appointments or delayed getting care to avoid interfering with work in the past year. And about half of those with chronic conditions say, in the past year, they felt they could not take time off work (49%) or take a break while at work (49%), even though they needed to because of their conditions. 

    Missed opportunities and stigma

    In addition, one-third of employees with chronic health conditions (33%) say in the past year they have missed out on opportunities for more hours or projects because of their conditions, while 25% report missing out on opportunities for promotion and 21% report receiving bad reviews or negative feedback as a result of their chronic health conditions. 

    “Though employers may think they know their employees’ needs, poll results suggest there are widespread and frequently hidden challenges facing workers with chronic conditions,” said survey lead Gillian SteelFisher, director of the Harvard Opinion Research Program and principal research scientist at Harvard Chan School. “Workers commonly feel stigmatized by their conditions, and this can have a profound effect on both their work and their health. To help retain employees in a tight job market, employers may want to have more conversations with employees about ways that they can make work ‘work’ for everyone.”  

    Challenges managing family members’ conditions

    The poll also found that a significant share of the U.S. workforce faces additional challenges caring for family members with chronic conditions. One-third of all employees (33%) say they have helped family members with their chronic conditions in the past year, and nearly half of those helping family members (45%) frequently needed to do so during working hours. More than a third of those helping family members (37%) say it has been difficult to take time off work, and among those helping family members or managing chronic conditions themselves, a quarter (25%) have needed to reduce work hours to manage this.

    Concerningly, one in four employees who have chronic conditions themselves or help family members with theirs say they don’t have any paid leave (12%) or have run out of paid leave in the past year (14%) because they were trying to take care of their or their family’s chronic conditions.

    “There is a major opportunity for employers to play a greater role in supporting employees who are managing their own or their family’s chronic conditions,” said Brian Castrucci, president and CEO of the de Beaumont Foundation. “Not only will this improve the health of employees and their families, but it will also provide employers a way to distinguish themselves, as well as improve retention and reduce absenteeism.”

    Less than half of all U.S. workers say their current employer is very supportive of key measures that allow employees to manage their conditions, including allowing employees to take breaks when they feel they need it (44%) or take paid leave (44%). Fewer than four in ten say their employer is very supportive of flexible schedules or working remotely more often if the work can be done offsite (37% and 27%, respectively).

    Methodology

    Results are based on survey research conducted by the Harvard Opinion Research Program (HORP) based at Harvard T.H. Chan School of Public Health, in partnership with the de Beaumont Foundation. Representatives from each organization worked closely to develop the survey questionnaire, while analyses were conducted by researchers from Harvard Chan School and the fielding team at SSRS of Glen Mills, Pennsylvania.  

    The HORP project team included Gillian SteelFisher, director of HORP and principal research scientist at Harvard Chan School; Mary Gorski Findling, managing director; and Hannah Caporello, senior research projects manager.

    The de Beaumont Foundation project team included Brian Castrucci, president and CEO of the de Beaumont Foundation; Katy Evans, senior program officer; Emma Dewhurst, program and research associate; Mark Miller, vice president of communications; and Nalini Padmanabhan, communications director. 

    Interviews were conducted with a representative sample of 1,010 part-time and full-time working adults ages 18 and older, who work at organizations with 50 or more employees. Self-employed individuals were excluded. The sample included a subset of 594 adults with physical chronic health conditions. Interviews were conducted in English and Spanish online and by telephone. Respondents were reached online and by phone through the SSRS Opinion Panel, a nationally representative, probability-based panel. Panelists were randomly recruited via an Address Based Sampling (ABS) frame and from random-digit dial (RDD) samples on SSRS surveys. Most panelists completed the survey online, with a small subset who do not access the internet completing by phone. The interview period was October 2–16, 2024. 

    When interpreting findings, one should recognize that all surveys are subject to sampling error. Results may differ from what would be obtained if the whole U.S. adult population had been interviewed. The margin of error for the full sample is ±3.8 percentage points. 

    Possible sources of non-sampling error include non-response bias, as well as question wording and ordering effects. Non-response in web and telephone surveys produces some known biases in survey-derived estimates because participation tends to vary for different subgroups of the population. To compensate for these known biases and for variations in the probability of selection within and across households, sample data are weighted in a multi-step process by probability of selection and recruitment, response rates by survey type, and demographic variables (gender, age, education, race/ethnicity, region, the frequency of internet use, civic engagement, population density, registered voter, party ID, religious affiliation, number of adults in household, and home tenure) to reflect the true population of employed adults in the U.S. working at organizations with 50 or more employees. Other techniques, including random sampling, multiple contact attempts, replicate subsamples, and systematic respondent selection within households, are used to ensure that the sample is representative.

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    Source: The Harvard T.H. Chan School of Public Health

    https://hsph.harvard.edu/news/poll-most-u-s-workers-with-chronic-conditions-manage-them-at-work-havent-told-employer/

  • February 18, 2025 11:03 AM | Bill Brewer (Administrator)

    Remote work is the new company car as businesses offer perk to lure, retain top talent

    February 5, 2025 by John Mullinix

    Latest jobs data from Ladders shows highest paying jobs gained most remote work opportunities 

    Highlights from Ladders Q4 2024 $250,000 jobs report 

    • Jobs that pay $250,000 are more likely to have remote work opportunities than jobs below 250K+
    • Remote and hybrid opportunities for the highest paying roles increased throughout the year
    • Medical and tech professionals are most likely to earn high paying remote jobs

    New York, New York (February 5, 2024) – In the past, a company car was the ultimate status symbol for high earners. Now, skipping the commute all together is the coveted perk. New data from Ladders, the career site for jobs that pay $100,000 or more, revealed employees who earn $250,000 or more are the most likely to find remote work opportunities. “You could say remote work is the new company car. Employees don’t want to drive to work in a fancy car, they don’t want to drive to work at all,” said John Mullinix, Director of Growth Marketing at Ladders. 

    Work Environment Salary Range Q3 Share of jobs Q4 Share of jobs
    Hybrid 250K+ 2.93% 3.29%
    In-person 250K+ 86.61% 84.61%
    Remote 250K+ 10.44% 12.10%

    The Q4 2024 $250K+ Jobs Report from Ladders revealed continuous growth in remote and hybrid opportunities for the highest paying jobs. Tech and medical roles dominated the trend. Mullinix explained, “This trend is largely driven by technological advancements, particularly in telehealth, which has enabled healthcare organizations to scale remote service offerings like never before. Mental health, primary care, and even some nurse practitioner roles have seen significant remote expansion, making high-paying medical jobs more accessible outside traditional clinical settings.

    While telehealth is a significant factor, the increase in remote work is also influenced by non-clinical roles within the healthcare industry. Positions such as IT support, and administrative functions have transitioned to remote settings, also contributing to the overall growth of remote work in healthcare. However the majority of the remote work is telehealth related.”

    Top 15 jobs that pay $250,000 or more

    1. Physician 
    2. Medical Director
    3. Psychiatrist
    4. Dentist
    5. Market Manager
    6. Principal Software Engineer
    7. Solar Sales Representative
    8. Dermatologist
    9. Chief Financial Officer (CFO)
    10. Gastroenterologist
    11. Urologist
    12. Anesthesiologist
    13. Neurologist
    14. Hospitalist
    15. Neonatologist

    Ladders High Paying Jobs Competition Index reveals job titles with the most applicant competition 

    Job seekers will face the least competition for high paying remote jobs in healthcare, science, and engineering roles. Those in business development, sales and marketing will have a more difficult time securing a high paying remote role. To determine the type of job openings with the most competition, Ladders divided the number of high paying jobs in a particular field by the number of applications submitted within that field.
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    Years of experience requested for 250K+ Jobs 

    Mullinix noted, “Unsurprisingly, most professionals will have to work their way up to a sought-after six-figure remote job.” Ladders found most job postings offering $250,000 or more require eight to ten years of experience. A significant number required five to seven years of experience.
     alt="article-content-image" />

    Research Methodology
    Data scientists analyzed over a million job postings each quarter from January through December of 2024 to compile the Q4 2024 Ladders Quarterly $250,000+ Jobs Report. In addition to the remote work data, they also studied high paying job titles, career fields, and the companies with the most high paying jobs available. 

    Quarter-over-Quarter (QoQ) percentage change measures how shares of specific forms of work availability increased or decreased from one quarter to the next.

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    Source: The Ladders

    https://www.theladders.com/career-advice/remote-work-is-the-new-company-car-as-businesses-offer-perk-to-lure-retain-top-talent#:~:text=Now,%20skipping%20the%20commute%20all,is%20the%20new%20company%20car.

  • February 18, 2025 10:59 AM | Bill Brewer (Administrator)

    Cigna to tie executive compensation to customer satisfaction ...

    BLOOMFIELD, Conn., Feb. 3, 2025 – Global health company The Cigna Group (NYSE:CI) today announced a new multi-year effort aimed at meaningfully transforming the experiences of the millions of people it serves.

    “The health care system in America needs to be better, and we have challenged ourselves to help lead and drive systemic change,” said David M. Cordani, chairman and CEO of The Cigna Group. “We do a lot of good for many people, but we need to do better for everyone. We are committed to implementing tangible actions across our company to help drive better health outcomes and health care experiences. Today’s announcement marks the initial steps in our multi-year journey toward building a better and more sustainable model in health care.”

    The Cigna Group has established five key areas of focus, and several initial specific actions, to improve the health of its customers and the value it provides:

    • Easier access to care: The company will address the challenges customers face by making its processes simpler, easier and faster.
    • Better support: The company will provide customers with more support and resources to navigate the health care system.
    • Better value: The company will drive better value for its customers. 
    • Accountability: The company will implement governance processes at the highest levels to successfully ensure positive changes.
    • Transparency: The company will openly share how it is continuously improving.

    Initial Actions To Drive The Cigna Group’s Commitments

    The Cigna Group: To ensure alignment in priorities and greater accountability, The Cigna Group will tie its leaders’ compensation to improving the satisfaction of its customers.

    Additionally, starting in early 2026, The Cigna Group will publish an annual Customer Transparency Report to make its progress toward its commitments clear. The report will include important information relating to how the company facilitates customer care, including details about its services and resolution statistics.

    Cigna Healthcare: As announced separately today Cigna Healthcare is taking the following actions:

    • Expanding its team of Cigna Healthcare advocates who support customers and patients with the most challenging or complex conditions, such as cancer; these highly trained advocates will help more patients navigate every stage of their care and treatment journey
    • Investing resources to help more customers and patients quickly resolve administrative needs with prior authorization and post-care claims
    • Introducing an enhanced digital status tracker that patients can use for prior authorization updates
    • Encouraging physicians to communicate electronically about prior authorizations and claims through Cigna Healthcare’s digital provider portal to expedite approvals and reduce error

    Evernorth Health Services: Evernorth recently announcedThis link will open in a new tab. actions to address Express Scripts’ patient access and affordability and improve transparency.

    Going forward, Evernorth’s standard offerings will protect patients from paying the high list price of their medications, ensuring they benefit from the lower price negotiated by Express Scripts. Additionally, patients in employer-sponsored plans will have improved financial predictability, receiving the benefit of savings negotiated by Express Scripts if they don’t already.

    As part of this broader effort, the company also committed to providing an annual personalized summary to customers about how they benefit directly from the discounted prices Express Scripts negotiates and providing an annual standardized report to plan sponsors disclosing costs and pharmacy claim-level reporting.

    Executive Changes To Ensure Accountability

    The Cigna Group’s work to drive significant improvements for all its customers will be governed by its new Office of Excellence and Transformation. This office will partner across the organization to shape the company’s response to improve the health of the millions of customers it serves and to ensure accountability.

    The office will have oversight by Dr. David Brailer, the company’s executive vice president and chief health officer and a highly experienced physician. Additionally, Chris DeRosa will assume a newly created role leading the office, reporting to Dr. Brailer. DeRosa, a longtime Cigna Healthcare leader with a deep understanding of the needs of customers and health plan sponsors, currently serves as president, U.S. Government, Cigna Healthcare. DeRosa will continue to oversee the company’s Medicare businesses through the transaction with HCSC, which we expect will close in the first quarter.

    “I am inspired to work alongside our 70,000 colleagues and the Office of Excellence and Transformation to realize our commitments to better care and clinical excellence,” Dr. Brailer said. “We will lead the health care industry in how we serve our patients and customers and support the clinicians who care for them.”

    More information about The Cigna Group’s commitments is available hereThis link will open in a new tab..  

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    Source: Cigna

    https://newsroom.thecignagroup.com/the-cigna-group-launches-actions-to-drive-positive-change-for-customers-and-patients

  • February 18, 2025 10:55 AM | Bill Brewer (Administrator)

    people meeting and working at a board room table

    News provided by: National Association of Corporate Directors 

    Feb 03, 2025, 09:00 ET

    NACD today published its annual Director Compensation Report, the industry standard for public company board pay practices, structures and trends.  

    WASHINGTON, Feb. 3, 2025 /PRNewswire/ -- The National Association of Corporate Directors (NACD), the authority on boardroom practices representing 24,000 board members, has reported that public company director compensation levels continue to grow modestly. NACD's 26th annual Director Compensation Report, produced in collaboration with leading compensation and leadership consultancy Pearl Meyer, shows that as boards' responsibilities and expectations continue to expand, median director pay for 2024 slightly increased by 3 percent, and overall compensation practices continued to align with governance standards and shareholder expectations.  

    Figure 5 - Median Total Direct Compensation by Company Size

    Figure 5 - Median Total Direct Compensation by Company Size

     The report presents key findings based on Pearl Meyer's research of director compensation trends and practices from 1,400 public companies across 24 industries. In addition to providing robust data, NACD's report also affirms the leading principles and best practices that all companies should consider when setting director compensation.  

     Key Findings from the report: 

    • Total Direct Compensation (TDC) for directors has slightly increased by 3 percent over the prior year for all publicly traded firms. Micro companies (defined as having between $50 million and $500 million in revenue) had the largest annual increase at 10 percent TDC and experienced the greatest increase over the past several years. 
    • The equity portion of TDC has steadily increased as the median director's pay mix is approaching a 60 percent equity and 40 percent cash split, with equity awards full-value shares and, less commonly, stock options) being the largest component of director compensation across public firms.   
    • Audit, compensation and nominating/governance committee prevalence numbers remain consistent, and risk committees are on the rise. From 2014 to 2024, the prevalence of risk committees increased by 8 percent, while the number of other standing committees have evolved their agendas to meet the changing needs of companies. The percentage of companies delivering retainers to their audit, compensation, and nominating/governance committees also increased steadily, ranging from 76 to 88 percent in 2014, and from 87 to 91 percent today.
    • Providing compensation for committee chairs remains a frequent practice. As the roles and responsibilities of boards and their primary committees have broadened, the need for additional, specialized committees has diminished, as oversight and governance functions have become streamlined under a more cohesive structure. This simplification and streamlining was similar for director compensation programs overall. 

    Read the full report for additional insights into the most recent trends in director compensation at www.nacdonline.org.  

    "Directors today operate in a complex and fast-paced environment that requires agility and adaptability. The commitment needed for board membership has increased significantly due to oversight of emerging risks related to economic uncertainty, along with oversight in areas of human capital, technology and cybersecurity," said Peter Gleason, NACD president and CEO.

    "While year-over-year changes in board pay have been modest, the scrutiny boards face continues to increase," said Ryan Hourihan, managing director at Pearl Meyer and lead author of the report. "It's important for boards to understand how they compare to market practice to ensure their programs are competitive and capable of attracting the caliber of director expected by shareholders."

    About the Pearl Meyer/NACD 2024–2025 Director Compensation Report:

    Data presented in the 2024-2025 Director Compensation Report was collected through a study with Main Data Group of 1,400 companies across 24 industries that had filed a proxy statement or any other SEC filing containing director compensation information for the fiscal year ending between Feb. 1, 2023, and Jan. 31, 2024. The report assigns companies to one of five size categories based on revenue: micro ($50 to $500 million in revenue), small ($500 million to $1 billion in revenue), medium ($1-$2.5 billion in revenue), large ($2.5-$10 billion in revenue), and top 200 (200 largest companies in the S&P 500 based on revenue).

    About NACD

    The National Association of Corporate Directors (NACD) is the leading member organization for corporate directors who want to expand their knowledge, grow their network and maximize their potential. For more than 47 years, NACD has helped boards and the business community elevate their performance and create long-term value. Our leadership continues to raise standards of excellence and advance board effectiveness at thousands of member companies.

    NACD's valued insights, professional development events and resources, such as the NACD Directors SummitTM and the NACD Directorship Certification® program, support boards in navigating complex challenges. With a growing network of more than 24,000 members across over 20 Chapters, boards are better equipped to make well-informed decisions on the critical, strategic issues facing their businesses today. Learn more at www.nacdonline.org.

    About Pearl Meyer
    Pearl Meyer is the leading advisor to boards and senior management helping organizations build, develop and reward great leadership teams that drive long-term success. Our strategy-driven compensation and leadership consulting services act as powerful catalysts for value creation and competitive advantage by addressing the critical links between people and outcomes. Our clients stand at the forefront of their industries and range from emerging high-growth, not-for-profit and private companies to the Fortune 500.  

    Media Contacts:
    Shannon Bernauer
    sbernauer@nacdonline.org
    571-367-3688

    Teresa Osborne
    teresa.osborne@pearlmeyer.com  
    508-244-0821

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    SOURCE National Association of Corporate Directors

  • January 14, 2025 5:21 PM | Bill Brewer (Administrator)

    A sign advertises job openings at McDonald's starting at $12 per hour.

    The data highlights a disconnect between the importance employers say they place on advancing these strategies, and how much progress has been made,” Mercer’s global rewards solution leader said.

    Published Jan. 14, 2025 / Ginger Christ

    Dive Brief:

    • Only 19% of U.S. companies have a pay transparency strategy in place, according to the results of Mercer’s 2024 Global Pay Transparency Survey Report, which were released Jan. 10. 
    • Despite that, 63% of U.S. organizations said they planned to share pay information internally and externally in a standardized way, and 56% said employees should have the same access to compensation data, regardless of where they work in the world, Mercer found. 
    • Of the more than 1,000 companies surveyed, over 300 of which are in the U.S., 77% identified compliance as a key driver for their strategy, and more than 50% cited improving employee satisfaction and aligning with company values as drivers of their policy.

    Dive Insight:

    Pay transparency is becoming increasingly important in the U.S., as more states, including New York, California and Colorado, pass legislation requiring employers to disclose pay or pay ranges

    Beyond that, 75% of U.S. employers said they think candidates expect pay transparency, and 54% believe current employees expect it, Mercer found. 

    “The data highlights a disconnect between the importance employers say they place on advancing these strategies, and how much progress has been made,” Gordon Frost, Mercer’s global rewards solution leader, said in a news release. “With fair pay the second-most important reason employees choose to stay with an organization, don’t wait to prioritize these efforts — because there is still a lot of work to be done.”

    To address this, 65% of U.S. organizations plan to conduct pay equity studies, and 59% are adjusting their employee compensation models to align with external market rates, the report found. 

    But organizations also reported that the biggest hurdle for them is manager inability to explain compensation programs to workers; 37% of U.S. companies identified this as their biggest challenge, Mercer said. 

    “With manager enablement one of the biggest challenges our clients face in 2025, these employees will be critical to your pay transparency strategy’s success. Ensuring managers are equipped to deliver these messages to your workforce should be a key component of that rollout,” Tauseef Rahman, a partner in Mercer’s career practice, said in a statement. 

    Three in 4 companies said they aren’t ready for pay transparency laws, according to the results of a survey by Aon plc, a global professional services firm, released in December. 

    While the incoming Trump administration will likely try to weaken government agencies promoting pro-worker initiatives like pay transparency, state efforts will still have movement, Lulu Seikaly, senior employment counsel for Payscale, said regarding 2025 compensation trends.

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    Source: HR Dive 

    https://www.hrdive.com/news/1-in-5-us-companies-have-a-pay-transparency-strategy/737114/

  • January 07, 2025 8:59 AM | Bill Brewer (Administrator)

    How retirement savings will change in 2025Higher contribution limits to 401(k) and IRA accounts, plus other twists are ahead for savers and retirees.

    Kerry Hannon · Senior Columnist

    Updated Sat, January 4, 2025 at 5:08 AM PST 7 min read

    Saving for retirement will get a modest boost in 2025 thanks to higher contribution limits and the phase-in of provisions stemming from the Secure 2.0 Act, which became law at the end of 2023.

    For retirees, there are also changes for Social Security and Medicare worth noting.

    Here’s a roundup of some of the key retirement-related changes to watch for in the new year.

    Higher saver contribution limits

    Employer-sponsored retirement plans come with sizable contribution limits — not that everyone can spare to set aside that much — and they’re increasing slightly. For 2025, you’ll be able to increase your annual contribution to your 401(k), 403(b), governmental 457 plans, and the federal government's Thrift Savings Plan to $23,500, up from $23,000.

    The catch-up contribution limit, for those 50 or older, is holding steady at $7,500. There’s an extra layer of icing for workers aged 60 to 63, thanks to the Secure 2.0 law — a higher catch-up contribution limit of $11,250.

    “People at this life stage often have college funding in the rearview mirror, so if they're in the position to turbocharge their retirement plan contributions in advance of retirement, they should take advantage of it,” Christine Benz, director of personal finance and retirement planning for Morningstar, told Yahoo Finance.

    The contribution limit on individual retirement accounts (IRAs) will stick at $7,000, and the catch‑up contribution limit for individuals 50 and over stays at $1,000 for 2025.

    IRA deductions for singles covered by a retirement plan at work phases out for modified adjusted gross income (MAGI) between $79,000 and $89,000, up from $77,000 to $87,000. The deduction gradually disappears for married couples filing jointly between $126,000 and $146,000, up from $123,000 to $143,000.

    Some good news for Roth IRA fans: The income limit range for contributing will increase to between $150,000 and $165,000 for singles and heads of household, up from $146,000 to $161,000. For married couples filing jointly, the range increases to between $236,000 and $246,000, up from $230,000 to $240,000.

    Finally, the income limit for the Saver’s Credit, a nonrefundable tax credit worth up to $1,000 ($2,000 if married filing jointly) for taxpayers who contribute to a retirement account is $79,000 for married couples, up from $76,500; $59,250 for heads of household, up from $57,375; and $39,500 for singles and married individuals filing separately, up from $38,250.

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    Source: Yahoo Finance

    https://finance.yahoo.com/news/what-do-people-regret-the-most-when-they-retire-143035482.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAAsT9E0zmDdAYJ7_Hfs_RCv9bLsFTXJEfcrowXg3ZR--HuJzyLmqXFQfKY5NJRl57vFzYixNpPmoDZw9o4sw9jGpIrkceCEkwsFmnfaDdA3IR_7TP0faU9d2aBpE3lmfmdqGwSHnszcK3PqVqScYa2LPyYGWheuIuoLmI1OmxV9h

  • January 07, 2025 8:51 AM | Bill Brewer (Administrator)

    Employers Plan to Stay Consistent with Compensation Budgets in 2025

    Employers also plan to promote 9.3% of employees in 2025, up from 8% in 2024

    December 10, 2024

    Today, Mercer, a business of Marsh McLennan (NYSE: MMC) and a global leader in helping clients realize their investment objectives, shape the future of work and enhance health and retirement outcomes for their people, released the results of the November 2024 Mercer QuickPulseTM US Compensation Planning Survey.  

    According to the survey of more than 850 US organizations, employers are planning to raise their compensation budgets by 3.3% for merit increases and 3.7% for total salary increases for non-unionized employees in 2025. Sixty-nine percent of surveyed employers expressed confidence in their compensation budget projections. These figures remain consistent with the actual merit and total salary increases delivered in 2024, which were 3.3% and 3.6%1, respectively.

    While these planned increases are similar to last year, they remain above historical trends, confirming that employers are prioritizing talent investment even in the face of economic uncertainty.

    “Amid a persistently tight labor market and low unemployment, employers are recognizing the need to invest in their workforce to drive retention,” said Lauren Mason, Mercer’s US Workforce Solutions Leader. “To remain competitive in this environment, employers will need to look beyond compensation and transform work itself to improve the employee experience and unlock greater productivity.”

    The majority of employers (80%) indicated that they have not finalized their compensation budgets. Among those with approved compensation budgets (20%), their 2025 budget projections were consistent with the projections made in August for all surveyed employers, which were 3.3% for merit increases and 3.6% for total salary increases.

    The survey also revealed industry variations. The technology sector reported above-average compensation budgets, with increases of 3.5% for merit and 3.8% for total compensation, while the healthcare services industry reported below-average increases for merit and total compensation of 3.0% and 3.5%, respectively.

    Employers are planning to promote 9.3% of employees in 2025, up from 8% in 2024. Many employers reported a flexible approach to promotions, conducting them as needed or via two or more cycles per year. This emphasis on career and compensation progression demonstrates a commitment to retaining essential talent and skills while fostering employee engagement and loyalty.

    Reflecting the move towards greater pay transparency, 18% of companies said they are sharing pay ranges with all employees and candidates, while another 27% are considering this action. The August 2024 Compensation Planning Survey revealed that 52% of employers plan to conduct pay equity studies to meet rising transparency demands, underscoring a strong focus on fair pay practices.

    “When employers aren’t clear about pay, employees create their own narratives—and those stories can be more negative than the reality,” said Ms. Mason. “Despite significant investment in pay in recent years, employee satisfaction with fair pay is still on the decline.”

    “Companies should continue to redesign and communicate how pay decisions are made, ensuring every dollar invested closes critical gaps and contributes to a more transparent, fair and rewarding experience,” Ms. Mason added.

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    Source: Mercer

    https://www.mercer.com/en-us/about/newsroom/us-employers-maintain-elevated-compensation-budgets-for-2025/

  • January 07, 2025 8:48 AM | Bill Brewer (Administrator)

    EU flags in front of the Berlaymont building, headquarters of the European Commission in Brussels, Belgium.

    By the end of 2026, at least 14 U.S. states, four Canadian provinces and all European Union countries will have pay transparency laws in place.

    Published Dec. 17, 2024 by Ginger Christ 


    Dive Brief:

    • Seventy-five percent of companies aren’t ready for pay transparency laws, according to the results of a survey by Aon plc, a global professional services firm, released Dec. 5. Yet, 14 U.S. states and four Canadian provinces will have laws in place by the end of 2025 and all European Union countries will by the end of 2026. 
    • Of the 626 global U.S. employers surveyed, those in retail and e-commerce (33%), financial institutions (21%), manufacturing (20%) and professional and business services (20%) reported feeling the most prepared. 
    • While 81% of employers surveyed said they include salary ranges on job listings, 63% said they don’t share salary ranges with current employees. Of the 37% who do share salary ranges with existing workers, 61% said they only disclose that information where they are required to do so by law.

    Dive Insight:

    In addition to states, some U.S. cities have passed their own laws requiring employers to disclose pay or salary ranges, including New York City and Cincinnati.

    “The rise of pay transparency and pay equity initiatives reflects a broader cultural shift, particularly among younger employees,” Brooke Green, head of talent solutions for North America at Aon, said in a statement. While it was once considered “impolite to publish salary information,” Green said, not doing so may reinforce and exacerbate pay gaps.

    Green said companies that comply with new regulations “sooner rather than later” will be better able to tackle pay disparities, encourage fairness and help workers make informed career choices. 

    Forty-seven percent of companies with significant operations in Europe said they were concerned about the upcoming EU Pay Transparency Directive, according to an October report by software company Syndio. And one expert said the directive will “upend” how companies manage and explain pay. 

    The laws are effective in making companies share pay information, according to an October story from Indeed’s Hiring Lab. The three states and localities that showed the largest growth in salary transparency over the past year — Hawaii, Washington, D.C., and New York — had pay transparency laws that went into effect around the last year.

    ***** ***** ***** ***** ***** 

    Source: HR Dive

    https://www.hrdive.com/news/employers-arent-prepared-for-pay-transparency-laws/735789/ 

  • August 21, 2024 8:40 AM | Bill Brewer (Administrator)

    The program, created in SECURE 2.0, addresses student loans, which are considered a significant impediment to retirement savings.

    Reported by Amy Resnick

    The Internal Revenue Service published guidance Monday to assist plan sponsors providing or planning to provide matching contributions based on employees’ qualified student loan payments.

    The IRS published Notice 2024-63, which uses a question and answer format, to illustrate the rules for employers with 401(k), 403(b) and governmental 457(b) plans to provide matching contributions based on qualified student loan payments, abbreviated as QSLP, rather than based only on elective contributions to retirement plans. Student loan defined contribution plan matching was permitted under the SECURE 2.0 Act of 2022.

    Student loan repayment is frequently identified as one of the largest causes of financial stress and impediments to retirement savings among U.S. workers.

    The notice also separately outlines QSLP rules for SIMPLE IRA plans.

    The IRS is taking public comments on the notice, which applies to plan years beginning after Dec. 31, 2024. The comment period runs for 60 days after the notice is published in the Federal Register.

    The ERISA Industry Committee, representing large employers in their capacity as benefit plan sponsors, supported the IRS’ action.

    “ERIC’s member companies are committed to the financial wellbeing of their employees, including those with outstanding student loans,” said Andy Banducci, ERIC’s senior vice president for retirement and compensation policy, in a statement. “That is why we lobbied Congress to enact a tax law change allowing employers to make retirement plan matching contributions on account of workers’ qualified student loan payments. We applaud the IRS for issuing interim guidance implementing this change and look forward to providing technical comments to IRS in the coming weeks.”

    The regulator also announced plans to issue proposed regulations providing further guidance on the QSLP benefit, stating that plan sponsors may rely on the notice until the proposed regulations are issued.

    The guidance makes clear that plans cannot include provisions limiting QSLP matching to certain qualified education loans and that “all employees … eligible to receive matching contributions on account of elective deferrals must be eligible to receive matching contributions on account of ‘qualified student loan payments.’”

    It also states that plans have to offer uniform treatment of elective deferral matches and QSLP matches.

    “A plan with a QSLP match feature may not include provisions that exclude employees from receiving QSLP matches if those employees are eligible to receive elective deferral matches, and a plan with a QSLP match feature may not include provisions that exclude employees from receiving elective deferral matches if those employees are eligible to receive QSLP matches,”  the IRS wrote.

    Overall, the notice addresses plan administration issues raised by Section 110 of SECURE 2.0, including:

    • Only an employee’s qualified education loan payments that were made during a plan year are eligible to be counted for purposes of the employee’s QSLP match for that plan year;
    • A qualified education loan payment is a QSLP only if the certification requirement is satisfied with respect to that payment. A plan may require a separate certification for each qualified education loan payment intended to qualify as a QSLP or permit an annual certification that applies for all qualified education loan payments intended to qualify as QSLPs for a year; and
    • To certify a QSLP, the plan or its third-party service provider much receive the amount of the loan payment made, the date of the loan payment, that the payment was made by the employee, that the loan being repaid is a qualified education loan and was used to pay for qualified higher education expenses of the employee, the employee’s spouse or the employee’s dependent, and that the employee incurred the loan.

    The notice also offers examples of administrative procedures and optional Actual Deferral Percentage testing.

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    Source: PLANADVISER

    https://www.planadviser.com/interim-irs-guidance-published-student-loan-matching-payments/

  • August 21, 2024 8:36 AM | Bill Brewer (Administrator)

    Payscale: U.S. Employers Forecast 3.5% Pay Increases for 2025 ...

    15th August 2024 

    Payscale Inc., a leading provider of compensation data, software, and services, has released the results of its ninth annual Salary Budget Survey, a key resource for HR and compensation professionals determining pay increase strategies for the upcoming year. The survey results reveal that U.S. employers are budgeting for 3.5% pay raises in 2025.  

    “Given the stabilization of inflation and the easing of labor market conditions, we’re seeing a slight reduction in planned salary increases for 2025, though figures are still above the 3% pre-pandemic baseline that employees have come to expect,” says Ruth Thomas, chief of research and insights at Payscale. “When we zoom in on different industries and sectors, we observe that raises can vary by up to 1.4%, indicating that labor is in higher demand for some organizations.”  

    Pay raise growth is on the decline—but slightly more people are set to receive one, the survey finds. Going into 2025, organizations are anticipating pay increases of 3.5% in the U.S. and 3.3% in Canada, a slight drop from 2024. So far, actual pay increases in the U.S. have averaged 3.6%, down from the 4% pay raises observed in 2023. Although rates are declining, 85% of employees will receive a base pay bump this year, compared to 83% last year.  

    Employees in certain industries will experience rates exceeding 4%, while those in other lines fo work will barely surpass 3%. Government workers and those in the engineering and science fields can expect to see higher-than-average salary increases, averaging 4.5% and 4.2%, respectively. Conversely, retail and customer service employees and those that work in education—including teachers—will see raises of just 3.1%.  

    While most salary increase budgets remain unchanged, organizations with higher and lower budgets both point to the economy as a main reason for the shift. Just two in 10 organizations anticipate a compensation budget that’s higher than last year’s, and even fewer are expecting a lower budget allocation. Most organizations (66%) expect budgets to stay the same. For those with higher budgets, increased competition for labor was the primary reason, followed by economic performance. For those with reduced salary budgets, outsized increases in years prior and concern about the economy were cited.  

    “Although perceptions of the current economy are mixed, organizations in a growth phase and those facing headwinds are competing for the same talent,” says Lexi Clarke, chief people officer at Payscale. “Employers must have a compensation strategy built on data to guide their salary increase budgets, or they risk losing top talent this budgeting cycle.”  

    ***** ***** ***** ***** ***** 

    Source: HRO Today

    https://www.hrotoday.com/news/ticker/u-s-employers-forecast-3-5-pay-increases-in-2025/

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