Those are the words of American patriot, founding father, and third U.S. President Thomas Jefferson. When you read something so simple, yet so profound, you understand why Jefferson was such an historic persona and shaper of history.

 

As you look at the workforce of the future, a revolution is indeed on the horizon. What’s coming is the generation that follows the Millennials or is the late stage of the Millennial Generation. Some call the new generation Gen F, some call it Gen Z, and others use the monikers Pluralists, Homelanders, or Re Gens. There’s a bit of debate about exactly when one generational boundary ends and another begins (generally, experts they say this new generation started to be born in the second half of the 1990s and extends to today’s newborns), but experts agree that it will hit the global corporate landscape with a bang.

 

Regardless of what you call them, it’s time for you to know and understand what your future workforce will look like — and how to attract the best possible talent to make it a success.

 

 

 

“F” is for your future.

 

The “F” in Generation F started with “Facebook” and refers to a demographic of future employees whose skills, expectations, and demands vary greatly from those of their predecessors. This group also has been labeled Generation Z, a term less widely regarded because it may imply the end of an era. It’s also been referred to as Pluralists, for its general embracement of diversity, as Homelanders, because its members have grown up in an era of domestic and international uncertainty, and as Re Gens, because of its awareness of and commitment to the environment.

 

Catchy names aside, we’re talking about adolescents and young adults on the cusp of college and/or their impending entrance into the global workforce.

 

 

 

What do they look like?

 

This new generation of future leaders has grown up with social media and the Internet. They’re a step ahead of earlier Millennials who, though naturally tech savvy, still had to adapt to these online tools. Members of Generation F have never known anything other than being perpetually connected. Cell phones and tablets are not novelties to them; they’re simply part of life. As a result, they approach their career aspirations differently — they expect their work life to mirror the context of the social media that has been at the very core of their existence.

 

Let’s paint a picture of this up-and-coming demographic segment. They are:

 

§ Concerned about the economy. As much as the Internet was a “given” to this demographic group, so was the tendency to do more with less, as many of them entered their formative years during the onset of the Great Recession. This has made them more fiscally conservative, willing to compromise, and unwilling to incur large amounts of debt. Social researcher Tammy Erickson has called them “a generation of renters” because they tend to be less likely to need ownership and more open to waiting to make a major purchase until they can afford it.

 

§ Environmentally aware. Their tendency towards fiscal conservatism has made this generation ultra-conscious of issues such as recycling, reuse, and looming shortages of energy and water. As a social bloc, they tend to be more thoughtful and egalitarian with shared resources.

 

§ Relatively indifferent to technology. Compared to their immediate predecessors, Re Gens have an “unconscious reliability on ubiquitous connectivity,” as noted by Penelope Trunk, founder and author of the workplace blog “Brazen Careerist.” The Internet has always been around for them, so they “aren’t absorbed in technology… they grew up with it.”

 

§ Attentive to the needs of others. Neil Howe, president and co-founder of the Virginia–based marketing firm Lifecourse Associates, who coined the term “Homeland Generation,” notes that many members of this group are products of attachment or “helicopter” parenting. As an offshoot of this parenting style, Homelanders tend to be emotionally attentive to the needs of others and good at working in teams.

 

§ Likely to dodge conflict. These workers of tomorrow are categorized as well-behaved, trusting, smart, and high-achieving. Howe likens them to “the generation of the late 1940s or early 1950s.”

 

 

 

How do you attract them?

 

Because they are transforming the way work gets done, members of this emerging workforce group are the catalysts for a major paradigm shift in recruitment and staffing. To attract the best of them, you’ll need to ensure that your organization has:

 

§ Leaders who will actively listen to and meet the needs of all employees, maintaining two-way dialogue and ongoing conversations.

 

§ Self-defined and self-governed work groups. In online communities, you follow, link to and share with individuals and groups of your own choosing. To stay in tune with your workforce and what makes it tick, you’ll need to let employees create their own project teams, establish mutually beneficial goals and objectives, and self-monitor their progress.

 

§ Diversity and equality. The demand will be for a work environment where employees at all levels have equal ability to control company conversations and have their ideas taken seriously.

 

§ A “market economy” resource model in which human currency — such as time, attention, and effort — flows naturally toward ideas and projects that are attractive to employees and away from those that are not.

 

Yes, they’re getting more sophisticated. And it feels like work and life are falling into a new level of alignment, as the employees and leaders of tomorrow embrace their natural tendencies to be technically savvy, financially conservative, environmentally aware, considerate of others, self-motivated and inclined to place high value on effective communication. Not such a bad thing, when you think about it.

 

It’s the way of the future — and in the upcoming global marketplace, it’s the way of the world. So learn about it, embrace it, and welcome tomorrow’s workforce with open arms. Because, like it or not, here it comes.

 

 

 

This article was excerpted and edited from the August 2013 issue of the “Staff Matters” e-newsletter, provided by and reprinted with the permission of Salina–based Contemporary Personnel Staffing, Inc. (CPS) & Professionals, Inc. (www.cpsprofessionals.com).

 

 

 

 

The Patient Protection & Affordable Care Act (ACA) requires all group and individual health plans to provide applicants, enrollees, and policyholders (or certificate holders) with documentation outlining their benefits and coverage. The “Summary of Benefits and Coverage”  (SBC) document comes in a standardized format containing information about health-plan coverage that is supposed to allow consumers to easily identify and compare the benefits available to them.

 

The final regulations on SBCs and the related Uniform Glossary, including model templates and instruction guides, were issued Feb. 14, 2012. The Departments of Labor, Health & Human Services, and Treasury began addressing some of the concerns surrounding SBC implementation in numerous “FAQs About Affordable Care Act Implementation.” FAQs VII, VIII, IX, X, and XIV address the SBC requirements. 

 

The SBC rules became effective in 2012 and continue to apply in future plan years. The final regulations apply to group health plans and health-insurance issuers. The requirement does not apply to stand-alone retiree health plans or benefits that qualify as HIPAA-excepted benefits such as stand-alone vision or dental coverage. Plans must provide SBCs to currently enrolled employees, former employees and their covered dependents, as well as anyone who is eligible to enroll in the plan. 

 

FAQ VIII clarified which circumstances will trigger the requirement to provide an SBC to a participant or beneficiary in a group health plan.  Generally, plans or issuers must provide the Summary of Benefits and Coverage at the time of application for coverage, upon renewal of coverage, at the time of a special enrollment, and upon request. The timing requirements for SBC distribution vary depending on which of these events occurs.

 

In general, plans must provide the SBC along with annual open enrollment materials, no later than 30 days prior to the first day of the new plan or policy year, if a plan allows automatic renewals of coverage. Plans must provide the SBC to special enrollees within 90 days after coverage commences. 

 

At times other than open or special enrollment, plans must provide the Summary of Benefits and Coverage with any written information provided by the plan as part of the enrollment process or, no later than the first day the individual becomes eligible, if the plan does not provide any such written materials.

 

If any of the information on the SBC changes between the time of application and before the first day of coverage, plans must provide an updated SBC no later than the first day of coverage. Plans must also provide an SBC within seven business days of a request, and if the document is provided electronically, recipients must have the option to receive a paper copy upon request.

 

The FAQs also provided much-needed relief from the rigid SBC template requirements, allowing plans and issuers to make minor adjustments to the SBC format, such as changing row and column sizes, eliminating the need to repeat the header and footer on every page, and permitting information to roll from one page to another, provided the information is understandable.

 

FAQ VIII and IX provided clarification on the electronic-delivery standards, and provided sample language for a postcard or e-card to be used in connection with website posting of the SBC. FAQ VIII also provided guidance on the requirement to provide the SBC in a culturally and linguistically appropriate manner.

 

The federal agencies provided clarification on the second-year requirements on April 23, 2013, in FAQ XIV. While the departments originally anticipated adding a third coverage example for the second-year SBCs, FAQ XIV states that the departments are not going to require a third-coverage example at this time. FAQ XIV extends the various enforcement relief provisions from the first year of applicability, including the coverage-example calculator safe harbor. 

 

The federal agencies provided a new second-year SBC template, which now includes two statements regarding whether the plan provides minimum essential coverage and minimum value. FAQ XIV allows plans that cannot add these two new paragraphs to continue to use the first-year template, and provide the required information by cover letter or similar disclosure instead.  FAQ XIV also permits plans to remove the template material on annual dollar limits. 

 

The departments reiterate in FAQ XIV that their basic approach to ACA implementation, including the SBC requirement, will continue to emphasize assisting, rather than imposing penalties on, plans, issuers, and others working diligently and in good faith to understand and comply with the law.

 

As insurance companies, employers, and third-party administrators work to interpret, understand, and comply with the 2014 ACA requirements, knowing the departments are continuing to adopt this approach is welcome news.

 

 

 

Amy Zell is staff attorney and plan benefit analyst at POMCO Group. Contact her at azell@pomcogroup.com or view her blog posts on health-care reform at go.pomcogroup.com/blog

 

 

 

 

 

 

Another summer season is rapidly drawing to a close. Once again, the calendar appears to fly by. The changing of the seasons prompts myriad topics for this column. That is to say, the recommendations and suggestions that follow should be addressed by your organization before the fall season turns to winter.

 

As is my custom, the following 10 regulatory-compliance areas may require your attention and action depending upon the programs and services offered by your organization.

 

 

 

1. Compliance with unclaimed property reporting requirements

 

Virtually every corporation, including tax-exempts, has an obligatory requirement to voluntarily report unclaimed property to the Office of Unclaimed Funds (OUF) at the New York State Comptroller’s Office. For most tax-exempts, payroll checks (three years) and vendor checks (five years) that are not cashed and remain outstanding on your bank reconciliations are the most common source of unclaimed funds. Make sure you are in compliance with the requirements of the OUF. The website that provides the necessary information is located at http://www.osc.state.ny.us/ouf/. Pay particular attention to the frequently asked questions section, since the reporting requirements are rather byzantine.

 

 

 

2. Sales tax compliance for tax-exempt organizations

 

The New York State Sales Tax Department continues to monitor and audit tax-exempt organizations for purposes of verifying sales-tax compliance as well as recouping funds for the State Treasury. Changes are made frequently and, as a result, we have found the majority of our tax-exempt clients having responsibility for sales-tax collection and remittance.

 

For example, in the past few years, the following areas were added to the extensive list of taxable items. Please review the following to the extent that they relate to your organization:

 

§ Any lease or rental of tangible personal property

 

§ Maintenance, service, or repair of real property

 

§ Most utility services sold to others

 

§ “Regular” sales of any property by telephone, mail order, or the Internet

 

A management-team member in your organization should be designated with the specific responsibility for maintaining sales-tax compliance.

 

 

 

3. Independent contractor rules and compliance

 

Federal and state auditors are routinely enforcing the governmental definition of an independent contractor versus an employee. In most cases, government enforcement is focused on re-classifying independent contractors as employees, so that the employer has responsibility for withholding taxes, Social Security, and Medicare tax obligations. A list of 57 criteria (Form SS-8) for determining whether an individual qualifies as an independent contractor or an employee can be found at http://www.irs.gov/pub/irs-pdf/fss8.pdf.

 

 

 

4. Exempt vs. non-exempt employees — are you liable for overtime that you are not paying?

 

Department of Labor (DOL) audits are becoming routine with a specific focus on whether individuals qualify as exempt (i.e., salaried with no overtime paid) versus non-exempt. In addition, you will find that the DOL does not believe that non-exempt employees “eating at their desk” qualifies as a mandatory lunch break. This area requires a review by your HR department to ensure that your policies and day-to-day reality match DOL compliance requirements.

 

 

 

5. Conflict of interest disclosures by board and management

 

Many tax-exempt organizations have calendar-year ends and will be filing Federal Form 990 by May 15, 2014. As such, the fourth quarter is an opportune time to verify that all management and board conflict of interest statements have been properly obtained. By doing so, you will be able to provide an affirmative answer to the Form 990 question related to conflicts of interest.

 

 

 

6. Obamacare and its impact

 

There are daily news reports regarding the Patient Protection and Affordable Care Act, also known as “Obamacare.” Many of its regulatory provisions are scheduled for implementation as of Jan. 1, 2014. The recent deferral of the “employer mandate” requirements to Jan. 1, 2015, has created a false sense of compliance relief for many employers. For more information on this topic, visit www.bonadio.com/blog to view last month’s column.

 

 

 

7. Proposed New York legislation — Nonprofit Revitalization Act

 

Currently being debated by state legislators, I expect it to be passed in some form. The framework for this legislation was published by New York Attorney General Eric Schneiderman in his “Nonprofit Reform and Revitalization Report” during the first quarter of 2012. Whether all of his recommendations are included in the final legislation is somewhat irrelevant. The attorney general clearly views his recommendations as “appropriate best practices.” Therefore, a member of your management team should be assigned responsibility for completing a gap analysis. This process will identify any required modifications to your existing policies and procedures.

 

 

 

8. Medicaid enrollment increases as of Jan. 1

 

One of the major provisions of Obamacare is a significant change in the eligibility requirements for Medicaid benefits. Specifically, the individual income thresholds are being increased to 133 percent of the federal poverty limit. This single change is estimated to add 1 million New York citizens to the Medicaid eligibility rolls. The increase in Medicaid eligibles from 5 million to 6 million New Yorkers (25 percent of our population) may have a sweeping and significant impact on tax-exempt organizations’ programs and services. If not already addressed, every Medicaid service provider should perform a strategic-positioning analysis in response to this influx of new Medicaid enrollees.

 

 

 

9. Health-insurance benefits for your employees

 

Time is growing short for employer decisions regarding health insurance benefits offered to employees. Specifically, each organization should address the following three questions:

 

§ If health-insurance benefits are currently offered, what changes in the employee benefit should be implemented?

 

§ Based on Obamacare requirements, what employer changes must be implemented to comply with this massive health-care legislation?

 

§ From an employer’s perspective, is it beneficial to consider the elimination of employee health-insurance coverage? If the answer is yes, elimination could result in a salary adjustment for the lost benefit and having employees “shop” for their own health insurance.

 

 

 

10. Liability insurance rider for EFT / ACH transfers and cyber crime

 

Most general-liability insurance policies do not cover employer risk related to cyber crime. Specifically, a hacker gaining unauthorized access to your network may be able to initiate Electronic Fund Transfer / Automated Clearing House wires without your knowledge. Please contact your insurance agent or broker and make sure that you clearly understand the coverage, if any, currently provided. A conversation with your bank relationship manager is also appropriate. If an insurance rider or other coverage modification is required, process it immediately or as soon as possible.

 

Every organization struggles with the challenges associated with regulatory-compliance matters. Your organization can mitigate future risk by addressing the topics discussed in this column.

 

If done promptly, you can then fully enjoy your fall foliage tours.

 

 

 

Gerald J. Archibald, CPA, is a partner in charge of the management advisory services at The Bonadio Group. He can be reached at (585) 381-1000, or via email at garchibald@bonadio.com