Tips for Managing During the Great Reshuffle

The Great Reshuffle—a mass movement of workers leaving jobs with which they are not satisfied—shows no signs of slowing down. As Generation Z and Millennials begin to make up more of the workforce, it has become clear that values and priorities have shifted from those of previous generations. Furthermore, unemployment rates are down, and the employment market is currently very worker-friendly. The combined effect of these factors is that employees more readily move between different jobs to find those that align with their priorities and desires. This often means seeking out better compensation or benefits, workplace flexibility, career development opportunities or the right culture fit.

The Great Reshuffle can make for a challenging environment for employers, but several tips can help mitigate the issues employers may face. Consider the following strategies:

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Tips for Managing During the Great Reshuffle

Total Compensation Statements and Today's Talent Challenges

Pay stubs typically show an employee’s salary, bonuses, taxes and other deductions, but many benefits employers provide employees may not appear. While some absent benefits may be obvious, others may be overlooked or are easily forgotten by employees. A total compensation statement provides employees with a broader understanding of what benefits their employer provides.

Organizations use total compensation statements to not only help employees understand their full compensation packages but also build loyalty and increase retention. After all, in the current labor market, employers need to do everything possible to bring in and keep employees. Utilizing total compensation statements may be one strategy to help employers address their attraction and retention challenges.

Strategies for Avoiding Litigation Over COBRA Notices

Employers are seeing an increase in lawsuits from former employees alleging deficient Consolidated Omnibus Budget Reconciliation Act (COBRA) election notices. These lawsuits are generally class actions and can result in significant attorneys’ fee awards for successful ex-employees. Understanding current COBRA notice regulations and litigation trends can help employers stay compliant and avoid costly lawsuits.

What Is a COBRA Notice?

Most employer-sponsored group health plans must comply with the Employee Retirement Income Security Act (ERISA), which establishes standards for protecting employee benefits. One protection established by ERISA is an employee’s right to continued health insurance coverage under COBRA.

COBRA allows former employees and their families to continue their health insurance for a limited time after a qualifying event. Qualifying events include:

  • Termination of employment
  • Reduction of work hours for reasons other than misconduct
  • Death
  • Medicare eligibility
  • Divorce
  • A child’s loss of dependent status

Employers must provide former employees with notice that they may elect to continue their health coverage.

Inflation Increases to 9.1% in June, Reaching a 40-year High

The Bureau of Labor Statistics announced that the U.S. consumer price index (CPI) rose 9.1% year over year in June 2022. This is the highest level since December 1981, surpassing last month’s record 8.6% reading and even economists’ predictions of an 8.8% CPI increase in June. Americans paid sharply higher prices for various goods in June as inflation kept its hold on the economy.

The increases were felt across all categories but notably impacted gasoline, shelter and food. Gasoline prices were up nearly 60% over the year in June; the American Automobile Association reported the national average at the pump was $5.01 per gallon. In general, energy prices rose (by 41.6% year over year). Electricity prices rose 13.7%, and natural gas prices increased 38.4% year over year in June.

Prices for food at home increased 12.2% over the year, significantly driven by cereals, dairy and meats. Food away from home trailed slightly behind at 7.7% in June.

Employee Quits Continue Downward Trend in May from All-time High

The U.S. Bureau of Labor Statistics (BLS) recently released its May Job Openings and Labor Turnover Summary. The number of employee quits continued to fall for the second month in a row; May’s reported number of employee quits fell to around 4.3 million, down from 4.4 million in April and from a record high of 4.5 million in March.