Healthcare Reform's Effects on Employee Recruitment and Retention
The effects of healthcare reform legislation go far beyond providers and payors, extending into the workplace. Employers big and small will feel the impact, whether through coverage mandates or tax credits, and wading through the soon-to-come regulations will keep human resources managers busy for the foreseeable future.
But beyond compliance, there are other aspects of healthcare reform that merit consideration. With coverage more accessible, healthcare benefits will no longer be the recruitment carrot they once were, particularly for smaller companies. On the other hand, Human Resource Executive Online speculates some small companies exempt from coverage mandates may now be more attractive to young workers who will now be covered by their parents’ plans until age 26. What happens once these employees reach age 26 remains to be seen.
Healthcare benefits also lose pull as a retention tool. Prior to reform, the phenomenon of "job lock" existed: workers with employer-sponsored health insurance stayed in their jobs simply to hold on to their health benefits. Easier access to coverage and elimination of an insurance company’s ability to deny coverage because of pre-existing conditions, mean one less reason for an unhappy or unfulfilled employee to stay in a job. Granted, an employee experiencing job lock probably isn’t going above and beyond to add value to the company, but if they’re productive, there’s a hole to fill when they leave.
There are a couple of lessons to be learned as an employer. First, spend some time getting comfortable with the ins and outs of the legislation as it relates to the workplace. More important, spend some time thinking about your organizational culture. Figure out what attracts individuals to your company and figure out why they stay. If it’s only because of your benefits package, you have even more thinking to do.
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