Human Resource Management …What does it really mean?

1. Human Resource Management …What does it really mean? Traditionally Defined As…….. Simplified: The function dealing with the management of people employed within the organization. Formal: The formal structure within an organization responsible for all the decisions, strategies, factors, principles, operations, practices, functions, activities and methods related to the management of people. But that’s not ALL human resource manager’s do these days!

2. Other Duties • Depending on the size of the organization, the person responsible for human resources issues typically must be able to multi-task: • Benefits • Workers’ Compensation • Safety Regulations Administration Communication

3. Today’s Goal • My goal is to share with you a practical way to address several of these disciplines. Benefits Regulations & Compliance Safety HR

4. SAFETY OSHA requires Employers to provide their employees: • A safe workplace that does not have serious hazards and follow all relevant OSHA safety and health standards. • Employers must find and correct safety and health problems. OSHA further requires employers to try to eliminate or reduce hazards first by making changes in working conditions rather than just relying on masks, gloves, ear plugs or other types of personal protective equipment (PPE). Switching to safer chemicals, enclosing processes to trap harmful fumes, or using ventilation systems to clean the air are examples of effective ways to get rid of or minimize risks. • Inform employees about hazards through training, labels, alarms, color-coded systems, chemical information sheets and other methods. • Keep accurate records of work-related injuries and illnesses. • Perform tests in the workplace, such as air sampling required by some OSHA standards. • Provide hearing exams or other medical tests required by OSHA standards. • Post OSHA citations, injury and illness data, and the OSHA poster in the workplace where workers will see them. • Notify OSHA within 8 hours of a workplace incident in which there is a death or when three or more workers go to a hospital. • Not discriminate or retaliate against a worker for using their rights under the law.

5. SAFETY Safety has a distinct impact on the bottom line. It affects: • Workers’ compensation “Scheduled Credits” • Workers’ compensation “Premium Discounts” • Experience Modification Rate (“EMR”)

6. SAFETY • If your claims are high you lose all of your credits and discounts. • A rising EMR above “1.0” results in your WC premium increasing. Instead of receiving credits you now get debited! • It takes three (3) years to remove the negative impact from one bad WC claim or a series of them.

7. SAFETY So how do you control your destiny? • Establish a Safety Program that’s integrated with your Employee Review Process. You need to: - Establish a Safety Committee - Create written safety programs - Conduct safety training programs - Review and Remodel your employee review system - Modify your compensation programs to include safety performance - Implement a “Return to Work” program - Meet your local clinic • Sample Program Outline

8. SAFETY • New OSHA Standard Effective 3/21/12: • Hazard Communication Rule……..

9. BENEFITS • Basic Provisions/Requirements • Employee Retirement Income and Security Act of 1974 (ERISA) sets uniform minimum standards to ensure that employee benefit plans are established and maintained in a fair and financially sound manner. In addition, employers have an obligation to provide promised benefits and satisfy ERISA's requirements for managing and administering private retirement and welfare plans. • Employee Benefits Security Administration (EBSA), together with the Department of the Treasury’s Internal Revenue Service (IRS), has the statutory and regulatory authority to ensure that workers receive the promised benefits. EBSA has principal jurisdiction over Title I of ERISA, which requires persons and entities that manage and control plan funds to: • Manage plans for the exclusive benefit of participants and beneficiaries; • Carry out their duties in a prudent manner and refrain from conflict of interest transactions expressly prohibited by law; • Comply with limitations on certain plans' investments in employer securities and properties; • Fund benefits in accordance with the law and plan rules; • Report and disclose information on the operations and financial condition of plans to the government and participants; and • Provide documents required in the conduct of investigations to ensure compliance with the law.

10. BENEFITS • Most popular employer provided benefits: • Medical • Dental • Basic Life • Employer’s should consider adding: • Short-Term Disability • Long-Term Disability • Optional Life • Wellness • Screenings • Memberships to gyms • Carrier programs

11. BENEFITS • Activities: • Open Enrollment - Know you’re the period for your open enrollment - Communicate any changes in benefit plans - Provide detailed information regarding Employee Contributions - Get signatures on applications and waivers - Validate that all changes were processed correctly - Finally, confirm that ID cards were delivered

12. BENEFITS • Activities: • Qualified Events: • Events qualifying employee and dependent(s) for up to 18 months coverage: - Employee termination of employment - Employee retired - Employee was laid off - Employee's working hours were reduced • Events qualifying employee and dependent(s) for up to 36 months coverage: - Employee died - Employee was divorced or legally separated - Employee becomes entitled to Medicare - Dependent child no longer covered by the Companies Health Benefits Plan • Events entitling qualified beneficia(ies) up to 29 months extended coverage: - Qualified beneficia(ies) defined as disabled according to Social Security Administration • Information Summary of Illinois Continuation and Federal COBRA

13. BENEFITS • New Law Effective 9/23/12: • Summary of Benefits and Coverage • Sample of Rule • Sample Summary of Benefits

14. Guardian Terry Walsh  (Central Division Executive Director) P. 317-815-8172  M. 317-439-1614  F. 317-566-9151 1991 E. 110th Street, Indianapolis, IN 46280

15. Providing the right benefits solution, one client at a time. Key Reasons to Put Guardian to work for you MORE OPTIONS | MORE INNOVATION | MORE VALUE The Guardian Life Insurance Company of America7 Hanover Square, New York, NY 10004

16. Stability: The basis of who we are A Mutual Company with the Demonstrated Ability to Meet the Long-Term Needs of our Customers 99 A++ Comdex Score (composite percentile financial strength ranking) A.M. Best Rates Guardian: A++ Superior ability to meet ongoing obligations to policy holders A+ A Standard & Poor’s AA+ Very Strong Fitch AA+ Very Strong Moody’s Aa2 Excellent Comdex ratings in parentheses. Financial ratings as of January 2012 Ratings as of January 2012

17. Let’s get started From productive discussion emerges productive results Today, we’ll look at: • Factors influencing the benefits decision • Why Guardian is best equipped to deliver • Our recommendations for a successful employee benefits strategy

18. Many factors impact the benefits decision Given today’s environment, making the right decision is critical There’s general confusion around benefits Budgets are shrinking The economy is still a challenge Reform is here What’s right your client? Cost of care continues to rise Productivity & wellness are more important than ever Employee benefits is key to retaining top talent Resources & time are limited

19. Guardian Overview A leading employee benefits provider • Full Product Line (With availability on a voluntary basis!) Dental Short Term Disability Long Term Disability • Life Vision Critical IllnessFML Administration Section 125 EnrollmentWorksTM • A Market Leader • Dental:#1 in total in-force dental cases 8 of the last 9 years, 6,000,000 active members National dentist network 70,000 dentists &131,000 locations Network average discount of 38% • Disability: #1 in fully-insured & in-force STD cases, #2 in in-force LTD cases, • Life: #3 in sold Life cases • Vision: Large national network options with Davis Vision and VSP • Innovative & Flexible Plan Designs • Superior & Industry Leading Financial Strength & Stability • Exceptional & Responsive Professional Staff • Excellent Partner to Producers

20. Guardian – Customer Service Service highlights and commitments in the Illinois market • Enrollment Success Plan (ESP) - Making Voluntary Benefits Worry-Free • Guardian will waive minimum participation with ESP • A simple plan designed to maximize successful enrollment practices • Can increase enrollment by up to 60% • Generally employer size requirements: 16+ - Dental only cases; or Dental with Vision 50+ - Vision only; all Disability or Life • Work with your Guardian rep to see if your case qualifies • E-POD – Customized, Professional Enrollment Materials to Maximize Success • Personalized to each Employee • Available in English or Spanish • Guardian Customer Service Highlights • Significant Midwestern presence – local office, and 500+ regional home office employees in Appleton (including underwriting). • Custom service options: Customer Response Unit GuardianAnytime.com Broker / Planholder services Member Services and much more…

21. An integrated enrollment experience • One engaging document with everything to make an informed decision • Education on available coverages • Explanation of plan options • Glossary of terms • Step-by-step instructions on how to enroll • Can be personalized* • Employee name featured • Enrollment form pre-populated with employee’s demographic info and appropriate cost • Minimal need for HR involvement Enrollment form Pre-populated demographic data and employee-specific costs for life and disability coverages *Group must offer one or more of the following employee benefits: Voluntary Life or Voluntary Disability

22. Pre-Enrollment Communications

23. Nationwide team of Benefit Advisors • Certified enrollment specialists committed to educating employees • Available to conduct face-to-face enrollment meetings and answer questions • Results in better comprehension of options, boosting participation • Local support available in Illinois

24. Health Care Reform and its Impact on Ancillary Employee Benefits

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26. Guardian Dental – ASO Options ASO solutions to reduce costs and benefit the Employer • ASO Savings Opportunities for Employers • ASO plans save employers money Lower expense loads Savings through lower claim costs. Cash flow benefits to employer • Available down to employers with 25 employees – a unique Guardian option • Can be employer or employee funded (voluntary or contribution) • Avoid insured program impact by PPACA Tax -- $8B in 2013; $14B in 2017. • ASO Hybrid – Excellent Option with Stop Loss Protection • ASO model with 105% Aggregate Stop Loss to limit risk. Innovative option not available from most Dental carriers. GUARDIAN offers ASO • Employer gains ASO benefits with limits on upside risk. down to 25 employees! • Innovative option not available from most other carriers

27. REGULATIONS & COMPLIANCE • Depending of the size of your organization you are impacted by different rules. The determining factor for which local, state and federal laws effect your company is broken into the following categories: • Under 15 Employees • Over 15 Employees • Over 50 Employees

28. REGULATIONS & COMPLIANCE • Where can you go to determine which local, state and federal laws affect your organization…… www.dol.gov OR Your Insurance Broker OR Professional Affiliations

29. REGULATIONS & COMPLIANCE • New Law effective so far in 2012: • Genetic Information Nondiscrimination Act (GINA) (which impacted your FMLA forms) • Revised FMLA forms (as a result of GINA) • Employee Rights Notice Posting • Baker Donelson Link