HR company publishes top 5 HR trends to watch for in 2012

As the business of HR continues to revolutionize and grow, many trends can be named for what is expected in the future. HR company CanopyHR Solutions has narrowed down the possibilities and compiled a list of the top five HR trends coming down the pike in 2012:

1. SaaS and cloud technology. Tech buffs are over the moon about cloud computing and Software-as-a-Service (SaaS), innovations that are reshaping the way HR technology functions. "The cloud" is where data and applications-including SaaS data and applications-can be remotely stored and accessed on demand from any device with Internet access. SaaS is also referred to as "on-demand software," a pretty straightforward description of both its function and its advantage. Users can now access not just files and data remotely, but the software they use to manipulate that data. This unprecedented access has the potential to revolutionize the ways companies manage critical HR processes and evolve HR to contribute even more to their success. Cloud computing streamlines recruiting, screening, payroll and both workforce and performance management, among other functions. It also allows for rapid deployment of pre-configured technology solutions and quickly connects HR initiatives throughout any size company. These are just some of what makes cloud technology such a powerful tool in both cost control and greater effectiveness.

2. HRMS implementation. Heaping additional duties on a busy HR team requires meticulous management. Technology saves the day again here with robust Human Resources Management Software (HRMS) programs. The best are designed to simplify tasks related to managing employees and workforces, although there are also features available to ensure compliance with tax laws and healthcare reform mandates. Automation and built-in controls help HR professionals maintain accuracy and increase efficiency-freeing them up for the additional responsibilities many HR departments are beginning to take on.

3. Going paperless. Early promises to go paperless failed to materialize, but technology has finally evolved to support the delivery of paperless workplaces in a practical way that works in the real world. Again, we have cloud computing to thank for these solutions, which allow for secure information sharing with designated HR personnel. Benefits abound. Secure information access helps facilitate telecommuting, an option that makes a company more attractive to some of the best employees. And by making that access more efficient-employees can store, search, retrieve, copy and send documents much more quickly-so, productivity also gets a big boost. Carefully designated access rights, tracking and routing increase the speed of business while simultaneously increasing accountability. The ability to retain electronic document copies is an easy sell among companies concerned about compliance with HIPPA, OSHA, the EPA and tax auditors, because failure to maintain proper documentation can often carry stiff penalties. The benefit to a green environment is obvious; less paper consumption and waste means lower costs-including costs to the planet.

4. Contingent workers. The search for an adaptable workforce and labor cost containment has sent utilization of contingent workers skyrocketing. The sector comprises consultants, temps, freelancers and contractors — those who can get the job done but aren't on the official payroll. Companies are finding that these flexible non-employees can bridge the gaps in skills and talent left by retiring Baby Boomers and a pared-down workforce. As independent talent, these workers aren't entitled to benefits packages and they're not subject to the same payroll taxes as permanent employees. Because they're not part of the organized workforce, this segment can provide challenges when it comes to inadequate technology and resources, poor data management and spotty communication of company policy. Ideal handling of a contingent workforce relies on HR pros with a solid understanding of their unique requirements.

5. Workplace wellness. A broken healthcare system and soaring costs have inspired countless employee-benefits managers to find new solutions that add options without piling on costs. Many are opting for wellness programs, which add a layer to health insurance offerings as well as lowering costs, increasing productivity and demonstrating a responsible commitment to employees. The surge in popularity of wellness programs couldn't come at a better time; Americans are struggling with preventable conditions like obesity, diabetes and respiratory health problems at record numbers. Those chronic conditions eat up as much as 75 percent of healthcare spending in the United States. Wellness initiatives target things exercise, quitting smoking and weight management. Companies that offer employee incentives for addressing these health concerns may find themselves with healthier, happier employees and insurance savings that could potentially offset the program costs.

Source: CanopyHR Solutions; www.canopyhr.com.

Staffing Decisions and The Conference Board Employment Trends Index (ETI)

Health reform law will boost demand and government costs, while expanding coverage

This article below from CCH, a leading provider of business news, provides insight into how Health Care Reform is performing to date and sheds light into what is expected through to 2014.

In 2014, the year that the Patient Protection and Affordable Care Act is set to expand health insurance coverage, growth in health care spending is expected to reach 8.3 percent, according to estimates by a group of economists from the Centers for Medicare & Medicaid Office of the Actuary.

The PPACA is expected to boost demand for medical services, particularly for prescription drugs and physician and clinical services, the economists noted. By 2020, the federal government’s share of health care spending will reach 31 percent (from the current 27).

Average annual growth in national health spending is expected to be 0.1 percentage point higher (5.8 percent) under current law compared to projected average growth prior to the passage of the PPACA (5.7 percent) for 2010 through 2020.

Total government spending, including federal, state, and local governments, is expected to reach nearly 50 percent in 2020. The number of uninsured will be lower by nearly 30 million. These projections are reviewed in the article, “National Health Spending Projections Through 2020: Economic Recovery And Reform Drive Faster Spending Growth,” published in the July 2011 issue of Health Affairs.

In 2010, health spending is estimated to have grown at the rate of 3.9 percent, and a total of $2.6 trillion ($8,648 per person) due partly to the recession which caused many people to lose their health insurance when they lost their jobs. Health spending in 2010 represented 17.6 percent of gross domestic product. At the same time, health spending by private sources grew by only 2.6 percent to $822.3 billion for insurance premiums and the number of people covered in private plans fell by 5 million. Benefits paid by private plans amounted to $725.5 billion, a nearly $100 billion difference from premiums paid. Out-of-pocket spending rose by only 1.8 percent as the cash-strapped population put off seeking medical care and treatment.

The CMS economists project that out-of-pocket spending will grow faster through 2013, by an average 3.2 percent annually, as the U.S. economy recovers and the number of people with disposable income rises, along with more employers offering higher cost-share plans. Plans covering individuals with preexisting conditions and the expansion of coverage for young adult children to age 26 will result in an additional 1.6 million individuals covered in 2013.

In 2014, about 22.9 million new insureds will have coverage through expanded Medicaid and the new state health insurance exchanges, leading to an 8.3 percent spending growth, but a 1.3 percent drop in out-of-pocket spending, the CMS economists projected. The spending due to the coverage expansion is expected to more than offset Medicare savings obtained through the PPACA. A recent Standard & Poor study of the national health index found that Medicare spending increase rate has slowed to 2.64 percent, even before the full implementation of the PPACA.

Also in 2014, the growth in private health insurance premiums is projected to reach 9.4 percent (4.4 percent higher than without the PPACA), as 13.9 million people get coverage through the new state health insurance exchanges. Private health insurance will account for about 31 percent of national health spending, about the same as without the PPACA.

Because many of the new insureds will be younger and healthier and less likely to use hospitals or other more intensive services and the coverage expansion will allow a shift to preventive services, from more costly treatment for delayed, necessary care. Thus, by 2020, spending for prescription drugs and physician services will represent a higher share of health spending, 11 percent and 19 percent, respectively, while the share represented by hospital spending will drop to 30 percent. The excise tax on high cost health insurance plans likely will slow the growth in use of medical services and health spending beginning in 2018, as plan sponsors work to shift employees to lower cost, less generous, plans. While the share of national health expenditures will increase to 49 percent for governments (31 percent federal and 18 percent state and local), the share paid by private will fall to 18 percent, while households’ share will stay the same at 26 percent.