University Business - November 2006 - (Page 28)

HUMAN RESOURCES 10 percent. Duke created this program long careers to retire with $200,000 of is important, he says some also create fast back in 1998. So far, 11,400 employees sick leave credits to pay for their health career tracks for high achievers. participate, with discounts currently for care insurance. Then post all of these benefits online. 350 businesses, including restaurants, de- When people are thinking about a Translate them into dollars, too, so that partment stores, restaurants, and even car job or career change and they're approach- their value is clearly spelled out to employ- dealerships. ing that 15-year mark, it entices them to ees and job seekers. Another Duke program is College Con- stay, Chamberlain says. It's [also] a real One mistake some schools make is nection. Students, under faculty sponsor- plus for recruitment purposes because it's they assume that just because their sala- ship, volunteer to meet with support ser- very unique. A lot of people are concerned ries are competitive, they can skimp on vice or entry-level employees whose chil- about paying for post-retirement health benefits. That may have been the case dren want to attend college. They coach care insurance. years ago, but not in today's job market. them on the college admission process and Since many colleges and universities have how to obtain financial aid. It's a valuable, a strong benefits package, each institution Duke students volunteer free resource, says Davidson, adding that must differentiate itself. 31 parents have participated since the pro- Look down the road. What will em- to coach support service gram began last spring. ployees need or want? Consider what the or entry-level employees The school also offers a benefit called University of Wisconsin System offers its Prospective Health with a demonstrated faculty and instructional staff who work whose children want to return on investment. Employees were nine months out of the year: They each attend college. divided into three groups based on the receive 12 days of sick leave annually. And, cost of their health insurance claims and as with many public entities, there's no medical diagnosis. Those in the high-risk MORE OPTIONS limit as to the amount that can be carried or intensive group were voluntarily con- Sometimes, an institution doesn't need to over, says Susan Chamberlain, the school's nected with health care coaches who work introduce new benefits. Instead, officials assistant vice president of HR. with their doctors in developing custom- can consider expanding existing ones. When employees retire, the university ized diet and exercise plans, addressing Tuition assistance is a good example. takes all of their unused sick days, mul- preventive measures, and monitoring their The majority of Duke University N.C. tiplies them by eight hours per day, and prescriptions and testing. Of the 1,000 employees who have worked there for at then multiplies that total by their highest employees who currently qualify, 600 par- least five years can receive financial aid for hourly rate of pay during their university ticipate. So it's clearly seen as a benefit. their children who attend college, even career. That translates into a dollar amount The program is a benefit to the school's outside the state. After they pay $1,800 of sick leave credits, which is placed into bottom line, too. Since the program be- per semester deductible, Duke will reim- a credit account with the school's pen- gan in 2004, this group's claims costs have burse them up to 75 percent of the price sion fund provider. Those virtual funds been reduced by $1.2 million. The average of Duke's tuition for full-time study at any are then used to pay for health insurance length of stay at the hospital has decreased accredited college or university. premiums which cost between $500 by one day per employee per month. The payoff for the school is huge. and $1,000 month as long as the retiree Likewise, hospital admissions have de- People who use this benefit tend to stay at remains on the university's health insur- creased from 305 to 105; emergency room Duke for an average of seven more years ance program. visits dropped from 150 to 140. than those who don't, says Clint Davidson, Retirees who were with the university This is still a very young program, vice president of HR. for at least 15 years receive another bonus. says Davidson. All of the indicators are Employees who have worked there for The school matches their sick leave credit encouraging but the program hasn't been at least two years also receive $5,000 a year account with an additional six-and-a-half out there long enough yet for us to say in professional development funds. What's days each year, up through 24 years of ser- with scientific confidence that it's all be- unusual here is there's no cap. The only re- vice. For example, take an employee who cause of Prospective Health. striction is after spending $2,500, an em- has 30 years of service, saved 10 days of Any way you look at it, creative benefits ployee must commit to staying at least two sick leave each year and earns $40 per hour. act as an employee magnet. Considering more years or pay back half of the $2,500. If you do the math, that comes out to al- today's hot job market, they could make If those ideas don't appeal, consider most $100,000 in sick leave credit before the difference between hiring quality staff this one: Ask local businesses to discount the match is even applied. Chamberlain or just warm bodies. their products or services to employees by says it's not unusual for employees with 28 | November 2006 universitybusiness.com HR1106.indd HR1106.indd 28 10/23/06 11:11:50 AM http://www.universitybusiness.com

Table of Contents for the Digital Edition of University Business - November 2006

Table of Contents
College Index
Company Index
Advisory Board
Editor's Note
Stats Watch
People Watch
Sense of Place
Viewpoint
Marketing
Human Resources
Money Matters
Community Colleges
Wireless: The "n" is Near
TECH Central
Rising Stars
Coming Back from Katrina
Business Technology
What's New
Calendar of Events
Direct Connect
End Note

University Business - November 2006