June 2023: Voluntary Benefits Voice

June 2023

Voluntary Benefits Voice M A G A Z I N E

Why Should Brokers Care About DE&I(B)?

Revolutionizing the Voluntary Benefits Industry: Harnessing the Power of Large Language Models

Celebrating Diversity, Equity, and Inclusion

Editorial Board

Mark Rosenthal PwC

Seif Saghri BenefitHub

Jessica DePhillips Mercer

Michael Naumann Reliance Matrix

Jack Holder EBIS

Jennifer Daniel Aflac

Michael Stachowiak Colonial Life

Key Contributors

Steve Clabaugh CLU, ChFC

Editorial Staff Co-Editors Trevor Garbers Trevor@voluntary-advantage.com Heather Garbers Heather@voluntary-advantage.com For Media and Marketing Requests Contact: Heather@voluntary-advantage.com and Trevor@voluntary-advantage.com

FEATURED ARTICLES 01 Why Should Brokers Care About DE&I(B)?

Jessica DePhillips and Michael Naumann Address Why We Need to Include DE&I(B) in our Client Strategies

02 Legal Insurance

Supporting Diverse Communities and DEI Efforts

03

Celebrating Diverse Leaders in Voluntary Benefits

04

Use Corporate Giving Programs to Promote DEI in the Workplace

05 The Hidden Cost of Caregiving The Impact on Employees Caring for Aging Parents

06 Championship Team Behavior II Casebuilding & Blaming

Voluntary Sales 2023

The Future of Voluntary Benefits: Untapped Potential

Adapting to Changing Employee Priorities: The Rise of Voluntary Benefits

2023

THE FUTURE OF VOLUNTARY BENEFITS IS NOW

Diversity, Equity, and Inclusion Marginalized communities: groups of people who face social, economic, or political disadvantages due to factors such as race, ethnicity, gender, sexual orientation, disability, or economic status.

These communities can be subject to barriers daily when accessing resources, opportunities or even just fair treatment in society. It can be a similar experience to playing blackjack against someone counting the cards - the playing field is just not equal.

Diversity, Equity, and Inclusion is the theme of this month's publication and we could not be more proud of the content that was submitted on this topic. Two of our Editorial Board members, Jessica DePhillips and Michael Naumann, both requested the ability to submit an article on this topic the minute we released our calendar for the year, the teams at ARAG and Givinga both wanted to share how solutions we already have available in our marketplace can make a difference - and I personally, was honored that three of our friends, Sharla St. Rose, Seif Saghri, and Shefali Desai were open to sharing their experiences on such a personal topic.

I could not be more proud to be in an industry where there is so much excitement to share information and ideas about how we can do better to help improve the quality of life for marginalized communities through our position as trusted advisors. Our industry is changing and evolving, and embracing inclusivity when it comes to benefits is something we need to be very mindful of not only to engage an evolving workforce, but also to be good humans. The benefits we market can help even the playing field when it comes to accessing quality care, provide access to quality financial resources, and help all individuals regardless of income bracket prepare for the future.

What can we do to address this better as an industry?

Have open dialogue. Be open minded. Commit to being apart of the change.

By Heather Garbers

Voluntary Sales 2023 As a Key Contributor to the Voluntary Benefits Voice, Eastbridge Consulting will be sharing content from our research and experience that aims to represent the perspectives and “voices” of the many different stakeholders in the voluntary market.

This month we are sharing perspectives from our 2022 U.S. Voluntary/Worksite Sales Report

Eastbridge is the source for research, experience, and advice for companies competing in the voluntary space and for those wishing to enter. For over 25 years, they have built the industry’s leading data warehouse and industry-specific consulting practice. Today, 20 of the 25 largest voluntary/worksite carriers are both consulting and research clients of Eastbridge.

Nick Rockwell President

Danielle Lehman Senior Consultant

Why Should Brokers Care About DE&I(B)?

By Jessica DePhillips and Michael Naumann

Diversity, Equity, and Inclusive (Belonging) (DE&I(B)) continues to be a prevalent topic in our industry, as employers are increasingly prioritizing these initiatives.

We are both actively engaged in DE&I(B) initiatives within our organizations focused on workforce, workplace, and the marketplace, as well as participants on a Voluntary Benefits DEI Carrier Panel. As such, we wanted to collaborate and to share our thoughts with you on this important topic in our industry today, simply because employers are increasingly prioritizing these initiatives.

Employees are expecting more from their employers, starting with equal opportunities for employment, promotion and pay, and now including more customized benefits and other rewards. In a merciless job market, recruiting, keeping and motivating young team members isn’t just a good idea, it’s vital.

In order to do this, employers fall into one of two buckets: Actively examining every aspect of their benefits, pay and job/growth opportunities to ensure they are relevant and effective across every employee segment; or One incident away from doing so.

When a client in the second bucket approaches you with an urgent need to review, augment or update their plans, you need to have an answer. But what if the incident that prompts the change is a pitch from a competitor who’s been proactively thinking and talking about DE&I(B) as a strategy, not just a requirement?

That is one reason brokers should care. DE&I(B) is at the heart of so many organizations and their employees.

Celebrating differences and providing an environment that fosters acceptance, is a step in the right direction.

What is Said vs. What is Meant.

Traditionally there is wiggle room in the benefits world: insured products can be filed in such a way as to leave room for flexibility of plan design and/or administration.

Like the example above, yesterday you were okay advocating or providing a plan that did the right thing when push came to shove; today, the mere absence of clearly communicated intent presents a risk.

You cannot continue with the status quo — be prepared to move out of your comfort zone, make mistakes and engage in a continuous journey of learning. For example: Avoid acronyms and emphasize everyday language Add non-binary gender descriptors in addition to he/she, him/hers Remove gender pronouns; use gender neutral names for family members: Replace “husband” and “wife” with spouse Replace “son” and “daughter” with children Streamline definition of “dependent” Update mental/nervous limitations Update alcohol/drug (substance) limitations Update age limitations to enroll and continue coverage Update elective surgeries exclusion sections (e.g. gender reassignment surgery inclusion)

Know the Law(s)

Embrace the Cause

The Family and Medical Leave Act (FMLA) is 30 years old.

So is the language. The problem is, state variations, including Paid FML versions, have not just updated language, but updated eligibility compared to the OG. Keeping track is a pain, let alone keeping up with being compliant. There’s virtually no chance of a national omnibus plan coming along to standardize everything anytime soon (or ever), so that’s your chance. You can be a source of information but more important, an advocate for streamlined, cohesive policies. While FML continues to evolve, we're fortunate there is a lot of data and resources available to stay informed. Start by subscribing to Matrix-Radar.com, a decade-old resource for insights into leave laws and regulations.

Brokers are employers, too. That means there’s someone in your organization thinking about DEI right now. How can you leverage that person/program? They have a vocabulary all their own, probably different from yours, but immediately relatable to your clients. Maybe there are shared programs, or programs primed and ready for sharing with key clients. How about recognition? Sponsoring or nominating clients for their leadership in DEI is a big win, but it requires you to know what they are doing, where, and why.

Be a Hero HR Departments are challenged – not just at enrollment time, but all the time. They are challenged to do more with less, now more than ever. They are required to communicate a universe of important information, all the time, to all corners of the ever-changing, everevolving, multi-generational workforce.

And communicate equitably to everyone. In order to consistently do this well, employers need guidance and direction. To the extent you can help resolve this problem, you are a hero.

Think of all the opportunities: Materials in multiple languages and media sources Live “experts” available to answer questions during specific periods Employer-sponsored, direct communication campaigns like SMS/text: People can delete emails without thinking; text messages may gain more traction.

Vendor vs. Trusted Advisor We all want to be a trusted advisor. To do so, that means fully understanding, valuing and supporting your client’s world view.

Many employers are prioritizing training in diversity, equity and inclusion, cultural competence and empathy. This helps employees learn about different cultures and perspectives, which can create a more inclusive workplace. How can you lead by example? Do you have something to add or content to share? Could you co-sponsor a program, maybe a train-the-trainer opportunity exclusively for clients?

Be proactive and ready to support your client’s needs and it will pay dividends in the end. After all, it’s not just about a reactive approach to DE&I(B) but strategically thinking ahead to how you can assist.

All of these ideas are ways we can collectively further develop DE&I(B) initiatives and can create an environment of belonging for our clients and their employees.

Jessica DePhillips, Voluntary Benefits Practice Leader for the Central/East Markets, and CoChair, Mercer Voluntary Benefits Diversity, Equity & Inclusion Committee, Mercer. Jessica is responsible for developing solutions for employers in the mid-market and large/jumbo case employer segments, as well as serving as a regional Mercer Voluntary Benefits representative to align Marsh McLennan sister companies for cross-sell opportunities and other strategic solutions.

Michael Naumann, Worksite Practice Leader (Western US) for Reliance Matrix. Michael Naumann has over 23 years of diverse experience across employee benefits, enrollment solutions, affinity-based programs and third party administration. At Reliance Matrix, Michael creates sales and marketing strategies to accelerate worksite growth, drives business development, and influences product development.

Legal Insurance

By Heather & Trevor Garbers

Supporting Diverse Communities and DEI Efforts XXX

By Heather & Trevor Garbers

By Ann Cosimano, General Counsel, ARAG

Across the country, June marks Pride Month – a time for honoring and celebrating the LGBTQ+ community and promoting visibility and inclusion. It’s also a time to think about what we can do to create an equitable workplace: how can we keep an eye on DEI-related issues while still meeting our business goals?

While great progress has been made in supporting LGBTQ+ and other marginalized employees, there is still room for improvement. Whether it’s through creating employee resource groups, offering diverse benefits or educating employees on the importance of a diverse workforce, there are many steps employers can take. One of the best ways to support diverse communities is to offer benefits that cater to a wide variety of people. In fact, the Human Rights Council provides helpful guidelines on offering inclusive benefits.

When it comes to benefits, it’s important for brokers and HR professionals to look for potential gaps in their offerings, especially those related to health care, financial well-being and family-starting benefits.

Members of diverse communities often have unique needs. Luckily, legal insurance gives people a voice and is a benefit every employee can use, no matter their age, race, identity or background. Explore some of the coverages legal insurance offers that can help meet the DEI goals your clients and your organizations have.

Accessing health care While many employers offer health insurance that are transgender-inclusive, some LGBTQ+ community members may still not be comfortable seeking medical care. Consider offering comprehensive health benefits to your employees’ domestic partners. According to the Human Rights Counsel’s Healthcare Equality Index 2022, only 34% of employers do.

So, how can legal insurance help provide equality for all employees? As part of a legal plan, employees can create hospital visitation authorizations, which grants family and non-family members hospital visits.

Employees can also complete a HIPAA authorization form, which allows medical professionals to discuss protected medical information with designated people who normally would not have access to this information.

Planning for the future When an employee has legal insurance, a major benefit is that it removes some of the financial burden of attorney fees. This means individuals who might not normally have access to an attorney, whether it be for financial reasons, misconceptions of who can hire an attorney or a lack of knowledge about how to work with an attorney, can get access to vital estate planning documents.

According to a recent Consumer Reports study, 39% of white, non-Hispanic Americans have a will, compared to only 18% of Hispanic Americans, 23% of Black, nonHispanic Americans and 33% of English-Speaking Asian Americans. This is often because individuals don’t believe they have enough assets to warrant making a will. But when individuals have access to an attorney through legal insurance, these barriers are removed, and they can protect their assets and their future.

Funeral directives are another coverage that help support DEI-related efforts. A funeral directive provides direction on the arrangement of services and disposition of one’s remains. You should designate an agent to carry out your wishes – it might be an individual in a relationship with someone who isn’t recognized by their state. If you don’t designate an agent, the law will determine who has the legal authority to make your funeral arrangements: first a spouse, then adult children of the deceased, parents of the deceased, siblings and finally next of kin (such as a grandparent or aunt or uncle).

Family-related coverages More and more, employers are being asked to support employees with family-starting benefits and other offerings that affect how their family works. What many don’t realize is that there is a legal component to this.

For example, legal insurance can help support employees who want to expand their family by handling the legal side of adoption and egg, sperm or embryo donations.

Legal insurance can also help with parentage issues. By establishing parentage rights, non-traditional families ensure that the parents of the child can make important decisions for a child.

Finally, legal insurance can support employees through a name change process. Whether this name change is stemming from adopting a stepchild and wanting to change their last name to yours, getting married and

wanting to change your middle name to your maiden name or because you are transgender and no longer identify with your birth name, an attorney can help with the legal process.

How does this affect HR pros and benefit providers?

While providing extra protection to diverse individuals is great, how does this impact you? As an employer, offering benefits like legal insurance can have many positive effects. If an employee is facing a legal issue, chances are they’ll be less stressed and more focused on work when they have the assistance of an attorney at an affordable rate. In fact, new research from ARAG shows 39% of ARAG members were not stressed at all when it comes to truly understanding their options and what’s best for them, compared to only 14% of consumers using an attorney without a legal plan.

In addition to lowering employee stress levels, providing a legal plan and other benefits that support DEI efforts can secure your place as an employer of choice. In an increasingly tight labor market, offering and highlighting these benefits can make a significant difference when recruiting new talent.

As a broker or benefit provider, educating your clients on the advantages of a legal plan helps to establish yourself as a voluntary benefit expert. You bring the knowledge to your clients, and they will look to you to present them with benefits packages, including traditional and voluntary benefits, that help their employees and enable them to attract and retain employees.

Most importantly, by having a benefits structure that is inclusive of all workers, employees can show up as their whole self. You show that you value, accept, support and understand their unique needs, making them more likely to contribute all their gifts to your workplace. As organizations continue to level the playing field for marginalized communities, it’s not only good for the community, it’s good for your bottom line.

Ann Cosimano - As ARAG's General Counsel, Ann Cosimano directs the company's legal, regulatory, compliance, risk management and attorney relations departments. Having started her career as an attorney for nonprofit organizations, Ann brings a full understanding of – and deep respect for – members experiencing legal issues. Ann genuinely cares about improving the lives of others and aligns those values with her role as an executive leader. She has a bachelor's degree in psychology/sociology and prelaw from Peru State College in Peru, Nebraska, and a law degree from Creighton University School of Law in Omaha.

Celebrating Diverse Leaders in Voluntary Benefits

By Heather & Trevor Garbers We are highlighting strategies for integrating diversity, equity and inclusion via benefit offerings for our clients in this month’s publication – and we could not do this topic justice without also celebrating a few of the diverse leaders in our industry.

We are excited to share our interviews with Sharla St. Rose, DBA, Managing Director with Alterity Group, Seif Saghri, CEO and Founder of BenefitHub, and Shefali Desai, Head of MassMutual Worksite in this month's issue. They are all leaders in our industry driving innovation and here are their unique perspectives on our industry today.

What brought you into the Voluntary Benefits industry?

Shefali: I have been in the employee benefits industry my entire career. Right out of college, I entered a management training program that exposed me to the newly developing 401k plan industry, and I fell in love with the purpose and people. Fast forward to today, I remain extremely passionate about helping people be more financially secure. To me, it is all about education, access, and affordability so everyone can protect themselves and their families financially for future dreams and uncertainties.

Seif: My aim was to provide small businesses with access to the remarkable perks and voluntary benefits that have typically been exclusive to largescale employers. As a small business owner back in 1999, I became acutely aware of how larger employers were effectively utilizing their resources to provide group rates and discounts for their workforce. This advantage was predominantly due to their ability to source such benefits, coupled with a sufficiently large employee base to incentivize providers into offering these discounts.

Consequently, I set out on a mission to enlist hundreds of small businesses. In no time, with the amassed strength of over 20,000 employees under our banner, we found ourselves in a position of power to negotiate. Thus, we successfully managed to secure and distribute an array of impressive discounts to these businesses, thereby leveling the playing field in the voluntary and lifestyle benefits space.

Sharla: I always joke that I tripped into the VB industry. I was working for a boutique brokerage firm in NYC, after coming from a larger national brokerage/consulting firm. I was working with a large and complicated nursing home client that relied on face-to-face enrollment. The enrollment firm that had been working with this client was not in a position to manage the upcoming enrollment and I was asked to step in to manage it. I knew nothing about VB at that time. And it seems that no one else at the firm did either. I was able to plan the enrollment with the help of some saintly industry veterans who I had access to. Once the enrollment started, I insisted on visiting various locations so I could know what things actually looked like on the ground. I learned so much from those visits! Not only did I learn what worked and didn’t work about the enrollment plan we had implemented, but I also got an appreciation for how much employees liked and relied on the voluntary benefits being offered. I recall an employee crying and calling her husband when she was approved for a $10K whole life insurance policy, which she hadn’t been able to get anywhere else. I also learned how employees were often confused by complicated benefit terms and options.

It was those moments that made me continue working in VB and I vowed to make it as streamlined and accessible as possible so that those employees who wanted them could have access to them. So, what started out as a temporary project turned out to be a lifelong career and continues to impact my approach to insurance consulting. Voluntary benefits should be part of any comprehensive benefit program. There are multiple stakeholders in what we do, as we should always have the best interest of our clients and employees in mind.

Has your career been impacted by your ethnicity?

Seif: I've been fortunate to have never really felt that my ethnicity, or the fact that I was born in Iran, affected how people dealt with me. Perhaps having been an entrepreneur for 38 years meant that I never had to experience any untoward behavior or biases from superiors, colleagues, or prospective employers.

When dealing with clients, I believe that people will always look beyond the cover of the book to seek out the best solution for their company (who would purposefully choose the second-best option?).

Similarly, because the technology sector workforce has a high percentage of ethnic minorities (approximately 40% vs. 25% for general population), it would be difficult for a client to have the expectation of being able to avoid working with someone like me.

Sharla: This is always a tough question. The thing about impact is that you don’t always know when it’s happening. However, I can say that wherever I go, in whatever situation I am in, I come to it knowing that I am tasked with addressing the concerns of different stakeholders, whatever those concerns may be. I aim to make our conversations more about finding solutions to their problems than anything else. That typically results in the development of a trusting relationship, independent of their original concerns.

Shefali: It has impacted every day of my working life, and it remains a learning experience, nearly every day. As a woman and a South Asian in the financial services industry, I used to walk into meeting rooms and be the only woman there and the only person of color most of the time. I certainly felt seen, but not necessarily heard. That is why it is so refreshing today to walk into meeting rooms and see others like me.

To be sought out and valued for my unique lens and perspectives. To be trusted as a leader and a ‘change agent’ for the betterment of our company and our offerings. I am proud to work for a company that has invested in building culturally competent and inclusive leaders through education centered on allyship so that we all understand the impact of bias and systemic privilege while underscoring the pivotal role that we all play as allies.

How were you able to overcome obstacles in your way to become the leader you are today?

Sharla: For a long time, I didn’t always think that I had the ability to be my authentic self in the work environment. And I’m not talking about my hairstyles, clothing, or speech pattern. For me, being my authentic self means that I can work and lead in a way that is true to who I am. I am tough, empathetic, have exceedingly high expectations of myself, my team members, and my partners. I am not a “hard talker” and I like to solicit suggestions and advice from others on my team. At the same time, I am very decisive when needed, and I have a high degree of confidence in my ability to succeed with any given task. I also have a very corny sense of humor and like to use the smiley face emojis. Once I felt comfortable bringing all of me to my workplace, I believe that I became both a less frustrated and a more effective leader.

Shefali: Resilience. Every leader must overcome obstacles and setbacks. Some of them can be very hard and some may feel very personal. The important thing is to believe in yourself so that you can dust yourself off and get up again. What makes that possible is ensuring you have a good support system at work and outside of work.

As a woman and a South Asian in the financial services industry, I used to walk into meeting rooms and be the only woman there and the only person of color most of the time. I certainly felt seen, but not necessarily heard.

How does your own diversity impact your perspective of the Voluntary Benefits marketplace and how you run your business today?

Seif: My approach to diversity has had dual impacts. Firstly, within our own company, we have instituted an inclusive culture that values diverse perspectives, subsequently leading to diversity among our own team members. Evidence of its effectiveness is exemplified by the fact that women constitute 48% of our global team, a figure notably higher than the tech industry's average of 26%. Secondly, in the voluntary benefits marketplace, we perceive a core part of our job is to extend our services to all our clients' employees, irrespective of age, gender, race, ethnicity, personal aspirations, or economic background.

Our culture of diversity within BenefitHub has enhanced our understanding and capacity to cater to the varied needs of the diverse array of employees of our clients.

Shefali: Voluntary benefits providers serve people of many different cultures, upbringings and living arrangements, and they need to meet them on their own terms. They are people with different views on planning for their futures and caring for their loved ones. People with different needs and dreams. This is why we at MassMutual strive to reflect diversity in our workforce and to more deeply understand the communities we serve. That is why I embrace a learning mindset. Listening carefully. Watching thoughtfully. Taking into account the different voices of those around me. And asking a lot of questions to inform and validate what we offer and how we offer it. At times during my career, particularly early on, I did not feel ‘heard.’ Today, I am sought out for my perspectives. And I seek out perspectives from others to ensure they feel heard and represented, and to ensure that we have voices at the table that represent the customers we serve.

What is important to keep in mind as we strive to adapt benefit offerings and the employee experience to meet the needs of diverse populations of employees today?

Sharla: Employees are multidimensional. We don’t all fit into boxes or quadrants based on our gender, year we were born, race, or other demographic characteristics. For example, I first became a mom at 19, so by the time I had my first corporate job at 21, my concerns and needs were vastly different than my 21year-old peers. I was all about having comprehensive medical insurance, the 401k match, and saving for a home. That taught me to never assume what people want or need. It also taught me the importance of offering a robust benefit program which provides employees with well vetted benefit options that can fit their own unique needs. Taking time to assess the actual needs of our employee populations will continue to be important.

Employees are multidimensional. We don’t all fit into boxes or quadrants based on our gender, year we were born, race, or other demographic characteristics.

Shefali: Access to group voluntary benefits in the workplace can be a terrific ‘equalizer’ because it helps to reduce barriers to financial education and tools that people may not have access to otherwise.

It is important for voluntary benefit providers to embrace flexibility and simplicity in their approach for the entire customer experience, from awareness, education and enrollment to claims and customer support. People need to trust the company behind the products and who they are working with at every stage and feel confident that the solutions they choose either eases burdens or enables them to focus on what is truly important in their lives. At no time is this more pivotal than when someone needs to use their benefit. As an example, life insurance and supplemental health insurance benefits often come at a time of crisis and the benefit may be the person’s only financial safe haven. It is where we can really shine and make a difference in someone’s life.

Seif: The optimal strategy unquestionably involves viewing each person as a distinct individual, which necessitates providing a personalized experience to every employee. In today's digital era, this is feasibly accomplished through the implementation of two critical components. The first component requires a comprehensive range of offerings, ensuring that all possible preferences and requirements of the employees are catered to. The second component involves discerning everyone’s current/real time interests and presenting them solutions in a timely and relevant context, a task readily accomplished through the application of Artificial Intelligence. By harnessing the capabilities of AI, we can effectively personalize the experience for each employee, thereby delivering a service that not only meets, but also anticipates, their unique needs. In considering what might be included in the broad portfolio of benefits, we will need to: 1. Conduct thorough research and analysis to understand the diverse needs and preferences of employees (much of this research has been done and is published annually by the big consulting firms).

2. Offer a range of benefits options to accommodate different demographics and individual circumstances.

3. Provide clear and accessible communication about benefits to ensure everyone understands their options.

4. Create an inclusive and supportive culture where employees feel comfortable expressing their needs and concerns.

5. Regularly evaluate the effectiveness of benefits programs and make necessary adjustments based on feedback and changing needs.

What is important that we, as a business community, do to promote diversity, equity and inclusion within our industry?

Shefali: A company and a person’s commitment to diversity, equity and inclusion is not about ‘checking a box’ or putting words on your website. It is about intent and action. Companies can play a material role in eliminating systemic structures that exacerbate economic inequities. It is about moving way beyond the days of anyone feeling alone and like the only one in a room that is different. For us, this vision for a better world begins with creating a culture of inclusion and belonging, and hiring and developing talent that values diverse backgrounds, experiences, and perspectives. At our company, DEI is more than a commitment or an ancillary strategy, but a true part of our company’s business imperatives today and looking into the future. Our commitment to DEI is not new. It is a journey that we have been on for more than a decade, focused on education, action, and accountability. And our results show that this works.

Seif: We can foster an inclusive culture: Create a culture that values diversity and inclusion at all levels of the organization. Encourage open dialogue, respect different perspectives, and ensure that everyone feels included and valued. The exciting thing about going down this path is that it is also great for the bottom line!

Sharla: Start with the employees you have. Give them the same opportunity to advance as others, provide them with the training and support they need to advance and if you ever find yourself doubting their

leadership abilities, ask them about their leadership experiences in their day to day lives. I have known Black men and women who were effective leaders in their churches, communities, fraternities, and sororities, but who struggled to progress in their corporate careers due to not being seen as leaders, or simply not being seen. Then, of course, we need to recruit effectively. Insurance is not the most desired industry, mostly because of bad press and unfamiliarity with the various roles and opportunities that exist, so we need to be very intentional about attracting all newcomers. Regarding specific efforts to increase diversity, it’s my belief that when job seekers start seeing more and more people who look like them succeeding and thriving, they too will be more attracted to our industry.

Note from the Editor: We have the opportunity to make a difference in the lives of so many people in the U.S. today through the policies and plans that we recommend to our clients and implement ourselves as employers. Starting with ensuring that the benefits we offer are equitable and solve for various needs from: healthcare and financial wellness initiatives to help advance socioeconomic standards, to even expanding the list of covered conditions on Critical Illness plans to include conditions that disproportionately impact specific groups of people; we can use our unique position to drive awareness and change and there is no better time than the present.

Sharla St. Rose, DBA, Managing Director with Alterity Group - As Managing Director of Alterity, Sharla is responsible for developing and executing the company’s business strategies. In her role, Sharla focuses on delivering adaptive and innovative solutions while addressing the unique needs of each client. In addition to being client focused, Sharla has helped organizations move into new markets and drive expansive growth while developing tremendous business relationships and credibility along the way.

Seif Saghri, CEO & Founder, BenefitHub. BenefitHub is a lifestyle benefits company offering the world’s largest selection of employee and member discounts, voluntary benefits and rewards. There are currently over 10,000 clients in 15 countries that use BenefitHub to delight and engage their 20 million+ employees and members.

Shefali Desai, head of worksite with MassMutual, drives the success of the company’s worksite business that provides voluntary benefit and executive group life insurance solutions through employers to the mass market. She brings over 30 years’ experience in the financial services industry to this crucial business, including 22 years with MassMutual, where she functions as both a leader and an industry disruptor.

Adapting to Changing Employee Priorities: The Rise of Voluntary Benefits

By Dan Watt, Senior Vice President of

By Management, John Allen, President/CEO Product FINEOS EOI Service Company In the wake of the pandemic and the prevailing economic uncertainties, the landscape of employee priorities has undergone a significant transformation.

As a result, employers are being compelled to reevaluate their employee benefits offerings to cater to the evolving needs of their workforce. In this article, we delve into the shifting priorities and explore the emerging trend of voluntary benefits that employers are embracing to attract and retain talented individuals, all while managing their bottom-line costs.

The Rise of Voluntary Benefits To expand their flexible benefit offerings and enhance their appeal to potential employees, many employers have turned to voluntary benefits. These benefits, which employees can choose to participate in, have gained traction within the industry. The key advantage for employers is that they can provide a wider array of benefits without significantly increasing their bottom line costs. This flexibility allows them to attract and retain top talent, especially in a competitive job market.

Evolving Employee Concerns Meeting Employee Needs In today's world, employees are most concerned about their physical well-being, emotional well-being, and financial health. The pandemic has made health and wellness a top priority for many people, which is why employees are looking for comprehensive benefits that cover these areas. Employers have recognized this need and are reassessing their benefits packages to ensure they meet the evolving needs of their employees.

A recent study revealed that 63% of employees express a strong inclination to participate in voluntary benefits offered by their employers. These benefits include critical illness coverage, hospital indemnity, disability income, and accident insurance. By embracing these voluntary options, employees gain access to additional safeguards and financial protection, thereby enhancing their overall well-being and peace of mind.

Meeting Employee Needs A recent study revealed that 63% of employees express a strong inclination to participate in voluntary benefits offered by their employers. These benefits include critical illness coverage, hospital indemnity, disability income, and accident insurance. By embracing these voluntary options, employees gain access to additional safeguards and financial protection, thereby enhancing their overall well-being and peace of mind.

As the employee landscape continues to evolve, it is imperative for employers to adapt their benefits offerings to meet the changing needs and priorities of their workforce. Voluntary benefits have emerged as a valuable tool, enabling employers to expand their benefit packages and attract talented individuals while managing costs effectively.

63% of employees indicate they are likely to participate in voluntary benefits offered by their employers *SHRM’s Benefit Trends to Watch in 2023

With the marketplace for voluntary products evolving rapidly, employers must stay informed about trends and engage in strategic planning to create benefit plans that not only address their employees' concerns but also ensure a competitive edge in the ever-evolving job market.

John is President & Chief Distribution Officer for EOI and is also an owner of the firm. John executes and develops strategic marketing initiatives on a national level, specifically focusing on the enhancement of value-added services that EOI provides for its clients. Since joining EOI in 2009, John has played a key role in the area of strategic marketing, building an outstanding implementation team in the Chicago office and tripling sales in the Midwest region.

How Corporate Giving Programs Promote Diversity, Equity, and Inclusion in the Workplace

By Heidi Ortegren, VP of Sales Givinga In today’s business landscape, companies recognize the importance of fostering DEI (diversity, equity, and inclusion) as core values of their brand and their workplace. As benefits brokers and advisors to HR professionals, understanding the impact of corporate and employee giving on greater DEI programs can be transformative, as they can provide a unique opportunity for organizations to support their employees in giving back to their communities while promoting DEI. This article explores the role of corporate giving programs in driving DEI, empowering employees, and enhancing your clients’ brands and workplace cultures.

By incorporating DEI initiatives into these programs, organizations can demonstrate their commitment to creating a more just and equitable society.

Traditionally, corporate giving programs have been known to be inefficient, expensive, and fail to meet the transparency requirements of modern corporate values.

But with the rise of philanthropic technology, integrating corporate giving into companies’ business operations and empowering their employees and stakeholders to make a difference has become easier and more impactful for employers, employees, and admins.

DEI and Corporate Giving At the heart of every successful workplace lies a strong foundation of DEI values. These values should serve as the bedrock of every company culture, regardless of whether the company is creating a corporate giving program. DEI policies are essential in creating an inclusive environment where all employees, regardless of their age, race, gender, sexual orientation, religion, marital status, disability, or other factors, have equal representation and participation opportunities.

Corporate giving programs can play a significant role in advancing DEI by not only supporting causes that uplift these values, but also by enabling employees to support causes that matter to them. This creates an equal opportunity for all employees to contribute, regardless of their backgrounds, fostering statistically significant representation and allowing everyone to assist their communities equally.

Empowering Clients to Drive DEI through Corporate Giving Programs As a benefits broker, you play a vital role in empowering clients to drive DEI through corporate giving programs.

By sharing best practices, pitching philanthropic tools and technology to manage these programs, and highlighting the proactive benefits of flexible charitable giving accounts and matching programs, you can help clients create equal opportunities for all employees to contribute, irrespective of their backgrounds.

Guiding clients on best practices can involve encouraging them to align their corporate giving programs with their DEI values to support cause areas that promote diversity, equity, and inclusion. By selecting causes that resonate with DEI values, organizations can demonstrate their commitment to fostering a more inclusive society.

Flexible charitable giving accounts and matching programs are also powerful mechanisms for promoting DEI within corporate giving programs. These initiatives ensure that all employees have the opportunity to support their communities and causes. By providing flexible options, organizations promote equal participation and representation, enhancing the sense of inclusivity in the workplace. And giving technology, makes it easy for businesses to implement these programs and see the reporting and results in real-time.

Corporate giving technology can serve as a powerful tool for benefits brokers and HR professionals to empower clients and guide them in developing strategies that promote DEI within their workplaces and communities.

Measuring the impact of corporate giving programs is crucial to demonstrate their tangible effects. By sharing reports internally and externally, organizations showcase their commitment to DEI and inspire others to join their cause. Continuous proactive giving strategies throughout the year reinforce the organization's values and engage employees in a sustained effort toward supporting DEI.

71% of employees indicate that it’s very important to work at a company that partakes in philanthropy, such as by matching employee donations

Measuring Tangible Impact and Fostering Inclusion

The Positive Impact of Corporate Giving Programs

Corporate giving programs extend beyond reactive giving. They serve as catalysts for creating a community of connection within the workplace. When employees see their organization supporting causes that are important to them as individuals, it fosters a sense of inclusion and connection within the workforce. The shared commitment to promoting diversity, equity, and inclusion through corporate giving programs brings employees together and reinforces the organization's values.

Corporate giving programs are powerful tools for promoting workplace diversity, equity, and inclusion. As benefits brokers and HR professionals, it is crucial to embrace these programs and guide clients in implementing strategies that align with DEI values.

To learn more about how we partner with HR professionals and benefits brokers to create and administer premier giving experiences, schedule a demo today or reach out to our VP of Sales, Heidi Ortegren, at hortegren@givinga.com.

By Dan Watt, Senior Vice President of Product Management, FINEOS

The Future of Voluntary Benefits: Untapped Potential Wellness benefits. Retail discounts. Concierge services.

If there’s a demand, there’s a way to create a voluntary benefits product. The explosion of innovative voluntary benefits in North America reflects what employees (primarily millennial/Gen Z) are requesting to help them manage their work-life balance.

In a tight labor market beset by inflation and volatile stock prices, employers find that adding voluntary benefits to their lineup is a smart strategic move.

Indeed, insurance executives told LIMRA they believed that “the group benefits segment, including voluntary offerings, is poised for further growth” in 2023 and that the industry should develop fresh strategies to sell more products.

How Voluntary Benefits Are Presented Is Critical To Enrollment Offering competitive voluntary benefits is an important way for employers to attract and retain talent, but the benefits themselves must be presented in a manner that’s both easy to understand and digitally access.

Consider these findings: The Hartford’s 2023 Future of Benefits Study found that “35% of U.S. workers do not understand the supplemental benefits that are offered and what they cover and 49% of employers agree employees lack understanding about these benefits.” Perhaps more simplicity is needed because texting has conditioned us all to use short phrases and abbreviations. Rewriting benefits in plain language, will become a trend.

In a recent LIMRA survey, 86% of insurers viewed digital enrollment methods and using the same enrollment platform for all benefit options as “extremely/very influential” on generating positive enrollment results (14% of insurers found them to be “somewhat influential”). “Digital enrollment options have become table stakes,” LIMRA noted, and workers who have to use multiple systems instead of one platform are less inclined to explore all of their options. In other words, employees don’t have the time, or won’t take the time, to jump from system to system.

Make It Simple, Make It Easy Similar to meeting employees where their digital experience resides, so we should meet them where their needs are and when it counts. Frankly, the age of referring to voluntary benefits as “forget-insurance” is over. The large deductible gap for major medical and the increased value in products such as accidental injury, critical illness, and hospital indemnity have taken voluntary from rainy day to almost-everyday. However, there is still a gap in utilization. The best method currently being leveraged is integration of insurance plans to leverage claim data and determine whether a voluntary policy is applicable. Done effectively, this is a game changer; however, the key is timing, correspondence, and simplicity in the claim submission and adjudication process.

Technology-Enabled Value To differentiate, insurers will need to really understand and focus on what customers value, not what they think customers value. This means knowing exactly where the painpoints and bottlenecks exist. It also means leveraging the information they already know about customers to guide decisions. For example, if an employee has purchased accident insurance, but not hospital indemnity, was that an oversight? Fortunately, there are AI-enabled, experience-monitoring technologies that can help. Doing things faster, smarter, and cheaper means having the right solutions to drive out unnecessary costs and provide the foundation for flexibility and change.

According to IDC, remote work is the No. 1 anticipated permanent workplace and technology change emerging from the pandemic. We agree with this assessment. Organizations will need to invest heavily in delivering integrated, easy-to-use self-service for all core functions, especially those that interact with critical customer touchpoints such as enrollment and claims. It is imperative for organizations to have one digitized source of truth around the current plan, the policies, the member-level enrollments, coverages, and class-level views. Without this, it will be almost impossible to remotely deliver the level of personalized service that customers expect. Although it may be tempting, we recommend against building on solutions designed for other products and purposes, as these add-ons will most certainly result in difficult hurdles to overcome when the benefit landscape changes again.

Providing Options To Gig Workers

Even as the economy has slowed, the workforce is still tight and talent is hard to find. The remote working model is another factor. Both factors increase the odds of a gig workforce remaining for the long term. This will force many traditional employee benefit carriers to consider both the impact to participation, penetration, and plan design concepts to provide a means for offering group benefits to individual gig workers.

While the gig contractor may not be able to benefit from the traditional group benefits (i.e., group pricing), there are ways to provide a robust option that creates opportunities for the gig worker to access benefits for financial wellness and family medical coverage. Similar to sponsoring group voluntary products, many employers are leveraging their size and buying power to provide their gig employees access to benefits and other supplemental products that would otherwise be price prohibitive or non-accessible.

Voluntary Benefits Fuel Opportunities The future of voluntary benefits is filled with endless opportunities to enrich the lives of others in an effective and value-added manner, as long as organizations are willing to continue to invest in technology to drive innovation and challenge norms within their business models. As employers create new ways to address labor shortages and employee needs, new waves of products and services will emerge, and solution providers will play a critical role in making these necessary pivots possible. Most organizations have proven they can respond quickly during a crisis.

The real question is whether they will continue to innovate and leverage modern technology to move forward or retrench with standard approach.

The gig workforce has increased beyond concept to reality. Due to shortage in the labor market, many employers leveraged the broad and flexible gig workforce to address talent gaps and execute on key initiatives or projects.

Dan Watt is Senior Vice President of Product Management at FINEOS, the leading provider of core systems for life, accident and health insurers globally. Watt specializes in helping employee benefits carriers find ways to leverage modern technology to streamline their processes, mitigate risk, and improve their bottom lines. His wealth of knowledge of the LA&H market makes him a go-to source for insight on current industry trends and future market expectations.

Revolutionizing the Voluntary Benefits Industry: Harnessing the Power of Large Language Models

By Carl Grafmuller, FSA, MAAA, CERA Sydney Consulting Group

How ChatGPT and AI can transform the way we approach insurance The voluntary benefits industry has transformed into a mainstream insurance market in the years following introduction of the Affordable Care Act. More recently, there has been a surge of interest in integrating artificial intelligence (AI) and machine learning technologies to innovate and optimize this space. One such development is the emergence of Large Language Models (LLMs) like ChatGPT, which have the potential to revolutionize the industry. Insurance carriers, producers, and service providers that embrace these technologies will transform the voluntary benefits landscape and help businesses adapt to the everevolving demands of the digital age.

Applications of LLMs in the Voluntary Benefits Industry: 1. Enhancing the Customer Experience: Customer service plays a pivotal role in the insurance industry.

By integrating LLMs into customer support systems, companies1 can provide quick, accurate, and personalized responses to client queries. Chatbots powered by LLMs can handle routine inquiries, policy explanations, and even assist in the claims process, freeing up human resources to focus on more complex tasks. This not only reduces response times but also improves overall customer satisfaction1 .

2. Streamlining Underwriting and Risk Assessment: LLMs can be utilized to analyze large datasets of historical claims, identifying patterns and trends2 that The Rise of LLMs: Large Language Models, such as can inform underwriting decisions and risk OpenAI's ChatGPT, are AI-driven models that excel in assessment. By incorporating these insights, insurers understanding and generating human-like text based can offer more accurate and competitive pricing for on the context provided. By analyzing vast amounts of voluntary benefits policies. Additionally, LLMs can textual data, these models can generate meaningful, help identify potential fraud by flagging contextually relevant content and predictions, which inconsistencies or anomalies in claims data, allowing makes them an invaluable tool for various industries, companies to take proactive measures and reduce including insurance. losses. Conversely, LLMs might identify profitable partnerships and suggest incentives to grow profitable business.

3. Personalizing Marketing and Product Development: Voluntary benefits providers can leverage LLMs to create targeted marketing campaigns, tailoring content and messaging to specific customer segments. By analyzing consumer preferences, LLMs can help companies identify potential gaps in their offerings and develop new, customized insurance products. This personalization can lead to increased customer engagement, higher conversion rates, and 1 Rossmann, A., Zimmermann, A., Hertweck, D. (2020). The Impact of Chatbots on Customer Service Performance. In: Spohrer, J., Leitner, C. (eds) Advances in the Human ultimately, greater profitability.

Side of Service Engineering. AHFE 2020. Advances in Intelligent Systems and Computing, vol 1208. Springer, Cham. htps://doi.org/10.1007/978-3-030-51057-2_33

4. Facilitating Regulatory Compliance: The insurance industry is subject to strict regulations, and staying compliant is critical. LLMs can be programmed to understand and interpret complex regulatory language, allowing them to monitor compliance in real-time. This can help insurers avoid costly fines and penalties while ensuring that their practices adhere to industry standards. As an example, the ability to run marketing material through an LLM will result in reduced delivery times, better scalability, and broader customization.

5. Enhancing Employee Training and Development: LLMs can be employed in the training and development of insurance professionals, providing them with up-todate information and resources. By simulating real-life scenarios, LLMs can assist in building employees' problem-solving skills and knowledge of insurance products and processes. This will not only improve the quality of service provided to customers but also empower employees to adapt to the ever-changing landscape of the insurance industry.

As we look towards the near future of LLMs, we can expect significant advancements in their capabilities, driven by ongoing research and development. With the growth of computational power and the refinement of machine learning algorithms, LLMs will likely become more sophisticated in their understanding of context, nuance, and complex reasoning. This will enable them to better assess and predict risk factors, leading to even more precise underwriting and pricing in the insurance industry. Additionally, the integration of LLMs with other AI technologies, such as computer vision and voice recognition, will further enhance the scope of their applications in the insurance sector. For example, this could facilitate seamless claims processing through image and voice data analysis, providing a more accurate and efficient system for evaluating costs and determining policy payouts. As LLMs evolve, the insurance industry must be prepared to adapt and harness these cutting-edge technologies to maintain a competitive edge, while ensuring that ethical considerations and data privacy concerns are addressed responsibly. In the ever-changing landscape of AI, staying ahead of the curve will be essential for companies seeking to capitalize on the immense potential of LLMs and redefine the future of the voluntary benefits industry.

Pitfalls...

While the integration of LLMs holds immense potential for the insurance industry, it is crucial to address the data privacy concerns associated with their usage.

LLMs rely on vast amounts of data to train and generate responses, which raises questions about the security and confidentiality of sensitive customer information. For example, any data that is sent to OpenAI’s ChatGPT, whether via their browser-based interface or via API, is now available as training data for future iterations of ChatGPT and sensitive customer information may be generated in future responses.

Insurers must prioritize robust data protection measures to safeguard personally identifiable information and ensure compliance with privacy regulations. Additionally, transparency in data usage and consent becomes paramount. Customers need to have a clear understanding of how their data is collected, stored, and utilized by LLMs. Implementing stringent access controls and encryption techniques can mitigate the risk of unauthorized data breaches.

Moreover, ongoing monitoring and audits of LLM systems can help identify and rectify potential vulnerabilities. By proactively addressing these privacy concerns, insurers can build trust with their customers, ensuring the responsible and ethical implementation of LLMs while reaping the benefits of advanced AI technologies in the voluntary benefits industry.

Conclusion...

The rise of Large Language Models like ChatGPT holds immense potential for the voluntary benefits industry.

By leveraging these advanced AI technologies, insurers can enhance customer experiences, streamline underwriting and risk assessment, personalize marketing and product development, facilitate regulatory compliance, and improve employee training and development. As we continue to explore the untapped potential of LLMs, it is crucial for industry leaders to remain at the forefront of innovation and be open to embracing the transformative power of AI. I am confident that the integration of LLMs will not only benefit businesses but also revolutionize the way we approach insurance in the digital age.

Carl Grafmuller, FSA, MAAA, CERA , Actuary, Sydney Consulting Group - is based out of Amsterdam, The Netherlands. He joined the firm in 2020 after serving in actuarial and non-actuarial roles related to life insurance, machine learning, and artificial intelligence. Carl’s unique experience will support Sydney’s innovative approach to product development, valuation, administration, etc., functions within brokers, insurance carriers, and technology firms. Carl holds a double major with a Bachelor of Science in Actuarial Science and a Bachelor of Science in Finance, Leonard N. Stern School of Business, New York University.

The Hidden Cost of Caregiving: The Impact on Employees Caring for Aging Parents

By Gretchen Barry, Director of Marketing Strategy, BuddyIns This is the first in a series of articles that will address the caregiver crisis as it relates to employees who are providing care to an aging parent or other adult.

Caregiving is a challenging role that millions of Americans take on every year and caring for an aging parent or other adult is increasing. According to a report from the National Alliance on Caregiving, there are about 53 million family caregivers in the U.S. providing an estimated 34 billion hours of care to adults who have limitations in daily activities. Many of these caregivers are also employed and in their prime earning years, juggling their work responsibilities, home, and childcare along with their caregiving duties. According to a Harvard Business School report published in 2019, pre-pandemic, “A third of employees who left a position reported taking care of an elder with daily living needs as a reason for leaving their job.

Almost 25% did so to care for an ill or disabled spouse, partner, or family member.” That number is likely to increase, and it will impact women as primary caregivers the most.

The Workplace Reality of Adult Caregiving To illustrate the benefits of these strategies, let us consider the case of Danielle, a project manager at a mid-sized construction company. Danielle's 72-year-old mother was diagnosed with Parkinson's disease two years ago and needed a caregiver. The cost to bring in a full-time caregiver was not sustainable on her mother’s limited income, and there was no long-term care insurance in place. Since Danielle lived near her mother, she made the decision to take on the role as her mother’s primary caregiver.

At first, Danielle was able to manage her work and caregiving responsibilities without much difficulty. She would visit her mother every morning before going to work and every evening after leaving work. She would also check on her mother during her lunch break and call her several times during the day. She hired a home health aide to assist her mother with bathing, dressing, and medication management.

The Breaking Point

“A third of employees who left a position reported taking care of an elder with daily living needs as a reason for leaving their job.”

As her mother's condition worsened, Danielle found it harder to keep up with her work and caregiving demands. Even though they were able to hire a home health aide, Danielle still had to manage her mother’s care, accompany her mother to frequent doctor's appointments, physical therapy sessions, and support groups.

She also had to deal with her mother's mood swings, anxiety, and depression. She felt exhausted, stressed, and guilty all the time. She started to miss deadlines, make mistakes, and lose focus at work. She also became more irritable and withdrawn from her colleagues and friends.

Compassionate Options Danielle's supervisor noticed the decline in her performance and approached her about it. She asked Danielle if she was facing any personal or professional issues that were affecting her work. Danielle opened up about her situation. After listening to Danielle describe the daily challenges, the supervisor first referred Danielle to the employee assistance program for counseling and support services for employees who were dealing with personal or family problems. Then, after consulting with human resources regarding flexible work schedules, Danielle was offered the opportunity to work from home two days a week and adjust her hours according to her needs. Another team member agreed to share some of Danielle’s responsibilities in exchange for offloading a few other projects that were not time sensitive.

According to our Community Partner, TCare, addressing caregiver burnout in the workplace can have an enormous positive impact. 84% of caregivers who were offered some type of engagement in their daily caregiving responsibilities reported an improvement in their overall health. Additional outcomes include: Reduced absenteeism and use of FMLA leave Increased presenteeism and productivity Lower health care costs and reduced prevalence of chronic illnesses An atmosphere that fosters a sense of caring and compassion Increased employee satisfaction

Although each solution came with a cost, the overall return was far better than what would have happened if Danielle had decided that she had no other option but to leave her job.

Nearly 2 in 10 employed caregivers had to stop working, while 4 in 10 had to reduce their working hours to care for a loved one.

Rosalynn Carter Institute for Caregivers. Working While Caring: A National Survey of Caregiving Stress in the U.S Workforce.

Solutions in the Workplace One of the ways that employers can support their employees who are caring for aging parents is by recognizing the impact of caregiving by offering flexible and compassionate solutions. For example, employers can provide flexible work arrangements, such as telecommuting, part-time work, or job sharing, that allow employees to balance their work and caregiving schedules. Employee assistance programs, wellness programs, or referrals to community resources can help employees cope with the challenges of caregiving.

Danielle's story shows how a caregiving event can snowball to impact the employee, their team, managers, customers, and ultimately the bottom line. Depending on the need, caregiving responsibilities can last years. As we continue to see more employees taking on these roles while there is also a labor shortage, it benefits employers to have a strategy to help employees and their teams deal with caregiving responsibilities. Doing so can improve the productivity and performance of employees and enhance loyalty, retention, and engagement. And that will help to protect the bottom line.

Championship Team Behavior: Part II Casebuilding & Blaming Ben (not his real name) was, for the most part, a good Regional Vice President. He was good at recruiting, training and supporting the agencies and agents in his region. He knew the product line and understood the primary markets for our products very well. But when it came to working together with his peers and home office leaders, he couldn’t be counted on to provide meaningful information and input from the field influencing important decisions that impacted the company’s plans and growth. Over time Ben developed the reputation for providing only those facts supporting the decision he wanted to see. In the long run it greatly limited his opportunities for advancement.

We call this “Case Building.” It’s the same approach an attorney takes in representing a client in a legal matter.

Now, case building in a matter before a court of law can be a good thing. No attorney wants to give her opponent information detrimental to her own case. But in the business world, case building can be detrimental and costly.

This brings us to the 2nd of 6 principals of Championship Team Behavior. You may recall the first principle from last month’s article - “We work together as colleagues.”

Principal #2: We do not accept Case Building when planning and executing our business plans.

This principle emphasizes the importance of getting at and understanding all facets of a situation, opportunity or challenge before making a fully informed decision.

By Steve Clabaugh, CLU, ChFC Over the years, a number of associates have questioned the validity of this principle on the grounds that you want to encourage team members to be passionate and committed to their position. Passion and commitment are vital but not without a full understanding of all the facts. Here’s a story that illustrates the importance of this principle.

Several years ago, a consumer electronics firm had a business goal to increase their sales among members of the Latino community. After much discussion and thought they decided to choose one major city to implement the new program before rolling it out to the rest of the country. They chose the City of Miami, Florida because of its large and influential Latino population. They invested several million dollars in billboard, newspaper, magazine, radio and television advertising targeted to raising awareness and driving sales during the limited time promotion.

Unfortunately, the campaign failed miserably, embarrassing the team and, indeed, the entire company.

Why? Because the campaign was centered around a celebration of Cinco de Mayo. Cinco de Mayo is the annual celebration of an 1862 military victory by outmanned Mexican troops facing a superior French army in the battle of Puebla. Since the Latino community in Miami is predominantly Cuban, they don’t generally recognize or celebrate Cinco de Mayo.

In all their hard work planning and implementing the new program they had failed to get all the facts prior to making some critically important decisions. I like to refer to this as “short thinking,” it happens more often than you might imagine and can be very expensive.

In retrospect, you and I can probably think of a dozen or more ways they could have implemented the program in a more effective location or manner. This, then, is why championship teams don’t accept case building and, instead, work hard to try and understand all the facts before making important decisions.

Principle #3: We don’t tolerate Blaming.

This principle is based on the idea that determining and finding fault with one individual or group of individuals is counter-productive and, in fact, damaging to the effectiveness of the team as it works to accomplish its goals.

Here’s an example of why blaming is a bad idea.

Baseball is a sport where a mistake by any of the players is painfully obvious. Everyone watching the game can see who dropped a fly ball, missed a throw, struck out or any of the other dozens of things that can go wrong. My son is a high school baseball coach. Over the years I’ve watched him push his players hard to make plays correctly during practices but have seldom seen him get on a player during a game. In a game this past Spring I watched as a rival coach exploded in anger at one of his players after making an error that gave up a run. This public recognition of blame didn’t help the player improve and, instead, resulted in the entire team falling apart, which enabled my son’s team to win by a comfortable margin.

Since our current culture is so heavily focused on determining who to blame for almost everything, leaders have a responsibility to protect their team when something goes wrong. It’s not always easy to do.

I was facing just my third board meeting as CEO and one of our senior officers had made a decision that turned out to be wrong - and correcting it was expensive. Our practice was to provide the board members with an advanced copy of the board report a week before the meeting. The Chairman and I would then meet the day before to discuss in detail the report and our expectations for the meeting. On this occasion, I shared with him the facts of what had occurred, the costs for mitigating the situation and the steps we had taken to ensure it didn’t happen again. I explained this principle of Championship Team Behavior and asked that, if he felt it was necessary to place the blame on anyone (or throw them under the bus), that anyone should be me as CEO. Unlike me, he believed that finding out who was responsible and blaming them was a better way to get to the bottom of problems and correct them for the future. At the same time, he didn’t want to undercut his new CEO so early in his tenure. He graciously deferred to my request, and we proceeded to have a productive board meeting.

Of course, if the situation involves malfeasance or criminal actions by a team member, it needs to be addressed promptly and firmly.

This principle begs the question of how to effectively address mistakes and correct them for the future. Stay tuned for next month’s article. In the meantime, feel free to contact me if you’d like to discuss specifically how the principles of Championship Team Behavior can apply to your team.

Steve Clabaugh, CLU, ChFC started his career in insurance as a Field Agent, moving on to Sales Manager, General Manager, Regional Manager, Vice President, Senior Vice President, and President/CEO. A long time student of professional leadership, Steve created the Relational Leadership program that has been used to train home office, field sales associates, mid-level managers, and senior vice presidents.

If you are interested in working with Steve on an individual or organizational basis, contact him at sjcsr@hotmail.com.

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