Hartford Business Journal

www.HartfordBusiness.com • June 18, 2018 • Hartford Business Journal 29 EDITOR'S TAKE Commission's calls for tax, budget reforms not going away F or those who thought the CEO-led Commission on Fiscal Stability and Economic Growth ceased operations following the release of its recommendations in March, think again. Its members, particularly co-chairs Bob Patricelli and Jim Smith, are still working behind the scenes to ensure their plan for tax, budget and economic policy reforms doesn't get mothballed. That was the message Patricelli, Smith and commission member Cindi Bigelow shared with the 200 or so people gathered at HBJ's June 12 C-suite Awards. I invited them as the event's keynote speakers and they didn't shy away from pointing out the steep challenges Connecticut faces and the need for the business community to play a leading role in confronting them. Patricelli and Smith said they are on the speaker circuit trying to get in front of business groups and anyone else who's interested in hearing about their proposed solutions for the state's fiscal and economic woes. They are also try- ing to get in front of gubernatorial candidates to try to shape the debate of this year's important election. No one should be surprised that Smith, the former Webster Bank CEO and current board chairman, and Patricelli, founder and former CEO of Women's Health USA, are still putting significant time and energy behind the work of the commission, which was created last year by the state legislature to propose a comprehensive plan to make Connecticut more economically competitive. Both men, Bigelow, the CEO of specialty tea giant Bigelow Tea in Fairfield, and the other commission members, including The Hartford's CEO and Chairman Chris Swift and Stanley Black & Decker President and CEO Jim Loree, put their reputa- tions on the line by joining the commission and aren't interested in going away until their clarion calls for reform are heard and, perhaps, implemented. (They've also established a nonprofit — CT Rising — to continue to fund and support their work.) Their blueprint didn't hold back any punches. It called for a state tax overhaul, spending cuts, changes to state employee collective bargaining, a minimum wage increase, increased transportation investment (paid for by a higher gas tax and electronic tolls adoption), among many other recommendations. For those keeping score, lawmakers ignored most of their prescribed remedies, which isn't surprising given the poor track record legislature-appointed commis- sions have had turning their work into actual public policy. Their plan also upset many interest groups at the state Capitol. Organized labor called it "anti union," businesses complained about a new payroll tax for large employers, and many legislators still can't wrap their heads around the extent of Connecticut's problems, never mind solutions to them. Was the plan perfect? Of course not, but there are no simple answers to the many issues — exploding unfunded liabilities, shrinking population, stagnant economy — that plague Connecticut. What the commission's recommendations did offer was a vision for the future, a comprehensive plan for how Connecticut can slowly grow it's way out of its problems. And "grow" is the keyword. Without economic growth the state's bud- get woes will continue. Growth will lead to higher tax collections without raising rates and help us pay off our exploding long-term unfunded liabilities. Connecticut has lacked a vision for decades now, which is why lawmakers would be wise to use the commission's work as a blueprint for the future. The plan still needs a full vetting to gauge it's true economic impact, but without drastic pro-growth policy changes Connecticut's economy will be stuck in neutral or, even worse, reverse. It's also incumbent upon the business community to demand change. That was what Patricelli, Smith and Bigelow reiterated in Hartford last week and their message isn't going away anytime soon. EXPERTS CORNER Employee benefits trends to help attract, retain talent By Joe Gianni and Eric Bauer A ttracting and retaining top talent is more challenging than ever. U.S. unemployment is at a 10-year low and aging Baby Boomers are reaching retirement age and exiting the workforce. In fact, the percent- age of working-age Americans in the labor force has dropped to 62.9 percent, near a 40-year low. One way busi- nesses can at- tract employees is to understand their needs and provide a port- folio of benefits that are customized to the employee's stage of life. Here are four tips for using employee benefits to help build and sustain a strong workforce. Appeal to Millennials First review your strategies for tar- geting different age groups. Accord- ing to a recent survey by Glassdoor, employees ages 18 to 44 prefer ben- efits or perks to pay raises, compared to those ages 45 to 64. Employers want to hire Millennials, who are poised to climb the career ladder and fill the ranks of exiting Baby Boomers. Contrary to popular myth, Millennials crave job security as much as any generation prior to them. Qualtrics' "Millennial Study" re- ported that 77 percent of Millennials would be willing to take a salary cut in exchange for long-term job security. In addition, 64 percent of Millenni- als say benefits are extremely or very important to employer loyalty. Help employees understand and adjust to new healthcare options Some companies are adopting consumer-driven or high-deductible healthcare plans, with many pairing these with Health Savings Accounts (HSAs) or Health Reimbursement Ar- rangements (HRAs) to keep employee costs low. As employees adopt these solutions, they'll need the right tools to understand and use their health plans. Interest in HSAs has picked up among Millennials, but only 50 percent are confident they have a strong under- standing of their benefits. Consider new ways to increase their knowledge. Track changing legislation In addition to updating internal benefit policies, it's important to track changing healthcare and retirement plan legislation, as it may have far- reaching implications for how employ- ee benefits are administered. The Kaiser Family Foundation reported that 96 percent of firms with 50 or more full- time employees offered at least one plan that would meet the Affordable Care Act's minimum value and afford- ability require- ments. This year, Congress passed a two-year delay of the 40 percent excise tax (or "Cadillac Tax") imposed by the Affordable Care Act on high-cost, employer-sponsored health plans. This change underscores the need to be aware of legislative activity. Promote financial wellness tools A strong financial wellness pro- gram can empower employees and build loyalty to the firm. Take time to educate employees about the poten- tial impact of major life events and how to prepare for and estimate the financial impact of future events. The Bank of America Merrill Lynch 2017 Workplace Benefits Report found that the No. 1 issue for employees is saving for retirement. Only one-third of employees are engaged with 401(k) plans — contributing 11 percent or more of their salary to their plan. To encourage better financial habits, 85 percent of employers plan to utilize a financial wellness program. Compa- nies are expanding their educational resources to help inform employee- retirement and healthcare decisions. These efforts include online financial/ investment advice, group/classroom education and one-on-one support. Companies invest an enormous amount of resources in employee benefits, but without proper educa- tion and understanding workers may not receive the full value of these benefits. Offering robust plans and ensuring employees have the tools they need to make informed deci- sions can help you build a strong, sustainable workforce. Joe Gianni is Bank of America's Connecticut market president. Eric Bauer is B of A's SVP and business banking market executive in Connecticut and western Mass. Opinion & Commentary Greg Bordonaro Editor Joe Gianni Eric Bauer

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