Edited by Thorpe Benefits from original article in Canadian HR Reporter, September 2004

GENERATION X

Generation X is the "baby bust" group because so few children were born between 1967 and 1979. Gen Xers are mistrustful of corporations and are not loyal to any one company. If their job isn't taking them where they want to go, they'll move on. On the plus side, they embrace change, particularly with respect to technology; they are the stars of both the volatile dot-com companies and the more stable Silicon Valley start-ups. Generation Xers like to live on the edge and are outcome-focused, expecting specific constructive feedback on their performance.

GENERATION Y

Those born between 1980 and 1995 are part of a mini boom ("echo generation"). Generation Y is more affluent, more technologically-savvy, better educated and more ethnically diverse than any previous generation. Younger workers will tend to seek employers who will further their development as professionals. They're thirsty for skills and intellectual challenges, have a need to succeed and will measure their own success, in part, by what they've learned and how they've developed.

Generation Y will want to make a difference. The top three job requirements for Gen Y are:
 1.  Meaningful work that makes a difference to the world.
 2.  Working with committed co-workers who share their values.
 3.  Meeting their personal goals.

Values of Generation Y mirror earlier generations. Both possess a high level of sociability, morality and civic duty. Making a huge salary is not as important as what they actually do with their lives. Their contribution to society, their devotion to parenting and their determination to enjoy a full and satisfying personal life are more important considerations. Generation Y will wield a great deal of power, in part due to its sheer numbers. Organizations must still be careful to retain and motivate their older employees. Despite the approximately 5.6 million "Echoes" about to flood Canada's job market, there are still not enough of them to fill the void left by those boomers and "Veterans" leaving the workforce.

Unfortunately, one size does not fit all, and that includes benefits packages. Veterans and baby boomers are interested in retirement options, salaries and bonuses, stock options, investments and medical coverage.

Generation X and Y are more interested in child and elder care, as well as career development volunteer opportunities and any chance to learn new technologies.

Younger workers tend to not want to make the same mistakes as their parents, i.e. working long hours, neglecting family, friends, and personal pursuits. Money may be important to them, but so is living a work-life balance.

Not only will working Gen Y women expect their partners to be equally active parents, but those partners will want a more active role. Like the "Veterans," family will come first, unlike boomers and Gen Xers who often put career first.

In order to please employees of all ages, organizations and service providers should offer a cafeteria-style benefits package that allows for flexibility as well as a say in how individual contributions are spent. For example, a young single person might not be interested in family benefits, but may want a say regarding where his or her share of money spend on family benefits should be reinvested.

The technology-savvy young have always been able to access information immediately and directly at any time of the day or night. They'll expect the same from their benefits, wanting 24-hour online access, a convenience benefit providers everywhere have either already initiated or are working to establish. The role of the internet in managing benefits programs will become a requirement, not an option.

Companies would be wise to initiate programs geared toward improving the general health of Generation Y if the rising rates of diabetes and other diseases related to obesity and sedentary lifestyle are to be slowed. If organizations ignore these health issues, they'll feel the financial pinch in years to come when benefits costs and disability rates go through the roof. As it is, disability leaves will increase, especially stress-related leaves. To help stem the tide of stress-related leaves, organizations must establish comfortable work environments, flexible work hours and ensure that jobs fit the personality of Gen Yers by being flexible, challenging, creative, and empowering.

MANAGEMENT STYLE

Finding balance between providing a work environment that accesses the genius of Generation X and Y, yet doesn't alienate current staff who enjoy the existing work environment, will remain a test for managers. The one-size-fits-all approach to management may have worked for "Veterans" and boomers who both understand structure, hierarchy, corporate loyalty and respect for those in senior positions. Those days are, however, long gone. A move from function-based work to project-centered work will be desired by tomorrow's workers.

So get ready. The first Gen Y wave is just now graduating from university and entering the workforce. It won't be long before they'll be calling on employers to develop new ways of attracting, retaining, and supporting this millennium's employees.
 
Drug & Pharmacy Dispensing Costs

Written by Thorpe Benefits, August, 2004

Canadians are buying, taking and spending more on drugs than ever before, making pharmaceuticals the second highest expenditure in the Canadian health care system. (Hospital funding holds the number one position.) Much of the increase can be traced to growing consumer demand.

Insurance companies use "experience ratings" to determine what premium a group plan will pay at the time of renewal. Depending on the size of the group and the type of plan, it might only take a single claim for an expensive breakthrough drug to throw those experience ratings out of whack and put the group's renewal premiums out of reach. Consider that some new therapies can cost as much as $20,000 to $40,000 per year, per patient. And depending on the illness, these costs can be ongoing, repeating each year. Even with the savings achieved through lower absenteeism, higher productivity, fewer hospital stays and more, the impact on the drug plan's "experience" could result in significant health premium increases at time of renewal.

Did you know that two-thirds of Canadians are loyal to one pharmacy for all of their pharmacy needs?

Consumers choose location as the most important factor when deciding which pharmacy they will use; price isn't important. The list below shows the differences in dispensing fees among pharmacies. Unless cost containment measures are implemented into your group plan, rates from insurance carriers will reflect your plan accordingly.

To find out more about the plan design options your group may have, feel free to contact Thorpe Benefits.