Our Nation’s Healthcare

Many seniors living on fixed incomes from company pension plans and government pensions are finding it increasingly difficult to manage all of their expenses. While prices are going up, their pensions do not increase at nearly the same rate and as a result they make tough decisions about various things that they would like to have, but are unable to afford.
One of these areas is life insurance. Many seniors will allow their life insurance to lapse, simply by not making the premium payments any longer. There is an alternative to allowing your life insurance to lapse. This alternative is known in the business as life settlements.
A life settlement occurs when you sell your life insurance to an investor who agrees to continue paying the life insurance premiums and will collect the life insurance upon your death. In return he or she will pay you at the time of purchase a life settlement amount, which will be a value less than that of the value of the life insurance. The life settlement amount is determined by a number of factors.
For example, your life settlement amount will be determined by the original amount of the life insurance, your life expectancy, the cost of the premiums, the current and projected interest rates and health of the insurance company that is providing the life insurance coverage. All of these factors are taken into account when determining your life settlement value.
Seniors on fixed incomes can use this money for whatever they need. In some cases they will pay off medical bills; use for nursing home care;  or use the funds from life settlements to make their lives more comfortable. Others will use the funds to purchase a few gifts for the family or go on a dream vacation. Whatever you use the funds for, this approach is much better than simply allowing the life insurance cover to lapse and receiving nothing at all. You also receive a percentage of the funds now instead of your estate after you are gone.
Regardless of your plans for your life settlement, it costs nothing to look into your options. We will give you an estimate based on an evaluation of the information you provide to us about your insurance and your health. Of course this is an estimate and the actual number will depend on the final appraisal and value that the investors who will bid on your life insurance settlement will provide. Either way it costs nothing to find out and you can then use this information as part of your financial planning activity.
The upside of a life settlement
A policy owner has the opportunity to invest the proceeds of a life settlement into a more suitable asset, or use the funds for other necessities of life, such as coverage of health care costs.
Some situations which may reflect a need for a life settlement are where:
•    a replacement policy is needed due to a change in the size of an estate
•    the premiums are no longer affordable
•    a change happens in the status of a beneficiary (i.e. minor children are now successful adults who earn high incomes of their own) and the coverage provided by the policy is no longer needed
•    funds are needed to cover the cost of long term care insurance
•    a policy owner wants to reallocate the cash value and future premiums to other assets
•    a divorce or bankruptcy occurs
•    a company key person insurance policy is no longer needed
•    the life insurance coverage is related to an obsolete buy/sell agreement
•    the amount of life insurance coverage associated with an estate is no longer needed due to gifting
•    a policy owner wants to fund a charitable gift
Estimates from a study conducted by the actuarial consulting firm Milliman U.S.A. show that approximately 88% of all universal life policies never mature to an actual death claim (Report on Life Settlements, National Underwriter, March 2004). It is believed that many of those policies just simply lapse. The life settlement process allows your client to tap into the potential value of an underutilized life insurance policy and subsequently reallocate that value to other more cost effective and suitable alternatives.

By Tim Howes for FranchiseHelp
People often ask me which is the best franchise system. That’s a difficult question since franchising is represented in so many industry sectors.
There is one company that rises above them all whether we compare unit sales, customer loyalty, frequency of visits, customer service, employee turnover or productivity. If they open a location next door to your competing franchise, your next and best logical action would be to lock the doors, buy some plywood and board up your building to stop the hemorrhaging. If this company offered you a franchise, you’d beg, borrow and steal to buy one.
There’s only one problem. This tightly controlled, family run chain has never franchised their system since their founding in 1948.
Yes, we are talking about In-N-Out Burger.
Even if the company doesn’t offer franchises, all is not lost. There are a few In-N-Out attributes worth applying to every business such as:
Delivering Consistently High Quality Offerings – The Company’s founders never sacrificed quality for quantity. This is one of the reasons that In-N-Burger has expanded slowly over the last 60 years to just over 200 units. The company sources their food products from local farms. You can see the actual potato that will shortly become your french fries. Try that at Burger King or McDonald’s.
Provide Greater Value – People buy value, not necessarily low prices. In-N-Out Burger doesn’t need a “99 cent menu”, as evidenced by the large crowds that gather during peak times and drive-thru lines that wrap around the building.
Hiring Right - Employees are pleasant and cheerful with a genuine interest in serving you. Employees actually work diligently and efficiently, which is a little off-putting the first time one witnesses this phenomena in person. Is there something in the water?
Contrast this with employees at a ubiquitous east coast donut and coffee chain offer classic service lines like “What youz want? (English translation: May I take your order?)” and “Zat it? (Does this complete your order?)”.
In-N-Out burger selects the right employees, not just warm bodies.
Compensating For Competence – There is a reason why In-N-Out Burger attracts a superior pool of candidates. The company compensates the right people well and provides unheard of benefits in their industry. Managers are promoted from within and receive compensation that commonly approaches and exceeds 6 figures.
Actually Caring – This is a tough one to teach, because you either have it or you don’t. You can’t teach people to care. At In-N-Out Burger, one gets the sense that the owners sincerely care about their employees. And guess what, the employees care back, take care of the customer and are actually happy and proud to work there.
Keeping It Simple – The simple menu doesn’t try to be all things to all people. This is quite reassuring in this day where they typical casual dining restaurant menu require a table of contents to navigate.
Simplicity means easier execution, reduced process time and fewer errors, resulting in greater consistency and excellence.
Developing a Cult Following –As a result of the above attributes, the company has made going to In-N-Out Burger a near-religious experience for its followers. The company even offers a secret menu for In-N-Out aficionado’s to add to the mystique.

Conclusion
None of these attributes are “secret”. Yet, few companies apply few of In N’ Out Burger’s competitive advantages.
If visiting an In-N-Out Burger isn’t on the list of 1001 places you’ve got to visit before you die, it should be. Visit and see what lessons you can glean from the ultimate un-franchise.

Tim Howes works on special projects with FranchiseHelp and editor of www.expansionadvice.com, a blog/website devoted to helping franchise companies learn best practices. In addition to his consulting duties, Tim is also Assistant Professor of Management at Johnson and Wales University in Providence, RI where he designs and develops seminal courses in finance and entrepreneurship.

By Sandy Mazur

Franchising World June 2008

Companies are at the starting line of a long, competitive race in the quest for skilled talent.

More than 10 years ago, Spherion Corp. launched the Emerging WorkForce Study, a research initiative designed to provide a comprehensive portrait of changes in the American work force in the context of ongoing social and economic events. Since that time, Spherion has continued to track the growth of an emergent work force and the resulting implications for U.S. employers in 1997, 1999, 2003, 2005 and 2007.

It was discovered that while attitudes and opinions of the work force were changing, the majority of employers were reluctant to adopt a style of management which would allow them to attract and retain top talent. This can be a critical oversight for franchise businesses.  Management style is particularly important to franchise businesses, as the performance of employees has a direct effect, not only on the franchise owner’s business, but on the franchisor, overall.  

Unquestionably, labor-market dynamics are changing. In anticipation of a labor market characterized by a smaller supply of educated and skilled workers relative to demand, it is critical to gain insights such as, the things that drive retention for workers, how work-life balance programs impact workers’ job satisfaction and how many employees plan on leaving their jobs at their own initiative. This will help to ensure that a company is implementing the most effective human resource strategies. 

An increasingly abundant segment of workers have slowly embraced a new attitude and mindset toward career and the employment contract. Beliefs about work-life balance, career growth and individuals’ control over their careers set emergent workers worlds apart from their more traditional peers.  Let’s define each group’s core values:

Emerging Values

Emergent workers generally believe they should be more in charge of their careers, and in fact, are. They are more likely to feel that they should help their organization succeed by continuing to improve their skills, and are therefore intent on working for a company that rewards employees based on performance rather than tenure. They seek out employers who provide ongoing training, employee performance incentives and a work environment that encourages performance. In fact, contributing at high levels is how emergent employees define their loyalty to their employer, not by how long they’ve been on the payroll.

Traditional Values

On the other hand, traditional workers are characterized primarily by their need and desire for safety and security. These employees look to their employers to lead the way when it comes to providing a clear career path, and in return, will offer a long-term commitment to the company. They are more likely to believe workers should be rewarded based on tenure, not necessarily performance. Companies may feel these workers are an asset given their loyalty and work place values, however, in a marketplace that places a high price on productivity, workers who are primarily slow and steady may not yield the best results.

The Migrating Spectrum

While workers were widely divided on their attitudes toward a host of work place characteristics and values, thus designating themselves as emergent, migrating, or traditional, there were several emerging viewpoints that firmly unite these three groups of workers. Strong opinions about work-life balance, career growth and career control have gone mainstream. Nearly half of all U.S. workers are currently on the path from traditional to emergent. Migrating workers themselves have been further refined and broken down into three distinct segments: emerging-migrating, migrating and traditional-migrating. However, no clear picture has yet to materialize as to distinct opinions on these particular work-place characteristics or values.

What Does it Mean for Franchisors and Franchisees?

The revelation that even the most traditional workers are starting to have some doubts about the principles on which they’ve built their approach to work should be a red flag for U.S. companies. This situation presents both opportunities and challenges for franchisors and franchisees.

Emergent workers believe strongly in the notion that periodically changing jobs can advance one’s career and are confident in their ability to step outside the protective walls of the more traditional, corporate structure. This is especially important for franchisors to note, as this apparent change of heart among workers when it comes to beliefs about loyalty and desire for job security is resulting in an increase in the number of new franchisees. Workers who are embracing an emergent outlook are more likely to believe that starting their own businesses is a great opportunity to control their own career path.

However, this situation can also present itself as a challenge to employers. Companies and their employees wholeheartedly disagree on what drives retention. Employers and employees ranked every factor of retention differently in terms of priority. An already vast disconnect between worker and employer will continue to widen, and companies will struggle to be competitive in the marketplace for talent. Frustration and lost control over its work force will characterize those companies and franchisees who are reluctant to understand and adapt to a changing employee mindset.

To effectively compete in the battle for talent, franchise businesses must embrace and implement a management style, recruitment and retention plans reflective of emergent attitudes. Failing to do so would be equivalent to dismissing a large portion of potential workers from an already-depleted resource pool. Franchisors and franchisees should be quick to begin shaping recruitment and retention programs based on what has become a mainstream emergent mindset.

A small group of employers has embraced this reality and adapted its work places to accommodate a new style of worker by addressing work-life balance in meaningful ways, creating opportunities for creativity, innovation and learning on the job, and are beginning to give their work forces a sense of stability, albeit perceived. Unfortunately, for many employers, a continued reluctance to adopt such emergent practices has resulted in a dangerous disconnect between themselves and their employees.

Companies are at the starting line of a long, competitive race in the quest for skilled talent. Through such tools as the Emerging Workforce Study, employees are helping companies navigate the race course and avoid stumbling blocks and potholes along the way. Like mile-markers, these signs provided by workers themselves include building career development and growth from the inside out, being an “employer of choice” and embracing a mainstream mindset and utilizing self-reliant workers to drive organizational flexibility. 

Sandy Mazur is the vice president of the franchise/license group for Spherion Corporation. She can be reached at 678-867-3000.

Health care experts universally agree that the United States is experiencing an epidemic of childhood obesity. Obesity-related diseases that have heretofore affected the adult population – diabetes, heart disease and others, are now affecting large numbers of children. While there are many theories as to the reasons for this increase in childhood obesity, there are three facts that are indisputable: (1) Obese children will likely be obese adults, (2) Public health care programs and facilities will be dramatically impacted by this increase in obesity-related disease and (3) Changes in behavior among children which includes increased physical activity and better nutrition will positively impact this trend.

Additionally, obese children are far more likely to be diagnosed with mental health disorders or bone and joint disorders than non-obese children. Treatment for these and other conditions contribute to the higher-than-average short-term medical cost.

SOME OF THE SPECIFIC STATISTICS OF OBESITY

• Since 1980, the prevalence of overweight has doubled among children aged 6-11 years and tripled among adolescents aged 12-19 years.

• Almost 14 million children - 24 percent of the U.S. population ages 2 to 17 are obese. An additional 8.6 million children are at risk for obesity.

• Obesity and physical inactivity account for more than 300,000 premature deaths each year in the U.S.

• In 2000, the total cost of obesity in the United States was $117 billion.

• In Texas the cost was over $10 billion.

• The typical child watches approximately 40,000 TV ads each year and the majority of ads target candy, cereal soda and fast food.

• 26 percent of children ages 8 to16 spend four or more hours in front of a television or computer screen each day.

• Fast food outlets spend $3 billion dollars in television ads targeted to children.

• Children under 12 will spend $35 billion of their own money and influence $200 billion in household spending in 2004.

• Much of the blame for the childhood obesity epidemic has been placed on consumer products companies, especially food and beverage companies and children-oriented media and they have responded with product reconfigurations, and media counter-attacks.

• From 1986 to 1998, obesity among black and Hispanic children increased by more than 120 percent, compared to about 50 percent among Anglo children.

• In 2004, the annual cost for obese children insured by private insurance was $3,743.

• In 2004, the annual cost for obese children insured by Medicaid plans was $6,730.

With the understanding that something has to be done, Strategic Franchise Services’ sister company Strategic Healthcare Initiatives (SHI) has developed a program called NonStop™. We recognize that any reduction in weight gain in the early years will have a compounding effect on the overall cost of obesity in years to come, and that the program needs to be more than an awareness campaign and to be effective it must be measurable.

Therefore with the support and direction from a wide range of pediatric specialists, children’s marketing experts, advocates for children’s health and even the then U.S. Surgeon General, Dr. Richard Carmona, SHI has invested more than five years, substantial human resources and financial resources in the development of the NonStop™ program. This program is a, “rewards” based, on-line, behavior modification program that encourages children ages 5-13 to increase and track their physical activities and make better choices in their nutrition. The “rewards” are earned by meeting personal and programmatic goals and objectives over 7, six-week periods. The tracking of personal physical fitness and nutrition activities is enabled by a robust, age-specific website (www.goingnonstop.com) and printed collateral materials.

NonStop™ has been used as value added programs for Health Plans, community sponsored programs for civic minded organizations, and coupled with an adult wellness program it’s been used for a cause branding marketing strategy. For more information contact Tom Keenan at tomkeenan@strathealthcare.com.

Every small to medium size organization, including the franchise community, in the United States has the problem of finding affordable health benefits for the employees and owners  of the organization.   In addition, there are the independent contractors and self-employed who have even more of a problem in locating affordable coverage.
The factors increasing this problem of locating affordable health benefits are caused by:
•    Size of most small businesses…under 10 to 15 employees
•    Number of employees who will participate in the benefit program
•    Health and ages  of the employees in the small group
But, the overriding problem, is that most small employers and individuals do not understand the many  health insurance programs and products that are available and do not want to or have the time  to do the research required to identify the various products that would match their requirements. Many  individuals from the ages of 35 to 65 who go into  business  have probably had their previous employers provide health benefits and the most the individual had to do was chose between several different plans.  Human Resource staffs did all of the research into the various plans and the employees  just had to select the plan  that was  presented to the employees.
For the person who made the decision to start a business or purchase a franchise, the challenge is even more difficult because many times the new franchisee is under the impression that the franchisor can provide health benefits.  The problem, each franchisee, is a separate business entity and must stand on its own as an organization. The franchisee problem is further complicated by:
•    Size of the franchisee workforce…many times 2 or 3 full-time and many part-time employees who don’t need benefits or have a spouse or family member  who carries their insurance.
•    Age of the franchisee and spouse…many new and existing franchisees are in the age group of 40 to 65 and possibly have several health issues which must be addressed.
•    Number of franchisee locations in a number of different states which all have separate and many times more insurance requirements than the state where the franchisor is located.
•    Lack of knowledge on how to research benefits and the desire to do the research.
•    Vast number of benefits plans to choose from is confusing and many times overwhelming.
There are several steps a person and/or employer can take in order to make the selection process less complicated and rewarding.   Such steps as:
•    Do a personal and organizational needs assessment.  Number of persons to be covered, ages, and health issues.  These three factors may quickly determine the type of coverage.  If a person is age 50 with some health problems the selection is much different that the 30 year old in excellent health.
•    Establish a monthly health benefit budget that is affordable and will assist in recruiting and retention of employees.  Key question: What can the business afford to pay per month for health benefits?  If the answer is nothing, then the employer should attempt to offer other solutions and/or information for those employees who desire or must have some type of benefit coverage.
•    Determine the amount of risk to be assumed by all parties included in the benefit program.  Can a person afford a $5000 deductible major medical plan with no prescription or dental coverage?
•    Is it more important to cover such expenses as prescriptions and doctor visits or is it imperative  to cover critical illnesses.
•    Depending on the age of persons in plan, an HSA plan may be an excellent choice coupled with a limited insurance benefit plan.  Many employers establish HSA plans for employees by providing X dollars towards a monthly HSA and the employee is free to increase the coverage if the needs assessment indicates additional coverage is required.  And, most important the employee or owner is creating a Saving Account for the future and now starting to manage a personal benefit program.
•    A significant number of small employers and franchisees have decided not to offer health benefits or the employer pays  the employees an additional amount each month to offset some of the cost of the employee obtaining health benefits.
•    Set time aside to do the necessary research into the many options available in the marketplace.  Such plans as major medical (HMO’s and PPO’s) plans, Limited Insurance Plans, Critical Illness,  and Accident Plans to name a few.
•    The small employer and individual should focus on Individual health plans and not group plans.  Why? Because of group size and if it is a small employer, each employees can select his or her plan.
•    Select benefit plans offered by A and A+ rated insurance carriers because they are the most likely to pay claims in a timely manner and have the financial assets required to meet their obligations.
•    Review various discount medical products to determine if selected benefits can supplement a major medical or limited insurance plan.  For example, dental discount plans offer a much better return when compared to the monthly premiums and deductibles of many dental plans.
•    Select an individual and/or organization that has the experience and desire to provide health benefits to franchises and other small organizations.   Many insurance agencies prefer to offer life, accident, and personal lines rather that health insurance. And, most do not understand the franchise industry.
As President and Co-Founder of Strategic Franchise Services, I would encourage you to visit the web site www.franchiseehealthbenefits.com and review the various benefit selections available to individuals, employers, and franchisees.  This site was developed for franchisees and their employees.

Strategic Franchise Services (SFS) was founded on the belief that everyone is entitled to affordable health benefits. It really shouldn’t matter if a person is an independent contractor, part-time or temporary employee, or a full time employee…each individual should have access to affordable health benefits. The problem is finding the appropriate program and being prepared to review the programs with real time research, product knowledge, and what other people are experiencing in their search for the right benefit program. That’s why SFS has implemented this blog…We want to hear from you about your experiences and to provide you with information from leading industry sources.
SFS is a division of Strategic Healthcare Initiatives (SHI). SHI is a 10 year old health care consulting organization that provides all types and kinds of health consulting services from reviewing client health insurance plans to developing comprehensive corporate benefit programs. In addition, SHI developed and markets two national training programs. The first and most comprehensive program is NON STOP, a behavioral training program for enhancing and controlling children’s diets and exercise programs. NON STOP trains children to change their eating habits and to maintain daily exercise programs. The other national program the SHI has developed and markets is a HIPPA training program, REGEMEN, that is utilized by leading healthcare organizations, physician practices, and associations.
Please forward any questions you may have or send us your experiences in your quest for better health care.