In the event of a pandemic, human resources needs to be prepared to work with a limited number of employees. In preparation of this, HR departments should be aware and make proper preparations for: skills assessments, identification of critical jobs, temporary job reassignments, occupational health and safety issues, working from remote locations, compensation, absence reporting, benefit programs and others. According to a Mercer Human Resource Consulting survey, the discussions around benefit policies and their integration into a pandemic plan remain disconnected. For many companies, this means that a keen analysis of current plans needs to be completed to ensure their adequacy for a pandemic outbreak.
Benefit policy implications can be grouped in four categories: leave and time-off, retirement/pension benefits, insurance benefits, and assistance benefits. For each category, it is important to remain in compliance with any applicable laws and regulations in the relevant location. For example, the definitions of work-related illness vary broadly between nations (and between states within the US).
Leave and Time-Off (including sick leave, paid time off and related leave)
The policies of many companies plan for fixed periods of planned leave (e.g., vacation, personal days), time off for illness, and unexpected time off for special circumstances (family medical leave, bereavement leave). A pandemic has the potential to test the limits of each. With each wave, a family may have one or more individuals who become ill, requiring a parent to use leave for his or her own illness plus that of children. Requirements for doctor approval to return to work may be impractical, and leave days may be quickly exhausted. Many employees may be afraid to come to work or they may have a sick family member, creating a higher absentee rate. With a higher mortality rate than seasonal flu, bereavement leave benefits may also become exhausted or create conflicts for the company dealing with severe absenteeism.
Retirement/Pension Benefits
Experiences following the 2003 SARS outbreak and other physical catastrophes, including Hurricanes Katrina, Rita and Wilma, suggest that people who suffer financial losses look to retirement plans for immediate economic relief. The higher attack rates associated with pandemic flu are expected to yield higher rates of mortality and/or disability, the latter perhaps accelerating retirement timing for some older employees. With retirement, death, or termination of employment being eligible causes for distribution of assets, as well as unreimbursed medical expenses pandemic planning needs should include an overview of administrative capabilities for processing benefit requests and the financial effects of depression of assets caused by withdrawals. This effect will vary between companies, based on employee demographics, locations, and size of the plans. With a high mortality rate, it may also be wise to make certain beneficiary designations are current for retirement plans.
Insurance Benefits (including health, life and disability)
Both insured and self-insured plans could suffer from a pandemic. Important considerations include both benefit design and the ability to provide support during pandemic conditions. Questions that warrant critical evaluation include:
- Can employees obtain extended supplies of basic medications?
- Do benefits or company wellness programs offer/cover seasonal flu vaccination?
- Do benefit plans cover anti-viral medications?
- Would a vaccine for H5N1 be covered, once available?
- What benefits are available for expatriates? For short-term travelers whether on business or personal travel? Do special instructions need to be provided for travelers?
- What is the financial impact of out-of-pocket maximum limits being reached by a larger than normal percentage of covered people?
- Does the insurer or third party administrator have a pandemic plan to ensure that benefit questions are addressed and claims processed?
- How will waiting periods, elimination periods and definitions for being actively at work be applied during a pandemic?
Administrative issues may also emerge. Communicating policies regarding missed employee contributions for insurance premiums may relieve employee concerns, as well as demonstrate that the company has thought about important personal issues.
Assistance Benefits
Many companies offer Employee Assistance Programs (EAPs), which can become an important means of support for employees or their family members following the avian flu-related illness or deaths of relatives or friends. Also, assisting traveling employees should become a priority. A National Business Group on Health survey shows 50% of employers plan to give contact information for international medical providers and facilities to their employees, with almost 71% of international companies providing such information to their travelers. Each company should have some form of information regarding a pandemic plan for their international employees.
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