IRS Issues Guidance on Reporting Health Coverage Cost on Forms W-2

CLICK HERE for IRS FAQ's on reporting the cost of employer-provided heath care coverage on employees' Form W-2s.

On Jan. 3, 2012, the U.S. Internal Revenue Service (IRS) issued Notice 2012-9, with interim guidance on meeting the requirement under the Patient Protection and Affordable Care Act (PPACA) to report on employees' W-2 forms the cost of their group health insurance coverage. This information must be furnished beginning with 2012 W-2 forms, which generally must be provided to employees by the end of January 2013. The aggregate cost of an employee's health care coverage is to be determined under rules similar to the rules for determining the applicable premium for COBRA continuation coverage.

Generally, all employers are required to meet the new W-2 reporting requirement, but the IRS provided some exemptions in transition relief, including one for small employers who filed fewer than 250 Forms W-2 in 2011. Such employers are not required to report the value of employer-provided health care for 2012.

Background
PPACA defines applicable employer-sponsored coverage subject to the reporting requirement as coverage under any group health plan that is excludable from the employee's gross income, or that would be so excludable if it were employer-provided coverage under the Internal Revenue Code.

Observation: It is important to recognize that health coverage is treated as applicable employer-sponsored coverage without regard to whether the employer or the employee pays for the coverage and whether the value of the coverage is includible in the employee's income.

General Requirements
All employers providing applicable employer-sponsored coverage must report the cost on their employees' Forms W-2. This includes federal, state and local government entities, churches and other religious organizations and employers not subject to the COBRA continuation coverage requirements. But it does not include federally recognized Indian tribal governments. Notice 2012-9 adds that corporations owned by Indian tribal governments also are excluded. Transition relief is provided to certain of these employers under the notices, as described below.

The cost of the coverage is to be reported beginning with the Forms W-2 issued for 2012, in Box 12 with a Code DD.

Certain Coverage Not Included
Applicable employer-sponsored coverage does not include:

• Long-term care insurance.
• "Excepted benefits," which includes accident or disability income insurance; liability insurance; coverage issued as a supplement to liability insurance; workers' compensation or similar insurance; automobile medical payment insurance; credit-only insurance; and other similar insurance coverage under which benefits for medical care are secondary or incidental.
• Limited scope dental or vision care provided under a separate policy.
• Coverage only for a specific disease or illness, hospital indemnity or other fixed indemnity insurance.

In addition, the cost of coverage does not include contributions to health savings accounts (HSAs) of the employee or the employee's spouse, contributions to a health reimbursement arrangement (HRA), salary reduction contributions to health flexible spending arrangements (health FSAs) or contributions to Archer medical savings accounts (MSAs).

Also excluded are the costs of self-insured plans not subject to the COBRA requirements (such as a self-insured church plan), multiemployer plans to which the employer contributes, and plans provided by governmental employers to members of the military or their families.

Notice 2012-9 provides that an employer may elect to report the cost of coverage that is excluded under these rules as long as the coverage is applicable employer-sponsored coverage and the general rules for determining the cost of coverage are met. Where an employer has a plan that includes applicable employer-sponsored coverage and other benefits, such as a long-term disability plan that provides health benefits, Notice 2012-9 provides that any reasonable method for determining the reportable costs may be used.

Important Clarifications
Clarifications in Notice 2012-9 that are worth noting include:

Health FSAs.A new example illustrating the exclusion for salary reduction contributions to a health FSA. Any employer contributions to the FSA in excess of the employee's salary reduction must be reported. 

Stand-alone vision and dental plans.The standard for determining whether the cost of coverage under a vision or dental plan is subject to the reporting requirement is the same as the standard for determining whether the plan is subject to HIPAA rules. Thus, if the coverage is offered under a separate plan or policy where participants may elect not to be covered, and those who elect coverage must pay an additional premium, the coverage need not be reported. 

EAPs, wellness programs and on-site clinics.The cost of coverage under an employee assistance program (EAP), a wellness program or an on-site medical clinic is not required to be reported if the employer does not charge a premium for the cost of this coverage to COBRA beneficiaries. 

Hospital indemnity/specific disease coverage.The exclusion from "applicable employer- sponsored coverage" for hospital indemnity plans, fixed indemnity insurance and coverage for a specific disease does not apply if the employer makes any contribution to the cost of coverage that is excludable from income, or if the employee purchases the policy on a pre-tax basis under a cafeteria plan; such contributions must be reported. 

Third-party sick pay.Third-party sick pay providers furnishing Forms W-2 are not required to report the cost of employer-provided health care, but any Form W-2 provided by the employer must include such costs whether or not a third-party payer is separately reporting sick pay. 

Excess reimbursement for highly compensated Individuals.The reporting requirement does not apply to the cost of coverage includible in income under tax code section 105(h) (discriminatory self-insured medical plans) or payments includible in gross income for a 2 percent shareholder employee of an S corporation that is required to include the premium payments in gross income.

Informational Only
Notice 2012-9 reiterates the statement included in prior guidance that this reporting is informational only; nothing in the statute or in the guidance issued or contemplated for the future causes or will cause otherwise excludable employer-provided health care coverage to become taxable.

Observation: PPACA will impose a 40 percent tax on the value of excess health coverage beginning in 2018. Form W-2 reporting of the value of employee health coverage will likely provide valuable information to the IRS in assessing this high-cost-plan tax in the future.

Terminated Employees
Notice 2012-9 includes the helpful guidance from the earlier notice concerning the reporting requirement with respect to employees who terminate employment during the year. As long as the employer is consistent in reporting the cost of coverage under a particular health plan for all employees who terminate employment during the year, any reasonable method may be used. For example:

• The employer may report only the costs for the portion of the year during which employees were active employees covered by the plan, and ignore any costs for post-employment coverage, such as COBRA continuation coverage.
• Alternatively, the employer may choose to report the cost of both pre-and post-employment coverage on the employee's Form W-2 for the year of termination, as long as this is the treatment for all covered employees who terminated during the year.
• Employers are not required to report the cost of coverage on a Form W-2 furnished to a former employee who requests their Form W-2 before the end of the year in which the employee terminated employment.
• No reporting is required for an individual to whom the employer is not otherwise required to issue a Form W-2, such as a retiree or other former employee who received no compensation.

Observation: Employers may use any reasonable method to report the cost of coverage to terminated employees as long as they use the same method consistently for all terminated employees. Thus, for the first year in which an individual retires, an employer may choose to report the cost of coverage for the entire year, including both the active coverage and the retiree coverage, on the Form W-2 that reports the employee's final compensation from the employer. Alternatively, the employer may choose to report only the value of the active coverage.

For future years, when no Form W-2 is required to be provided to the retiree, there is no requirement to report the cost of health coverage.

Calculating the Cost of Coverage
The total cost of coverage provided to the employee is to be reported, whether paid by the employer or by the employee. PPACA provides that the reportable cost is to be determined under rules similar to those for determining the applicable COBRA premium under the Internal Revenue Code. The employer may use the COBRA applicable premium method, the premium charged method or the modified COBRA premium method under the COBRA regulations. The additional 2 percent allowed to be added to the applicable premium charged to COBRA beneficiaries is not included in the reportable cost.

Observation: Current regulations under COBRA do not address the calculation of the COBRA premium specifically but provide that this determination must be made in good faith compliance with a reasonable interpretation of the statutory requirements.

The premium charged method may be used to determine the reportable cost only for an employee covered by an insured plan. The employer must report the premium charged by the insurer for that employee's coverage for the period.

The modified COBRA premium method may be used where the employer subsidizes the cost of COBRA coverage. Under this method, the reportable cost is to be determined based on a reasonable good faith estimate of the COBRA applicable premium for the period (if that is the method used to determine the subsidized premium), or where the employer charges COBRA beneficiaries the prior year's premium, in which case the reportable cost may be based on the prior year's cost.

Notice 2012-9 provides that an employer who uses a composite rate for active employees but not for COBRA beneficiaries may use either rate for determining the applicable cost to be reported, provided it is used consistently.

The reportable cost for a year must take into account any changes in coverage for the employee during the year, and it must be determined on a calendar year basis for all employees regardless of the plan year. Notice 2012-9 includes new guidance for determining applicable costs where a pay period spans Dec. 31 in any year, and where an employee notifies the employer of changes in his or her coverage for a prior calendar year after Dec. 31 of that year.

Transition Relief
Under PPACA, the W-2 reporting provision was to become effective with respect to 2011 Forms W-2, but in Notice 2010-69, issued in October 2010, the IRS made the requirement optional for 2011. In addition, IRS Notice 2011-28, issued in March 2011, provided that employers were not required to report the cost of health coverage on the Form W-2 for 2012 and later years if they filed fewer than 250 Forms W-2 in the prior year (these employers also are exempt from the requirement to file returns electronically.) This exemption will apply until further notice but at least through 2012.

Notice 2012-9 clarifies this exception with respect to employers using an agent to file Forms W-2 so that the determination is made without regard to the use of the agent. If the employer would have been required to provide at least 250 Forms W-2 in the prior year had the employer not used the agent, the reporting requirement will apply for the current year.

The exception for small employers, as well as the exceptions from the reporting requirements for coverage under a self-insured plan that is not subject to any federal continuation coverage requirements, the exception for plans maintained primarily for members of the military and their families, and the exceptions with respect to Forms W-2 provided to terminated employees before the end of the year, multiemployer plans, HRAs and stand-alone dental and vision plans are all effective unless limited by future guidance.
Any such future guidance likely will be applicable not earlier than the calendar year beginning at least six months after publication of the guidance.

Birgit Anne Waidmann is director of PricewaterhouseCoopers human resource services, based in Washington, D.C.

Improve Employee Relations - Strengthen the Team

For the organization to perform better it is important that the employees are comfortable with each other, share a good rapport and work in close coordination towards a common objective. People feel responsible and motivated to do good work and enjoy their work rather than taking it as a burden.

It is important that the management promotes healthy employee relations at workplace to extract the best out of each individual. Competition is essential but it should not promote negativity or any kind of enmity among the employees.

To follow are some strategies for a healthy employee relationship in the organization.

Involve your team members: They should feel important and indispensable for the organization. An individual must be assigned responsibilities according to their interests and responsibilities. Don’t impose work on them. Let them willingly accept challenges. They must enjoy whatever they do otherwise they would end up fighting with their superiors and fellow workers.

Encourage individuals to share their work with each other: This way people tend to talk with each other more, discuss things among themselves and thus the comfort level increases. Let them work together and take decisions on their own. A team leader should intervene only in extreme cases of conflicts and severe misunderstandings.

Assign them targets and ask all your team members to contribute equally and achieve the target within the desired time frame. Motivate them to work in groups. This way employees have no other choice than to trust their fellow workers and take each other’s help as well. An employee must have the liberty to express his ideas and all of them should sit together to decide on something which would be beneficial to all.

One should try his level best that all the employees must have their lunch together at the same time. Half an hour to forty-five minutes must be dedicated to lunch and one should not discuss work during lunch time. There are other topics as well. Discuss movies, sports, shopping or any other thing under the sun. There will be no harm if the employees go out together once in a while for get-togethers, picnics or shopping. Ask them to bring their family members as well.

Encourage effective communication among the team members. It has been observed that poor communication leads to confusions and misunderstandings. The communication has to be precise and relevant. One should not play with words and be very specific about his expectations from his fellow workers as well as the organization. If you are not very happy with your colleague’s proposal, don’t keep things to yourself. Voice your opinion and do express your displeasure. It will definitely prevent a conflict among employees later and improve the relations among them. Be straightforward. Don’t pretend things just to please your boss. If you find anything unacceptable, discuss with your superior but in a polite way.

Written modes of communication must be promoted among the employees for better transparency. Verbal communication is not as reliable as written communication. The agendas, minutes of the meeting, important issues must be circulated among all through emails. Make sure that all the related employees are in the loop. Don’t communicate individually with any of the employees as the other one might feel neglected and left out.

Morning meetings is another effective way to improve the relation among the employees. Let everyone come together on a common platform and discuss whatever issues they have. The meetings must not be too formal. Allow the team members to bring their cups of coffee. Start your day with a positive mind. Greet everyone with a warm smile. Exchange greetings and compliments. If any of your team member is not in a pleasant mood, do take the initiative and ask what is wrong with him. Try your level best to provide him a solution.

Organize birthday parties, Christmas parties, New Year parties etc. at the workplace. These small initiatives actually go a long way in strengthening the bond among the employees. Ask all of them to decorate the office, their work stations and make all the necessary arrangements themselves. You will actually be surprised to find out that everyone would be ready with something or the other. Employees would actually take the initiative and organize things on their own. Let them enjoy with each other and have fun.

Praise the individual if he has done something exceptionally well. Reward him suitably. The names of the top performers must be displayed on the notice boards for others to draw inspiration from them. Encourage everyone to perform well to live up to the expectations of the superiors as well as the management.

A healthy relation among employees promotes a positive ambience at the work place and employees feel happy and satisfied at work. They look forward to going to office daily and also work hard to realize their team’s as well as organization’s goals. 

What are some things you do to build a better bond and increase productivity in your workplace? Let us know below.

How Do You Engage With, Retain and Motivate Employees?

Engagement is big in the HR consultancy market, yet there is a dearth of academic research in this area. We believe that engagement is more than a passing fad – it brings clear business benefits. Raising engagement levels, and maintaining them, takes time, effort, commitment and investment – it is not for the half-hearted.

What is engagement?

A clear view of the behaviors demonstrated by the engaged employee are:

• belief in the organization
• desire to work to make things better
• understanding of business context and the "bigger picture"
• respectful of, and helpful to, colleagues
• willingness to "go the extra mile"
• keeping up to date with developments in the field.

Engagement has clear overlaps with the more exhaustively researched concepts of commitment and organizational citizenship behavior, but there are also differences. In particular, engagement is two-way: organizations must work to engage the employee, who in turn has a choice about the level of engagement to offer the employer.

Engagement is defined as:

A positive attitude held by the employee towards the organization and its values. An engaged employee is aware of business context, and works with colleagues to improve performance within the job for the benefit of the organization. The organization must work to develop and nurture engagement, which requires a two-way relationship between employer and employee.

Measuring engagement:

Below are some sure signs of an engaged employee.

• a positive attitude towards, and pride in, the organization
• belief in the organization’s products/services
• a perception that the organization enables the employee to perform well
• a willingness to behave altruistically and be a good team player
• an understanding of the bigger picture and a willingness to go beyond the requirements of the job.

Engagement challenges

Levels can vary, in association with a variety of personal and job characteristics and with experiences at work. Some key observances are:

• engagement levels decline as employees get older – until they reach the oldest group (60 plus), where levels suddenly rise, and show this oldest group to be the most engaged of all
• minority ethnic respondents have higher engagement levels than their white colleagues
• managers and professionals tend to have higher engagement levels than their colleagues in supporting roles, although people in the latter group appear to owe greater loyalty to their profession than to the organization in which they practice their craft
• engagement levels decline as length of service increases
• having an accident or an injury at work, or experiencing harassment (particularly if the manager is the source of the harassment) both have a big negative impact on engagement
• employees who have a personal development plan, and who have received a formal performance appraisal within the past year, have significantly higher engagement levels than those who have not.

The above statements demonstrate that you need to work hard to prevent, and minimize the impact of, bad experiences. Companies also need to ensure that employees’ development needs (including the special needs of professionals) are taken seriously; paid attention to, and value the roles of, support staff; and to maintain the interest of longer-serving employees. The relatively high levels of engagement of the oldest employees, and of minority ethnic staff, suggest sources of untapped potential within some organizations.

What drives engagement?

Committed employees perform better. If we accept that engagement, as many believe, is "one step up" from commitment, it is clearly in the organization’s interests to understand the drivers of engagement. Many aspects of working life are strongly correlated with engagement levels. However, the strongest driver of all is a sense of feeling valued and involved. This has several key components:

• involvement in decision-making
• the extent to which employees feel able to voice their ideas, and managers listen to these views, and value employees’ contributions
• the opportunities employees have to develop their jobs
• the extent to which the organization is concerned for employees’ health and well-being.

In summary, it is critical to realize and support the importance of the "engaged" employee-manager relationship.

How do you engage your employees? We would love to hear what has been successful for you. Please respond below.

Certification and Supplier Diversity - A Great Business

Consumers have a plethora of choices when selecting a service or product provider, so a differentiated marketing strategy is a key to business success. One vital way to differentiate yourself from the pack by certifying your woman-, minority- or LGBT- (lesbian, gay, bisexual and trans-gender) owned company as a business that meets the exact criteria of several key certifying organizations. You can reap many rewards through this certification by contracting or partnering on projects with other certified businesses, and by becoming a potential  bidder on corporate and public agency contracts.

Many of the Fortune 500 and Fortune 1000 companies, through their supplier diversity initiatives, have annual diversity spend goals. These goals serve to promote the inclusion of  diverse suppliers (that’s you!) into their supply chain. This fosters a mutually positive relationship between the corporations and M/WBEs (Minority/Women Business Enterprise). The Fortunes benefit greatly from utilizing diverse suppliers and the suppliers grow their businesses through lucrative new contracts. These M/WBEs are often more cost-effective and offer an expanded customer base and market share for the corporations who contract with them. Diversity-owned businesses tend to have greater access to emerging markets in urban and global arenas and make outstanding contributions to the economic viability of the communities in which they are located.

State agencies also have diversity initiatives they must satisfy by contracting out to M/WBEs. These certified suppliers bid on jobs in construction and related trades, janitorial services and supplies, landscape management services, subscriptions, internet technology and data management, and so many more.

Being a certified diverse supplier proffers a competitive advantage because these large organizations can only count their diversity spend with certified suppliers. Therefore, actively seeking out the appropriate certification for your business is a key to winning these contracts.

We wanted to share this wonderful article that was recently released by MBE Connect Profiles. We are proud to be a strong supporter of supplier diversity and encourage everyone to get involved.

Courtesy of MBEConnectProfiles

Key to Worker Happiness

An analysis of employee reviews for more than 250,000 large U.S. organizations reveals that a comprehensive benefit mix, opportunities for career advancement and work/life accommodation are top factors in workers' happiness, outpacing even salary. 

The analysis evaluated key factors that impact worker happiness, including benefits and incentives, growth opportunities, work/life balance, compensation, employees’ relationships with their boss and co-workers, work environment, job resources, company culture, company reputation, daily tasks and control over work done on a daily basis. The data accounted for how employees valued each factor and how important that factor was to the employee’s overall happiness. At least 50 employee reviews per employer were required.

A Rich Benefits Mix

Cable TV provider Comcast, which scored among the top companies for employee happiness, offers its workers a competitive benefit package that includes above-average health insurance coverage, a dollar-for-dollar 401(k) match, free financial planning services, life and disability insurance, tuition reimbursement, commuter benefits, legal benefits, adoption benefits, long-term care insurance and pet insurance. In addition, it offers free cable TV and Internet and discounted phone service for employees living in a Comcast service area.

Career Advancement Opportunities

Another top factor contributing to employee happiness is career advancement, the analysis found. Among the highest scorers in this area was the U.S. Navy, which offers service men and women a career advancement program. Service members stated that the Navy training programs provided them with skills that would be applicable in the public and private sector.

Work/Life Factors

Work/life balance has been a significant influence on employee satisfaction levels year over year, according to the analysis.

Courtesy of shrm.org

How do you manage your work / life balance? We'd love to hear from you.

Women Leadership… A Glass Ceiling?

March is considered Women’s (History) Month. The focus of this month is to increase the awareness and knowledge of women’s history. For years there have been books, articles, and talks about women experiencing a glass ceiling when advancing in their careers. I ask why there are discussions about a ceiling existing. This is not to say that women have advanced equally and by the rate that we should have at this point. I suggest we stop the talk about a glass ceiling. Why are we putting a ceiling there that needs to be broken or raised? More focus needs to be placed toward building support, opportunities where you can, developing the next generation, and reaching back and mentoring another female regardless of the level you have achieved.

Women have not reached their highest potential and there is more that can be done. Women have learned to nurture, encourage, multitask, and function in various roles. Instead of focusing on where they are in reference to the glass ceiling, women should put their efforts toward making a greater impact for other women business. Here are a few suggestions:

1. Ensure you have a hand down while you are using the other to climb up. While reading the achievement of women leaders, I notice there were very few that were grooming their replacement or another level of female leaders that were right beneath their current position. If you are building and developing at various levels, we can minimize the achievement gaps.
   
2. Be honest about your struggles. Many times women do not share the various trials and challenges they face on their journey. Some do not because of fear of embarrassment about what they had to endure. Others are embarrassed because they are ashamed of how low their values dipped for achievement. It is important to provide a realistic picture to your female protégés. Be transparent and share your REAL story. If you did things you rather not have, state that. It will come forward anyway. It is better for someone to learn from your mistake. Besides you are painting a picture…..why not make it a Picasso.

The Love & Hate Employee-Employer Relationship

Employees complain about having a bad boss that is either not in touch with reality or not supporting their needs. Working relationships have similarities with intimate relationships. Consider these three elements that are applicable regardless of what stage you are with your Employee-Employer Relationship.

Trust

Most people will argue the foundation of any relationship is trust. Do employees trust that employers have their best interests at heart? Some feedback I received over the year from my client’s employees have gone a little like this …”It amazes me that they want more from me, tell me I should be happy I have a job, and oh by the way….we will not be providing increases this year. However, the executive team still receives increase, bonuses, and the company continues to expand. Why should I trust someone who treats me that way?” Although the employees have some merit to what they are saying, employers could do a better job with helping them understand the company’s strategy. The organization’s vision and goals loses its understanding as it trickles down the organization. Employees need to understand how they contribute to these strategies, be able to provide input up the hierarchy, be heard, and provide input on how some decisions are made. Trust needs to be demonstrated and earned with both parties.

Engage

Getting engaged is a big step toward a serious commitment. Organizations should revisit what happens in dating relationships. People get to know one another to determine if they have enough in common, shared values, beliefs, and vision/goals. Employers have been lacking in this area of their relationships. We are familiar with the characters XOXO (Hugs and Kisses). We are not encouraging you to love on your employees in that manner but would like to share some business characters with you.

ETRM (Environment, Time, Reward, Motivate). You can get them engaged and share your enthusiasm for having them in your work relationship with these letters.

E. Setting the right environment is a major hygiene factor. Managers are responsible for providing a work environment conducive to productivity. How is the ambience in your workplace?

T. Spending time with them to find out how happy they are and how things can be improved.

R. Reward in a way to preserve equity.

M. Everyone needs motivation rather it’s initiated internally or externally.

Prenuptial Agreement – Employment Contract

Signing an agreement before the commitment begins has been taboo and very controversial in relationships. This same sentiment has happened in working relationships. Asking employees to sign agreements like Non-Disclosure Agreement, non-compete clause, or other employment contracts may seem like there is a lack of trust. However, many businesses that use them have seen where trust increase and expectations are clear. This increases the chance of having a quality work relationship. The employee receives more of a guarantee on receiving their wages and the tools and information they need to do a quality job.

How do you handle these challenges in your office? We would love to hear your comments.

NEED a WISH?

I remember a time when the holidays meant time off from work and relaxing with family and friends. There seems to be a new trend emerging that is creating a culture filled with deadlines and stuff that we must do. Stopping to smell the roses or should I say cinnamon cookies, is not a bad thing. Time away with others that support our lower order needs (physiological, safety, and love/belonging) strengthens our foundation. Maslow in his theory of motivation discussed this very thing. Take the time to support these lower order needs so that the higher order needs of esteem and self actualization may be gained as well. Enter the New Year with a greater perspective, refreshed, and energized. 

As we prepare to say good bye to this past year, we need to ensure we have not forgotten the lessons learned and successes that blessed us. May your holiday be filled with family, friends, and loved ones. We at McPherson|Berry wanted to provide you a gift to use for the next year. Here is a wish on us…

What are some of your holiday wishes - we invite you to share your comments with us.

Happy Holidays.

Is the Pay Equal?

The Equal Pay Act of 1963 was established to stop wage disparity based on sex. It is now 2010 and there is still a gap in pay. A senate vote failed on November 17, 2010 to approve the amendment to the act called the Paycheck Fairness Act. In a press release last week, Secretary of Labor Hilda Solis issued a statement discussing her disappointment in the act not passing. This act would have closed loopholes and enforced equal pay. She went so far as to describe the gaps that still exist: for every dollar men earned women earned $.77, women of color earn $.69, and Latinas make just $.60. One reason for the act failing in the Senate is because there is a question about why the gap still exists. Is it because there is an education or experience gap? I don’t believe this is the last we have heard on this issue.

I appreciate your comments and would love to hear from you.

We wish you and your family a wonderful Thanksgiving. 

Performance Checkup: What’s in your box of chocolate?

There is a big thrust to be healthy and go green. Have you applied the green initiative to your career? We should be as diligent about our career health as the focus we have on our physical health. Maintaining your position or gaining a new one has become challenging and complicated. As the companies and organizations push doing more with less, the employees have to be creative, responsive and more productive. With those criteria, it is easy to get lost in the process. As employees, we are ultimately responsible for our career just like our personal health. So where are you right now?

Check your Career Pulse

At the beginning of the year, you usually complete an individual development plan (IDP) and make your performance commitments for the year. However, we forget to check our progress along the way. Personal development often times becomes secondary or forgotten until review time. Regularly check your pulse by taking the time to review what you have committed. Peak performance is indicated by your ability to handle daily demands while increasing your skills and stretching beyond your normal pace. The best employees are key contributors who value and seek growth. Balancing your development against performance is a way to maintain a healthy career. It is important for organizations to see there is a balance between the two.

Exercise for Growth

Exercise is a way to build muscle. Career advancement can be considered in the same way. Having a schedule to build new skills regularly increases your chances to catapult your advancement opportunities. Add skill development opportunities to your calendar to increase your focus and build a routine. Practice increases the chances for this behavior to become a habit. It is also a good idea to have an accountability partner. Whether you hire a coach or enlist the assistance of a co-worker, having someone to help gauge your progress can be helpful. As Forest Grump was told, “You're gonna have to figure that out for yourself. Life is like a box of chocolates, Forrest. You never know what you're gonna get.” Keep your career in shape so that you can adjust and excel.