The Confident Retirement: Your Path to Financial Freedom by Kris Flammang, AIF® - HTML preview

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LAUREN WINANS

On-Demand HR Expertise

KRIS FLAMMANG

Your professional path doesn't look like it was a straight line. Take me through what led you to where you are now.

LAUREN WINANS

I kind of fell into human resources. I think a lot of people end up doing that. I started my career at a health insurance company and learned everything there is to know about medical insurance and claims. Then I decided to move on and jump into a different role. I ended up in an entry level benefits administration position, and I’ve been climbing the ranks since then. I’ve had pretty much every job there is to have in employee benefits.

Most recently, before I decided to do my own thing, I was in an HR leadership team reporting to a CHRO. I focused on creating the best place to work and offering the right benefits. Eventually, I got to a place where it felt like it was too much. I had been in corporate for 20 years. It's like you're on the hamster wheel.

So, I was looking for something new, a different challenge but still using my expertise. I always wanted to own my own business, so I founded Next Level Benefits. For the past two years, we've been focused on helping clients of all sizes in all industries with any HR projects they have. Basically, my model is that we're able to loan out HR professionals for short-term or long-term projects. We partner with HR teams and we help companies that don’t have them, so we do a little bit of everything. My past experience has really helped quite a bit in this process because I've really seen it all when it comes to HR.

KRIS FLAMMANG

You said you were on the hamster wheel and it got to be too much. Can you elaborate on that? What was too much?

LAUREN WINANS

It was the combination of office politics without strong leadership, which is really a recipe for disaster. In the five or six years I was at my last corporate employer, I had three different bosses and five different CEOs. The turnover was too much. It was disruptive, it made it difficult to be productive, it made it difficult to be strategic. I really enjoy building HR strategy and making investments in employees, and those two things were not part of my job description any longer, so clearly it was tactical.

It was lacking the creativity I wanted. It became too stressful. When I resigned, they asked me where I was going, and I said, “Home. I just need a break to reassess where I'm at in my career and what I want to do next.” I don't think there's anything wrong with that, and I make no apologies for it.

KRIS FLAMMANG

Let’s go back to the year you started the business. If you could go back and give yourself some advice, what would that be?

LAUREN WINANS

It took a lot for me to make the choice to take the leap. So, number one, I would congratulate myself for making that decision. I would also remind myself that there was nothing to fear, nothing to worry about, and that doing something that you feel passionate about is almost always going to work out.

If I knew then what I know now, I would not have lost any sleep. I would not have stressed over how the website looks and all the different components that go into creating a business. I would have just committed to it and gotten going. But in the beginning, you just don't know how it's going to pan out. I'm very thankful that we have been successful since the first month that we started.

KRIS FLAMMANG

I really like that answer. Why might a company or an HR department at a company engage your services versus going at it alone?

LAUREN WINANS

There are a lot of reasons. It could be that they just need some extra expertise in-house. They might have a fairly junior team, and have a really complex project in front of them, so they need that deeper expertise. We've also helped when there have been open roles that are taking a long time to fill, or perhaps someone is out on an extended leave of absence, maybe a maternity or a paternity leave. We step in and help to lead the team in the interim. That interim leadership is very important; it keeps the wheels on the bus.

Aside from those two situations, we also come in just to be extra bandwidth. Extra hands to get through tasks and projects. Throughout the pandemic, HR has been such a critical piece of every business's strategic plan around how to manage COVID. Bandwidth is coming at a premium these days, and it's really hard to combat burnout. Using our services - whether it be for four weeks, six weeks, four months, six months, a year, two years – helps your team, and it helps you to get some expertise that you wouldn't necessarily have access to. You don't have to teach us anything because we speak the same language. We even have some clients who just mail us a laptop and say, “get to work.” There’s really a variety of reasons that our clients reach out to us and we can help them in so many different ways.

KRIS FLAMMANG

That's compelling. What are some areas of your practice that you personally get the most enjoyment out of right now?

LAUREN WINANS

My deep expertise is employee benefits. I am a benefits nerd. I know a lot about health insurance, I know more than I want to know about retirement plans, and I love it. Benefits excite me. I feel employee benefits are a special part of the employee experience, and the total rewards package that should be offered at every organization. I’m excited when we have projects that are benefits related, such as benefits assessments or total rewards assessments. I like to spend a lot of time in that space.

KRIS FLAMMANG

Do you think businesses have a big misconception about either your line of work, or whether they need to offer benefits?

LAUREN WINANS

I think there are a couple misconceptions. Some HR teams may not have benefits experts or total rewards experts in-house because they feel an HR generalist can handle everything. Not to take away from any of their talents, but there is a benefit to having someone focused on both compensation and benefits, so the entire employee experience is enriched in a way you wouldn't have with a general HR individual creating a benefits package.

Employees are looking for certain things these days, and if you want to be competitive, you have to be offering a robust benefits package and competitive compensation. Especially in the current job market and climate.

Then there are folks that are not offering benefits to their employees at all. That’s a clear miss, and it’s going to decrease the level of talent that you bring into your organization.

KRIS FLAMMANG

What would you say are the most overlooked areas or blind spots when it comes to company offerings? Maybe they don’t think it’s important, or don’t think their people care about that.

LAUREN WINANS

It feels as if mental health has been top of mind, but it hasn’t necessarily had the right focus on it when it comes to creating a benefits package. Yes, you can access mental health services through any health insurance you may be offered. But there are additional support services around meditation and mindfulness, and access to telehealth when it comes to therapy sessions, and being able to schedule and structure your day and learn more about different aspects of your health. How to effectively manage yourself and your family, and the boundaries you need to create at work. There are all these different aspects that touch on and influence our mental health and employees.

Some employers are doing this well because they recognize the value of tending to and supporting employees’ mental health, but there are just as many employers where it wasn't top of mind until the pandemic came through. We still have a few clients that have been hesitant to move forward with additional mental health benefits, because they're not sure it's going to be a good ROI. It's hard to quantify the return on investment when it comes to a lot of employee benefits, and this is one of those areas I think folks are struggling with.

For example, with mental health we're just starting to scratch the surface from an employer standpoint of how we support employees in an effective manner without overstepping our bounds. I think that is a barrier for a lot of employers. That's the thing I'm seeing most right now.

KRIS FLAMMANG

On the flip side, what retirement benefit offerings do you see getting the most traction right now? Go ahead and put on your nerd hat.

LAUREN WINANS

It's on. The retirement benefit offerings I'm seeing most commonly right now really focus on company match and financial wellness. Making sure people have access to educational opportunities to learn more about how they can manage their finances today to be successful in the future. That is a really big one.

When we talk about financial wellness or well-being, that can be offering some lunch-and-learns, or offering access to professionals to help you plan and choose investment options. It can also simply just be having access to online tools, budgeting tools, and the ability to really tackle your debt. Those sorts of things are gaining a lot of traction, and have over the last couple of years.

Another trend in benefits over the past few years is student loan assistance. A lot of the 401(k) vendors and administrators are offering these additional services because they've recognized that student loans really impact our ability to save today. There are student loan reimbursement programs and repayment offerings, and even help to consolidate and refinance those loans. Employers are also looking into that space as well. Company match, financial wellness opportunities through education, and student loan payments seem to be the top three benefits right now.

KRIS FLAMMANG

I’d like to hone in on one of those. Let’s talk about auto-enrollment and auto-escalation. For those who aren’t familiar with those, auto-enrollment means you’re automatically enrolled in your employer’s retirement plan at a certain point unless you specifically opt out, and auto-escalation means your contribution percentage goes up every year unless you changed it or turned it off. We're finding that a lot of companies are choosing not to do it. I'm curious what your take is on the reasons for that, or the psychology behind that.

LAUREN WINANS

There are two reasons. One is the noise that comes along with that. Benefits teams are part of an HR department. HR teams have enough on their plate and don't necessarily want employees coming to them to complain, to be confused about the deduction that just came out of their pay and want the money back, which they can’t have. Quite frankly, the HR teams don’t want to deal with it.

Number two is the cost associated with auto-enrollment, unless you have the dollars like a large employer does, to set aside for certain things like a safe harbor plan and that sort of thing. Budgets are tight and when you auto-enroll employees, you're putting them in the plan, and then at some point, if you have a company match, you’re going to have to do that, which will cost you more.

Then if you have part-time employees who are eligible for a 401(k) plan, that's a whole other set of the population you have to explain to, who might not necessarily understand a 401(k) the way a full-time employee does.

The whole thing can become quite a nightmare. A lot of emails, a lot of phone calls, a lot of complaints. Sometimes people leave the organization if they feel the company took money from them. Even though it's not the case, it's hard to explain that to some people. I think noise and cost are really the two reasons why you might be seeing a downward trend on that.

KRIS FLAMMANG

We’ve both seen studies that say we have a retirement crisis in America. Average 401(k) balances are relatively low. Savings are trending down and debts are trending up. Do you have any thoughts on possible solutions from a retirement benefit standpoint that might work well to help combat this?

LAUREN WINANS

Employers need to step back and assess what their philosophy is around the employee benefits. If your philosophy as an employer is to provide enrichment opportunities for your employees through your benefits program in an effort to attract and retain talent to your organization, then you really need to be focused on all areas of an employee's life. Helping them to financially prepare themselves for retirement is an employer's obligation and also a societal obligation. If we as employers are not helping employees to save and understand the value of saving properly, not overspending, and managing debt, then we're going to lose the battle. As we all age and get closer to retirement, what we're going to find is we're going to be working forever.

I think there is an opportunity for employers to assess their philosophy and then institute benefits that are going to make a difference. If you don't have the money to invest in a robust 401(k) company match, that's okay. But you should be able to offer some education and that comes at a very low cost. You can teach your employees the types of things they need to know in an effort to help them in their lives outside of work. That is really what the best employers do, and it’s one way we can combat things.

There’s a lot of concern over mounting debt. I think there's an opportunity to really assess the different structures we have in our society. Take medical debt. It can significantly accumulate for people who might have a chronic condition, or you get a surprise bill after having a procedure done. This is one of the major factors for people going into debt, even bankruptcy. I think there are opportunities for the government to step in. One of the things they're doing is working on a No Surprises Act, which is going to be focused around stopping the surprise billing that hospitals and doctors do, mainly for emergency visits.

There are opportunities for legislation that can help us as a country, as organizations, as leaders to better understand the best way to support employees in a proper way. There is also an opportunity for people to learn a little bit more about the dangers of getting into a bad financial situation. There are people who don't understand the gravity of that situation until they're in it.

KRIS FLAMMANG

Everybody likes good surprises but no one likes bad ones. Tell me about one of your most satisfying client experiences; the problems they were facing, how you helped them, and the happy story at the end.

LAUREN WINANS

The very first client I brought on two years ago is still a client, and they’re one of my favorites. They do so much for their employees, and they're constantly looking to improve. They're constantly looking to strategically enhance ways they can further support their employees. We work very closely with their HR department, particularly with the VP of total rewards. She is hyper focused on making sure the employees get exactly what they need and want out of their employment with this company. It’s a very large employer, with over 55,000 employees, but they are focused on keeping that small company feel within the organization, and they're doing a fantastic job.

We've worked on a variety of different projects for them, but I think my most satisfying was stepping in and helping them to consolidate 170 different paid-time-off, vacation, and sick plans into five plans. We were able to really streamline and enhance the number of days those employees were receiving, and in turn, help with the accounting of the time. In the end, the employees got more time and the organization saved some money. It took us 14 months, but it was an administrative win all the way around, and was one of my favorite projects.

KRIS FLAMMANG

I'm curious, what’s your first memory of money?

LAUREN WINANS

I come from a family that is very motivated and that strives for perfection. My mom was an executive in the telecommunications industry. My dad was a senior leader in the federal government, within the Social Security administration. Watching both of them, I saw how hard they worked for the family, and how hard it was to juggle a family and a job that's fast paced.

The lesson they always taught me was that we work hard not only to instill great values in our children, but also to earn money for us to do amazing things, to have amazing experiences. I was around seven when that clicked for me. “We don't just own this big house. You had to work hard for this house. You have to work hard to send us to private school, and you have to work hard to take us on vacation.” It was around that timeframe that I realized that money is a tool to have wonderful experiences with the people you love. I've had a good relationship with money because I see the greater value in it. I'm not necessarily focused on hoarding it or spending it, it's more of, “How can I use my money to increase my quality of life here on earth, and how can I create experiences for my family and friends?”

KRIS FLAMMANG

We share something there. I'm an experience guy myself. What would you say is your biggest life accomplishment so far, either personally or professionally?

LAUREN WINANS

I'm going to stick with professionally because I feel I have many personal accomplishments that I'm proud of and I will just bore you. I think my biggest professional accomplishment is going out on my own. Taking that leap and becoming an entrepreneur, and not being hindered by any feedback that wasn't positive. There were some folks who were concerned that this wasn't the right choice, but I've been able to prove them wrong. And now that I have a taste for doing my own thing, going back to a corporate environment is last on my list. This is something I love to do. This is a way for me to be creative and I've enjoyed every minute of it.

KRIS FLAMMANG

I can concur on that. Independence definitely has its advantages. Outside of business, is there something that you are really passionate about personally?

LAUREN WINANS

I'm really passionate about patient advocacy. I'll tell you what it is and why I am passionate about it. You go to the doctor's office. You have a condition. You're not really sure what it is, you're going on this journey of figuring out how to help yourself feel better. Patient advocacy is really knowing when to ask the right questions and knowing when to trust the advice of the doctors and/or specialists you see.

My son has a medical condition that required me to step in to be not only a parent advocate, but a patient advocate. What I witnessed in the healthcare system is that it's very hard to do. It is very hard to advocate for yourself when you are sitting in a room with a very well-educated professional who's telling you what you should do. It's hard for folks who are in that situation to either push back or ask questions or try to figure out more. Or trusting your gut when you’re being told there’s nothing wrong but you know deep down that something isn’t right. It's being able to collaborate with medical professionals in a way that helps you and does not turn you into just another number, just another of the many people they’ve seen that day.

I'm very passionate about patient advocacy, mainly for children who are patients and have conditions. But generally speaking, I feel it is very important for folks to be heard when they are seeking care, and for them to be able to ask questions and get educated and get information from their doctors, and feel confident in their treatment plans and their care.

I do some volunteer work with organizations focused on patient advocacy. I work closely with an organization that specifically handles the condition my son has. So, this is very close to my heart. Not only because of my own personal situation with my child, but also because being an employee benefits professional I have worked with many people who have been in situations such as being told to get an MRI although they didn’t need it, or were misdiagnosed and had to get three different diagnostic tests before they were told what their diagnosis really was.

It all comes down to a fear of not wanting to ask the question when you're in front of the doctor, or not knowing what to ask, when to ask, how to ask. I think there's an opportunity to continue to educate folks on that because they should be a champion in their own healthcare.

You need to be an active participant in your own health. That also has to take place when you're in the doctor's office. You can't just rely on whomever seeing. You need to understand the why behind the things that they're telling you to do.

KRIS FLAMMANG

In your industry and ours, things are constantly changing. Rules change, regulations change. “You can’t do this, you can’t do that. That was a good idea five years ago, now it's not.” How do you stay up to speed on everything that's going on and changing in your industry?

LAUREN WINANS

I rely on a lot of national publications. I also have some employment law partners that provide updates to me regularly. SHRM, the Society for Human Resource Management, is one of my go-to sources for all things legislative, as things come out for employment, and benefits, compensation, all of that.

But it is challenging to keep up with, especially when we work with national clients who are dispersed across the country. There are all these different state laws and locality changes and requirements. It is all quite hard to keep track of. But I will say, when you're a benefits nerd like me, it's very easy to consume a lot of updated information. So, I get regular email updates and I have meetings with folks that keep me up to speed. It's probably the best part of my job, quite frankly. I love to read into all of that stuff. I love to read pending legislation. I'm weird like that.

KRIS FLAMMANG

What do you think is your biggest opportunity?

LAUREN WINANS

I've decided that I am going to come a little bit more into my own, and try my best to impart my experience and my expertise in any way, shape or form I can. I am really trying to grow myself as a thought leader in the HR space. So, talking to you, and getting interviewed by others for articles and podcasts has been really exciting for me. I get excited when I have the opportunity to share my knowledge on different platforms. That's probably the most exciting thing that's going on right now.

KRIS FLAMMANG

Given all your success, what do you think is your biggest challenge going forward?

LAUREN WINANS

Setting boundaries and not biting off more than I can chew. I think people who are leaders, entrepreneurs, are almost too motivated in some cases and try to take on too much. I don't want that to come at the sacrifice of the quality of my work and the quality of what my conversations can be and what my relationships can be like. I think the challenge for me is going to be over time, making sure I'm choosing the right projects, and I'm choosing the right ways to spend my time. I have a tendency to take on too much. I need to relax a little bit and realize there aren’t enough hours in the day.

KRIS FLAMMANG

There never is. Do you see the impact either for your clients or yourself of commoditization? People can go on Google and do a search and get an opinion that can be automated. Do you see people going that route with your clients or in your industry?

LAUREN WINANS

That's a really good question, one I haven't thought of before quite frankly. I know I’ve already brought up COVID several times in this conversation, but I think it’s relevant to answer this question. The pandemic really halted a lot of strategic work in a lot of different ways, and HR is no exception. The pandemic highlighted the fact that there is little investment in a lot of HR teams and HR systems and HR technology. It's now more on the forefront, and I think our clients are now focused on reimagining their workforces and their workplaces. Once they can get over that hump, I think they're going to be laser focused on technology enhancements, ways they can incorporate A.I. into their processes, and how they can simplify a lot of the tasks done within their organization.

I absolutely think the appetite is there. The pandemic delayed it a bit, but I think within the next two to three years, a lot more employers will be more focused on ways they can improve process through technology.

KRIS FLAMMANG

It’s going to be interesting to see because a lot of those things that get automated, whether it's an HR department or pension calculations or 401(k) health or webinars, are getting a low involvement. That could be because they're just new. But as they become more widely available, will that continue? If that’s the case, what tactics might have to be employed to try to increase that? Because you and I both know as humans, change is hard, it’s easier to just sit where you are and not have to do anything.

LAUREN WINANS

Communication is one of those things that HR teams don't always do that well. I think bringing in communication experts and change management experts when you're incorporating changes like that into either a benefits plan or an HR process, or even just an organizational change, make the adoption process so much better.

The adoption rates are higher when you can actively communicate what has changed and why we are changing it. Bringing folks along with you as the change is happening helps. Because as you said, a lot of employers just put something in place but they don't actively communicate it and no one knows about it. That's why the adoption rate is terrible. But if you take the right approach around communication and change management, you can overcome those hurdles.

KRIS FLAMMANG

That's well said. Thank you for sharing your insights.