There has been a lot of attention and political investment given to the U.S. healthcare system lately. Indeed, some careers hang in the balance of the final reform. As of this week it looks like a major overhaul of the system is nearer than ever. This raised an interesting question in my mind as it relates to the employee-employer relationship. Specifically, what happens to an employer’s relationship with employees if benefits are provided (or made substitutionally available) by the government?
Many of you will be familiar with the term job lock. Generally speaking, job lock occurs when an employee’s ability to leave their current position is limited by compensation, benefits, geography, or some other influence beyond the employee’s immediate control. Some experts believe up to a quarter of the workforce is currently stagnant due to job lock related to employer provided health insurance. If a competitive substitute is suddenly available (especially for those employees with so-called pre-existing conditions) a significant churn in employees could blindside those employers that are not currently investigating this risk.
While a major overhaul is likely a couple of years away from manifestation, the time to begin this conversation is now. It’s a strong “P” in any STEEP analysis—and especially so when filtered through the workforce plan.