Human Resources

Article Autumn Hines

Renewal season for HR benefits is a critical time for businesses across both the private and public sectors. It’s more than just an administrative process—it’s a strategic opportunity to align employee benefits with your organization’s financial goals while meeting the needs of your workforce. 

This guide offers practical tips and strategies to help you maximize your HR benefit renewals, ensuring that you secure a plan that delivers value, cost savings, and employee satisfaction. 

Medical Insurance: The Big Cost Driver

Medical insurance often represents the largest expense in a company’s benefits package and is a top concern for employees. It also presents a key opportunity for cost savings. Here’s what you need to know: 

The landscape for company-sponsored medical insurance is evolving rapidly. Since the Affordable Care Act (ACA) was enacted in 2016, the government has been centralizing payment for benefits and pooling risk in larger groups through the public insurance marketplace. This shift is changing how insurance companies operate, leading some—like Humana—to exit the employer-sponsored insurance market entirely. 

Fewer insurance carriers mean small and medium-sized businesses often face limited options, making it harder to negotiate favorable pricing—especially after a high-claims year. Insurance companies are sensitive to risk, particularly with smaller groups where one or two employees can account for 80-90% of claims costs. One large claim can significantly impact pricing, with companies sometimes facing premium increases of 50% or more. 

Cost-Containment Strategies

Here’s what you can do to better manage these rising costs: 

  1. Get multiple quotes annually. Even if your broker is hesitant, shopping around every year is essential. Explore options not just with insurance companies (carriers) but also with plan designs. Never settle for the first quote you receive—it’s often not the best. 
  1. Expect your broker to negotiate. Your broker should be leveraging claims data and membership information to negotiate lower renewal costs, especially if high-claims conditions aren’t likely to continue into the next year. 
  1. Review your plan designs and claims utilization. How are your employees using your current plans? By adjusting plan designs, you might be able to reallocate premium dollars, offering a better package without increasing costs. 
  1. Consider joining association-sponsored plans. Local chambers of commerce or trade associations may offer negotiated pricing for their members. Many are easy to join with low dues, though they may have size limits—for example, some Kentucky Chamber plans are only available to companies with fewer than 50 employees. 
  1. Explore self-funding options. Though it may sound intimidating, partially or fully self-funding your plan can cap your risk and allow your company to benefit if claims are lower than expected. This approach can also give you greater control over administrative costs, Rx expenses, and claims management. 
  1. Join a captive. These plans enable you to pool risk with other companies, reducing costs and eliminating the insurance company’s profit margin. Captives work well for healthier groups experiencing large price hikes or low plan utilization but are less effective for high-claims groups. 
  1. Leverage ICHRAs to direct employees to the marketplace. With legal policy changes, companies can now set up Individual Coverage Health Reimbursement Arrangements (ICHRAs) to move employees into the public insurance marketplace, pooling their risk with millions of others to lower overall rates. 

Communication Is Key 

Benefits can be confusing for employees, and it’s often challenging to get them to fully understand the value of what you’re offering. Clear and simple communication is essential, especially during open enrollment. Show employees how changes will impact them individually, and make sure they have a point of contact to ask questions throughout the year. Often, employers don’t get enough credit for the benefits they provide, so consistent communication can make a big difference. 

Big Savings with the Right Approach 

When used effectively, these strategies can result in 20%-30% cost savings without sacrificing the overall quality of benefits. If this feels overwhelming, partnering with a trusted benefits advisor can help guide you through the complexities of the renewal process, identify cost-saving opportunities, and ensure smooth communication with your broker and employees. A good advisor can truly be a game-changer! 

Take control of your renewals and start exploring the opportunities today! 

This article was written in collaboration with On Plane Consulting.

Article Dean Dorton

The U.S. Department of Labor (DOL) issued a final regulation that boosts the minimum yearly salary level for qualifying for overtime pay. This rule potentially affects executive, administrative, and professional staff, sometimes referenced as the “White Collar Overtime Exemptions.”

The Fair Labor Standards Act (FLSA) is the federal legislation that dictates minimum wage and overtime payment requirements for employees. According to the FLSA, non-exempt employees are entitled to overtime compensation at a rate of one and a half times their regular hourly wage for any hours worked beyond 40 in a single workweek. Although hourly employees typically qualify for overtime, salaried employees do not if they meet a specific salary threshold and have responsibilities like supervising other employees, using specialized skills or judgment, or participating in hiring and termination decisions.

Today, salaried employees earning below $35,568 annually are eligible for overtime pay for hours worked over 40 in a week. Effective July 1, 2024, if you have employees currently classified as exempt under FLSA guidelines and paid a salary, the minimum salary amount must be $43,888 ($844 per week). The next change will occur on January 1, 2025, raising the minimum again to $58,656 ($1,128 per week).

Next Steps

While the final ruling may still be challenged in court, employers should take the following steps to prepare:

  • Check the classifications of salaried employees to ensure compliance with the updated salary criteria to maintain their exempt status
  • Evaluate salaried employee classifications to decide if any should be reclassified as non-exempt
  • For those reclassified as non-exempt, ensure accurate recording of all hours worked
  • For reclassified non-exempt employees, review budgeting, establish hourly expectations, and update policies for overtime approval

Read the new Overtime Protections ruling here.

Need help preparing? Contact your Dean Dorton advisor for more information.

Article Dean Dorton

Dean Dorton’s annual IGNITE Summer Leadership Conference, held on July 12-14, 2023, took on a new look this year as we welcomed one of our biggest IGNITE classes to date and incorporated even more hands-on experiences. This year, Dean Dorton had the pleasure of hosting 23 students from more than 15 schools across the southeast. Students had opportunities to interact with team members, gain hands-on experience in the accounting and business consulting profession, and explore the great city of Louisville, Kentucky.

Day 1

Attendees arrived at our Louisville office bright and early Wednesday morning where they were greeted by Dean Dorton’s HR team. Students received swag bags and a tour of the office space during the Dean Dorton Services Fair. Dean Dorton associates guided the students through the office, making stops at six stations and resulting in a full loop around the office. During the combined tour and services fair, students had the opportunity to hear from a multitude of team members about all the services that Dean Dorton has to offer.

After the service fair, it was time for the IGNITE attendees to make their way downtown for a trolley tour of downtown Louisville. Once students had a chance to see the city, they had dinner at the popular barbecue joint, Doc Crow’s and networked with our welcoming associates, specialists, and supervisors.

Day 2

The second day of IGNITE was jam-packed with client visits and more meet-and-greets with team members. Attendees started their day on a bus at the Louisville office that took them downtown to the first client visit at the Galt House, the largest hotel in Kentucky.

The first Galt House hotel opened in 1835 and changed owners and buildings several times. In 1970, the Louisville Waterfront had all but been abandoned until a local developer decided to build the Galt House we know today. The first tower opened in 1972 followed by the second tower in 1984.

Today, the Galt House is an expansive convention hotel featuring four world-class restaurants, more than 1,300 rooms for guests to stay in, 53 meeting rooms, two ballrooms and exhibit halls, and more. In a tour led by chief financial officer, Josh Zik and Joshua McDaniel, accompanied by Dean Dorton’s Lance Mann, students got an inside look at how tax and audit professionals can support such a large client.

After getting their steps in at the Galt House, students made their way to Malone’s for lunch where they had the opportunity to hear from Dean Dorton’s team members who shared their expertise on the firm’s various industries.

From lunch, students headed to their second client visit of the day at Ashbourne Farms in LaGrange, Kentucky. While leading the tour, chief operating officer, Rodney Wedge shared the history of the farm and its owners, as well as the multitude of ways that Dean Dorton supports the company’s goals.

Ashbourne Farms is the agricultural legacy of W.L. Lyons Brown and Sally [Shallenberger] Brown. From meager beginnings, the couple built the farm from the ground up. Their love for agriculture, nature, and conservation is evident throughout the property.

These values passed through generations to the property’s current owners, Austin Musselman and his wife, Janie. The duo renovated the show barn, added equestrian and event facilities, and have plans to bring back Ashbourne Inn. Austin and his wife are visionaries, continually seeking to honor Austin’s family’s legacy, and are always looking toward the next thing. Dean Dorton plays a crucial role in supporting that mission.

Following the tour, students sat down for a roundtable discussion led by Karen Davis and Amy Gartner, two Dean Dorton team members who work closely with Ashbourne Farms. They shared the importance of building close working relationships with clients to better understand their vision and to help them reach their goals.

The group ended their day with a pizza party featuring a local favorite, Parlour Pizza, and a photo booth at the hotel.

Day 3

Students spent their final day at IGNITE at the Dean Dorton office where they attended the Own Your Future fair. Here, students rotated around the office to attend different sessions which included:

  • Resume-Building Workshop
  • Personal Improvement
  • CPA Exam Tips & Tricks
  • Time Management Hacks
  • Dean Dorton Opportunities

After the Own Your Future Fair, attendees had another chance to network with Dean Dorton’s team members at Lunch With Managers.

Before the closing remarks, Dean Dorton’s CEO, David Bundy announced the highly anticipated results of the LinkedIn contest. Students were challenged to post about their IGNITE experience and what they learned about Dean Dorton on LinkedIn. To qualify, they had to tag the firm and use the three IGNITE hashtags. The most creative post would win a crisp $100 bill. The human resource team had the difficult task of choosing a winner, but after careful selection, they agreed that Emmanuel Tabugbo’s post had gone above and beyond.

The IGNITE experience wrapped up with a question-and-answer session led by David Bundy. He answered questions about the CPA exam, Dean Dorton’s culture, his career path, and how he became a CEO. Finally, in the closing ceremony, attendees received custom trophies to commemorate the experience.

This year’s IGNITE Summer Leadership Conference was one for the books. Dean Dorton hosted one of its biggest IGNITE classes and found ways to give students a hands-on, interactive experience at every turn.

If you’re interested in a career in the business consulting space, contact us today to learn more about upcoming opportunities for students.

Article Dean Dorton

People always said Leadership Lexington would change your life, but before participating in the program, I expected that to be an over-exaggeration. I should have believed them because Leadership Lexington has been a life-changing program.

The Leadership Lexington Class of 2019 gathered monthly to learn and discuss various themes, such as public safety, education, government, nonprofits, equine, and the arts. Each meeting provided a look into an industry or sector that was outside of my daily life as an accountant and provided me the chance to learn more about the thriving city of Lexington.

Although I loved learning more about my city of residence, the best part of Leadership Lexington was developing friendships with some very impressive people in my class and other Leadership Lexington alumni. Each of my classmates, with diverse backgrounds and perspectives, contributed to the monthly class sessions openly and honestly, providing a deep perspective for some of the most difficult of topics. Most importantly, these people challenged me to think bigger and understand more deeply.

Each Leadership Lexington class divides into small groups to focus on a community enhancement project. My project, #LEXGETFITWeek, is coming to culmination June 1-8, in and around Lexington. Lexington has all sorts of “weeks” including pizza, beer, and burger week, but knowing that Kentucky ranks as one of the least healthy states, our group was inspired to dedicate a week to moving, eating wisely, educating, and providing access to health and wellness in the Lexington community.

Fitness facilities and restaurants have provided special offers to anyone – for example, access to the YMCA is free the whole week and there are coupons to save $5 on healthy meals! Outside of these incredible offers, we developed a community events calendar highlighting classes that are free and open to the public. The calendar is jam-packed with events like meal prep courses, water aerobics, yoga, free play, walk with the mayor, and more. These events are happening all over Lexington on June 1-8 at various locations including the YMCA, Fayette County libraries, local parks, and pools. I am so proud of the group that planned this project and can’t wait to see it kick off!

https://deandorton.com/wp-content/uploads/2019/05/LexGetFitWeek-edited_870px.jpgVisit lexgetfitweek.com

Article Dean Dorton

Betty Sullivan, Daughter of television personality Ed Sullivan

There is a whole new kind of life ahead, full of experiences just waiting to happen. Some call it “retirement.” I call it bliss.

With that thought in mind, with mixed emotions we announce that Leigh McKee, Director of Tax Services, is retiring at the end of this month. Leigh has been with the firm for more than 23 years and has made an incredible impact during her time here.

Leigh has worked with clients in a wide variety of industries, including nonprofit, higher education, healthcare, natural resources, and equine. She also covers the estate/gift and succession planning, fiduciary income tax planning, and international planning areas.

Leigh earned her Bachelor of Science degree in Foreign Services from Georgetown University in Washington, D.C. She earned her Master of Arts in International Commerce and Post-Baccalaureate Work in Accounting from the University of Kentucky. She is actively involved in the community and currently serves on the Bluegrass Community Foundation’s Finance Committee.

Leigh has many great memories of Dean Dorton, but her favorite is actually a series of memories before she was even hired:

https://deandorton.com/wp-content/uploads/2019/05/Leigh-McKee-with-nieces-at-family-outing.jpg

Leigh with her nieces at a family outing

Leigh McKee, Director of Tax Services

In the interview process, I met with Doug Dean, who asked me about my strengths—and I listed a few—and my weakness, which I went on and on about. He said, “You know, you’re not supposed to list too many of those.” Then Richard Dorton: His final question in the interview was, “Do you think you’re a nice person?” I replied that I thought I was and he said, “Good; mean people don’t last here.” And of course, none of this would have been possible if Paula Hanson hadn’t taken a chance on a very nontraditional hire such as myself. Her belief was that it takes all kinds of people to make a good team and that I would add value to the Dean Dorton team. All of this gave me a glimpse of the kind of firm we are and a place to call my professional home for over 20 years.

The first thing Leigh will do upon retiring is taking a road trip through Florida in her 10-year-old red convertible. “My convertible has just 15,000 miles on it,” said Leigh, “She deserves to get out and see some new things, and so do I.”

We all extend our best wishes as Leigh takes an extended and much-deserved vacation packed with exciting adventures through Florida.

Happy retirement, Leigh!

Article Dean Dorton

Erica Horn, Associate Director of Tax Services, was one of 55 leaders selected from a large pool of applicants to be part of the 2018 Leadership Kentucky program. Leadership Kentucky, founded in 1985, joins together a selected group of leaders, with a variety of career accomplishments and volunteer activities, to gain insight into complex issues facing the state. The program provides a thought-provoking experience focusing on the attributes of leadership and what it means to be a leader.

Erica Horn, center, accepts her Leadership Kentucky graduation certificate

Once a month from June through December, for two and one-half days, Erica and her classmates visited various regions of the Commonwealth, attending programs and workshops and touring a variety of businesses to develop an enhanced view and give new meaning to the word “community,” a meaning that spans the entire state.

Through Leadership Kentucky, Erica and her classmates spent time at Berea College, Eastern Kentucky University, the Brown Theatre in Louisville, the National Quilt Museum in Paducah (a city known for its crafts and folk art, and one of nine UNESCO Creative Cities in the country), the State Penitentiary (Kentucky’s maximum security prison) in Eddyville, the University of Pikeville, Pikeville Medical Center, Keeneland’s Thoroughbred sales, Bluegrass Stockyards, the State Capitol (where she met with legislative and executive branch leaders), and several elementary and secondary school programs in Northern Kentucky.

Erica most enjoyed learning about the different communities across the Commonwealth (especially Paducah and Pikeville), becoming more aware of the amazing things done throughout the state, and getting to know her classmates. One of the most interesting things she learned was “how incredibly difficult it would be to be a correctional officer at the State Penitentiary in Eddyville.”

The program concluded with a graduation ceremony in December at the Metropolitan Club in Covington. Erica’s involvement with the community neither started nor ended in 2018, however. She recently received a Doctor of Humane Letters (Honoris Causa) from Transylvania University for her leadership and service to Central Kentucky. Having previously served eight years as Chair of the Board of Directors of GleanKY, Erica currently serves as Development Committee Chair for the organization that she co-founded. GleanKY is a nonprofit corporation that gathers and redistributes excess fresh fruits and vegetables to nourish Kentucky’s hungry.

Other Dean Dorton team members who are Leadership Kentucky alumni are Paula Hanson, Class of 1995 and long-time Leadership Kentucky board member, and Elizabeth Woodward, Class of 2014.