A Complete Guide to Analyzing Your Marketing Efforts Using Look-Back Measurement Method

A Complete Guide to Analyzing Your Marketing Efforts Using Look-Back Measurement Method

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An article is a written composition on a particular topic, forming an independent part of a book or publication. In this article, we’ll look at how you can measure and analyze your marketing efforts.

Market analysis provides benchmarks that can help you evaluate your business’s performance. In addition, it can provide context for past mistakes and industry anomalies. The look-back measurement method requires a bit more administration than the monthly measurement period, but it can be easy and cost-effective when administered properly.

Employee Classification

Employee classification involves defining how employee engagement is structured. Staffing agencies must be sure that their clients and candidates are correctly classified to avoid hefty penalties and legal disputes. Classification decisions also impact a company’s budget, workforce planning, and recruitment strategies.

Employees are typically categorized as full-time, part-time, temporary, intern, or seasonal. However, a more important distinction is between exempt and non-exempt employees. Exempt employees are not eligible for overtime pay and typically hold administrative, professional, or executive positions that require a salary rather than an hourly wage. Non-exempt employees are eligible for overtime and often work in production or customer service jobs that require a wage.

Companies must determine whether or not a new hire can be reasonably expected to work 30 hours per week. If they cannot, the employer must offer them coverage for a time known as a stability period. The stability period must be at least six months and must match the length of the measurement testing period.

For variable-hour and seasonal employees, or those with fluctuating work hours from month to month, the lookback measurement method is a better fit. This method involves measuring an employee’s average number of FT hours over a certain period of months, known as a look-back test period. During this time, employers can determine whether or not an employee can be offered coverage and the starting date of their stability period.

Measurement Period

Many marketing strategies may look good on paper, but they will only have a long-term impact if they hit key performance indicators (KPIs) or yield high ROI or return on investment (ROMI). The KPIs to track for marketing efforts will vary depending on the specific outreach methods – for example, web advertising might focus on website traffic or conversion rates. In contrast, text messaging and direct mail will focus on response rates.

While it’s administratively difficult for employers to measure employees’ hours every month, especially if they add and drop workers monthly during a plan year, the Departments have issued a safe harbor allowing employers to use look-back measurement periods to determine an employee’s full-time status. This approach makes ACA compliance less cumbersome and easier for employers to avoid hefty fines.

For example, suppose Johnny worked 12 or more hours weekly for most of his initial measurement period. Because he worked full-time for most of the measurement period, the pizzeria can treat him as a full-time employee and avoid any ACA penalties. In contrast, if the pizzeria measured Johnny’s hours for only one month and found that he was not working enough to be considered full-time, they could face serious penalties under the ACA.

Counting Hours of Service

If you employ hourly employees to manage your marketing efforts, it is important to count the number of hours that each employee works to make accurate measurements and determinations. For purposes of the look-back measurement method, an hour of service is defined as any work for which an employee is paid or entitled to payment (including salary and approved PTO). The monthly equivalency threshold is 130 hours of service per month. This figure determines full-time status under both the look-back and monthly measurement methods.

Stability Period

The measurement and stability periods can vary in length, and the stability period may be shorter than the measurement period (with some exceptions). Some employers use 12-month measurement and stability periods to minimize recordkeeping requirements and ensure the stability period aligns with the employer’s plan year.

A common concern of large employers is how to handle employees that transfer between positions with different measurement and stability periods. To mitigate these concerns, the ACA provides that when an employee moves between positions within the same controlled group, the new position’s initial standard measurement and stability periods will begin immediately after completing the old position’s standard measurement and stability period. There are some important nuances to these transition and look-back measurement methods, so large employers must seek professional advice before changing making changes to their standard measurement and stability periods.

Suppose an employee averages 30 or more service hours in the first measurement period. In that case, they are locked into full-time status for the corresponding stability period (typically the plan year). Ongoing employees’ service hours in a subsequent stability period will only impact their full-time status if those hours cause them to move above or below the 30-hour threshold.

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