FEI Weekly

November 22, 2019

Where AI Will Hit Hard, Employers Will Pay More for Health Care and Keep It in the Family

Robots Will Take No Prisoners

Brookings Institution

Artificial intelligence is coming for America's high-paid professions as it creates winners and losers across the labor market like never before. White-collar jobs and better-educated occupations along with production workers are among the most susceptible to AI's spread into the economy. Business, finance and technology will be more exposed. Among the most AI-exposed large metro areas are other high-tech centers in San Jose, Calif.; and Salt Lake City and Ogden, Utah.

Twitter CFO “Likes” Disclosure

Wall Street Journal

Chief Financial Officer Ned Segal says the company’s philosophy on disclosing financial results and performance metrics leans on transparency and clarity. For example, Segal says that the social media company’s decision to focus more on daily users instead of monthly users was “because it was how everybody else talked about their business” and that the company is mindful about how certain guidance on financial results can hinder its ability to react to the market and distract from long-term strategic objectives.

We(Don’t)Work

CNN

WeWork said Thursday it is laying off about 2,400 employees globally as part of a broader effort to cut costs and find a viable path forward after a disastrous IPO attempt. The layoffs have so far impacted departments across the company, including WeWork's human resources, growth, and corporate technology departments. This total doesn't include the roughly 1,000 cleaners and building maintenance staffers who were told their jobs will be outsourced.

Employers and Families See Health Care Premium Growth Rise Again

Commonwealth Fund

Following a slowdown between 2012 and 2016, average annual growth in employer health care premiums (including contributions from both employers and employees) rose at a faster pace between 2016 and 2018, rising by 4.9 percent for single plans and 5.1 percent for family plans. Middle-income workers spent an average 6.8 percent of income on employer premium contributions in 2018; per-person deductibles across single and family plans amounted to 4.7 percent of median income.

Keeping It In The Family

Forbes

While more than 30% of all family-owned businesses survive into the second generation, only 12% will still be viable into the third. To keep a family business viable leaders need to ensure different generations need to have an understanding of the complete business history is critical. Also, documenting and discussing an eventual transition, and any documents should be shared with outside advisors who can vouch for the family’s wishes.