Communicating Negative Employee Benefit Changes The Right Way

employee benefitThe country’s unstable economic landscape has caused problems for the labor sector. Aside from the possibility of unemployment, another sad reality that workers have to deal with is funding their own healthcare and retirement as employers make changes to their existing benefits plan.

No one likes to be the bearer of bad news. It is the job, however, of the Human Resources department to inform their employees about the changes to their benefits policy. Considering that employees will take the news badly, the HR should see to it that everybody understands the company’s reasons for implementing such changes.

Below are some tips on how it should be done.

Switching Perspectives

One way to successfully communicate changes is to switch perspectives. Stepping into the employees’ shoes will provide insights on how they use and value their benefits. This makes it easier to communicate the changes in a way that can be appreciated by the employees.

Benefits Planning as an On-going Process

Communication should be a continuous effort between the company and its employees. Continuously educating employees about the impact of the changes would allow them to understand how to better manage their benefits.

Companies could also seek the services of benefit planning firms, like Humphrey & Pace Benefit Planning Inc. for insights on how companies could manage their benefits plan efficiently.

Simplifying the Use of Benefits

Similar to the case of shoppers and credit cards, employees find it easier to use their benefits when they don’t see money leaving their wallets. For this reason, setting up auto-escalation and auto-enrollment would make it easier to save for their retirement as they won’t be directly parting with their money.

HR and employees should work together, not against each other, when it comes to the issue of changing employee benefits. It just takes some perspective from both sides to understand what the changes mean to their future.