Coping with tough times
December 22, 2008 by Bill MeltzerPosted in: Company culture, Compensation, Employee education, Healthcare costs, In this week's e-newsletter, Latest News & Views, Leave policies, Paid time off, Prescription plans, Recognition programs, Retirement, Vendor management, Voluntary benefits
With the downturn in the economy, it seems like most organizations are shifting their focus when it comes to employee benefits and compensation. The current situation is also very stressful on benefits managers.
In times like these, it’s crucial for colleagues to share their concerns, experiences suggestions. A few weeks ago, HRBenefitsAlert.com ran a special report on calming employees’ 401(k) fears. The reader comments revealed that many benefits pros were just as afraid as employees, and people’s frustration led to some unfortunate carping back and forth between several readers.
The purpose of the comments section, apart from giving people the opportunity to react to the story, is to provide a forum for benefits managers to interact. It’s my hope that we can generate an exchange ideas that have (and have not) been working at readers’ companies during the current situation. Specifically:
- What are you doing to manage health benefits costs as budgets are either frozen or shrink?
- Have you noticed a dip in morale or productivity with all the doom-and-gloom in the news?
- How is your company trying to calm employees’ fears about salary freezes or layoffs, 401(k) losses, health cost shifting and other issues that get a lot of mainstream media focus?
- What are you saying to employees to deliver the news they need to know but also keep morale high?
Thank you in advance for your willingness to share your expertise and personal experiences. Everyone benefits in the long run.
March 5th, 2009 at 5:37 pm
For the first time this open enrollment period, we offered eligible staff a choice between renewing the HMO we already had, but with an increased co-payment and a buy-up on the premium, shared by staff and employer of $40 per month each, or a lower co-payment HMO that also has a lower premium. Three-quarters of the eligible staff chose the lower co-payment plan. Many were also able to keep the docs they already had. The day we did the insurance presentation was the same day the across-the-board pay cut of 7% was announced. That was hard, especially for the lower paid people. We don’t have employer contributions to retirement plans, just a 403(b) (the nonprofit version of a 401(k) plan), so folks just talk to the broker as needed. Brokers are generally advising to keep investing and one will be in a good position when the market turns around (if it ever does!) As for the cuts, people generally feel fortunate to have a job and would actually rather “share the pain” than have anyone lose his/her job. I think productivity has not been affected, but undeniably there is some anxiety and sadness. Several staff have taken it on themselves to try to find way to raise funds, since it’s unpredictable how the government (state and county) budgets will be in the next fiscal year. We have a very dedicated and, in many cases, long term staff.