How To Cut Cost Without Compromising Employee Relations
For business owners, especially those who know the names of many of their employee’s, there’s a town meeting agenda that’s almost as repugnant as a layoff announcement: Why it has become necessary to reduce costs by trimming employee benefits. Its like cutting off someone’s main support, reducing or even eliminating employee benefits and other vital benefits threatens the business-critical relationship between the employer and the employee. The business is being put in jeopardy when core benefits that the best employee expect are being taken away from them. What’s the best approach if you are forced by financial circumstances to reduce benefits spending? The wise approach you may have asked of your employees in these hard times,would be to deeply look into your benefits program and squeeze more value out of each dollar spent. Healthcare Benefits: Healthcare benefits have been under pressure for years, costing employers more . Many smaller employers are approaching some troublesome times. Companies are maintaining health benefits, but are having trouble paying their premiums. Employers health insurance is a source of compensation, it’s a difficult thing to eliminate. Lost of employee loyalty and employee losing there health can be a negative result if employers drop financial support , which can lead to less work getting done and constant absenteeism. Business owner’s feel there is not much that they can do about rising healthcare costs, but broker consultants can try to find carriers that can save them money. Businesses need somebody who is knowledgeable and well-trained in employee healthcare benefits. Try getting a referral from a local business owner whose business is similar in size to your own and find out how they regard their broker. But finding a fiscally sustainable health plan is about more than just seeing which carrier comes in with the low bid. You have to look at plan design to motivate people to care more about there health. Maybe higher co-pays and deductibles have been keeping people from getting treatment for chronic disease, or from seeking preventative care. A good broker consultant or independent consultant work hard to find the best option for your workplace. Many insurers have resources dedicated to helping members live healthier lifestyles, including value added programs. While others may have specific financial incentives , employers should contact their insurer to find out what is available. If you are successful in reducing cost while maintaining crucial health benefits, be sure to clearly communicate this management victory to your employees. Voluntary Benefits: Employee paid benefits is now being switched around by employers to voluntary to shift the cost of premiums. Legal advice programs or long-term care insurance are being eliminated to cut administrtive cost and strenuous work load on HR management resources. A positive way to find out which benefits are the most in demand, try sending out a survey for the employee’sto complete, then analyze the reslts of the survey into your cost-sontrol program, and let your employee know how there participation made a difference.