Providing employee benefits to workers is a complex and very expensive undertaking made more so by more complex laws and regulations that have grown tremendously since 1974. Employee benefits are long-term commitments and liabilities. Workers come to rely on them heavily for a substantial portion of their families security now and in the future. While you can argue whether or not all this security should be tied to the employer, as long as it is and as long as employee benefits are part of the employment and compensation deal those commitment should be honored. Employer should not make “promises” they cannot or do not intend to keep. Employers should not provide plans they cannot continue to fund in good times or bad.
Over the years I often heard things like “our employees are our most important asset,” or “we cannot succeed without you,” or “we need our employees engaged,” or any number of similar expressions of commitment to the workforce. Well, if all that is true (and it really is), why do the security packages for this important asset to any organization become the first targets of cost cutters? Hey, if you don’t want to provide employee benefits to workers fine, don’t. If you need to cut a new deal, make trade offs. Better still, put a new deal in for new workers so they know upfront what to expect and count on, but don’t pull the rug out from under people who earned what they have today.
- Employee benefits are part of your compensation; if there were no benefits, your pay would be higher.
- Really, ask the retiree who worked thirty years for his pension and health benefits and then saw the benefits cut or eliminated after he retired. Hey Mr.CEO, we were only kidding about that bonus you got four years ago, we want it back.
- We are giving you a healthy living credit if you participate in our wellness programs.
- Did I forget to mention that we already built that credit into the premiums you pay so if you participate in the wellness program you are really just breaking even?
- We are converting to a cash balance pension plan because it will give you greater flexibility, it is easier to understand, you can see your account grow each year and we know you will appreciate it more
- I may be able to see my account grow, but keep it invisible and at the same level it was before. I understand the old plan as much as I need too – I get a monthly income for life and I do appreciate it.
- We are converting to a high deductible, consumer driven health plan with an HSA so you can become a better health care consumer.
- Here are a few bucks toward the possible $4,000 out-of-pocket costs your family will have before our new plan pays a dime. Alternatively, you can put your own money in the plan and use it today or tomorrow or when you retire. It’s all really quite simple, we are saving a bundle cutting your benefits
- Effective next January we are dropping health plan A, getting a new carrier for Plan B and eliminating the plan where you can go to any doctor you like.
- I have no idea what I am doing, but a consultant convinced me all these changes would save the company money…at least this year. Sorry for disrupting health care for you and your family, your wife will understand.
- Successful Companies Gain Profits by Adding Employee Benefits (walletpop.com)
- Top 10 Reasons for Job Dissatisfaction (and How to Combat Them) (brighthub.com)