Offering your staff the most competitive benefits package is a great goal. It will make you feel like you’re truly benefiting your employees. Plus, it is a great way to find some of the best talent out there. What happens, though, if you need to make changes to your benefits package? Is this even legal?
The Rules of Benefit Adjustments: 3 Steps to Take before Making the Change
According to Canadian law, once an insurance plan is up for renewal an employer can make changes. These changes can include ones that cost the employees more money to buy into or disbanding coverage completely.
There are some limitations, though. An employer cannot discriminate against any of their employees. If changes are to be made, they need to be made to all benefits plans, or by employee class. And, the employer can’t make drastic changes either. General Motors, for instance, was found guilty of breach of contract when they reduced their pensioners’ life insurance benefits from $100,000 to $20,000.
When most employers decide to make plan adjustments, the news isn’t always welcome by the employees. To avoid any resentment, follow these three steps.
1. Keep Communication Open
As with anything, good communication is key. By staying open and honest with your employees, they are less likely to feel like you’re trying to do something adverse behind their back.
2. Show Them the Data
When people see the proof, they tend to get onboard more easily. Present your employees with data that shows how this new plan will save the company money or prove more beneficial to them. Data can also help them choose the best package for their needs from the available options. The more data there is, the less confusion there will be.
A great example of this was a large company in Quebec which was facing an annual 8 percent rise in premiums. Showing their employees and the union the data as well as their options helped save both the company and the employees money.
3. Thoroughly Explain the Change
Employers can only make minimal changes without their employees consent when it comes to various forms of compensations, like benefits packages. Therefore, to ensure no trust is lost it is vital that you thoroughly explain the changes you need to make.
This is where Benecaid can help. Our Advisors can create management plans that will help you with employee communications, including webinars and support materials. The more information your employees have, the more likely they are to thoroughly understand why changes need to be made.
Always Ensure Your Employees You Have Their Best Interests At Heart
One of the best ways to attract valuable employees is to offer competitive benefits packages. However, it is important that you always evaluate the affordability of your current plan and make changes as necessary. Such changes aren’t always welcome by employees, but if you openly communicate with them and assure them that you have their best interests at heart, they will most likely be on board with your plans.