Benefit Cutting: Communicate with Employees

As companies look for ways to cut costs during this recession , sometimes they forget to include employees in the process. No one wants to see lay-offs , so it is possible that if you are open with your employees, they may be more amenable to benefit cutting, whether it is through the health care plan , or a reduction in work hours. The Human Resources Focus blog offers these suggestions to help employees deal with benefit cutting as part cost reduction measures :

1. Talk to the employees : Find out what they are willing to sacrifice. Perhaps instead of cutting health care benefits, you might find that employees are open to taking a few days of unpaid leave. Perhaps some perks, like gym membership or the annual company picnic can be foregone. You might be surprised at the different creative ways some benefits can be cut without completely and negatively impacting the employees’ lifestyles.
2. Be honest : Be open about the fact that cost cuts need to be made. Many employees are open to sacrifice if it means they can save jobs. Show the employees how much you need to reduce costs by, and ask for their help. Also, it is important that management sacrifice as well. Show your employees what you are doing to help the situation, and that you are all in it together.
3. Realize that questions will arise : Answer questions employees have. If you don’t know the answer, find it and report back. During this time, everyone has questions about what will happen next, and whether their jobs and benefits will be safe.

If you look for creative ways to cut costs, and find out what your employees are willing to sacrifice, you will be more likely to successfully achieve your goals without a huge loss of morale. And, you may even be able to save the health care plan to some extent.

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