How do changes in benefits affect employees?
Benefits matter to employees, and the kind of benefits an organization offers should be based on what is important to the employees. Employees want family-friendly benefits; it’s not just about health insurance or a 401(k) plan. So, again, benefits are critical, especially in this economy. But, what’s also important is how user-friendly the benefits process is and how many options are available. For instance, employees are very interested in work-life benefits, such as guaranteed time off, childcare assistance and retirement benefits. People want and need a ‘total’ benefits package.
If cuts have to be made, how should employers handle it?
Transparency is key, whether you’re cutting employees or the benefits package. When it comes to cutting people, be careful and consider all other options first. People are your single most important asset; evaluate deeply before you act on cuts. Often, it can seem like a good quick fix to a bottom line, but what usually happens in the long run is you end up hiring those same positions back. It actually costs more money to hire positions back than the savings you realized on the front end when you eliminated those positions.
Still, sometimes cuts are inevitable. If staffing cuts are needed, look for opportunities to offer people other positions in the organization. Make sure you have a strong performance management model in place so you can clearly show employees which cuts are being made due to the economy and which are a result of performance.
That same transparency applies to cuts to the benefits package. If you have to do it, show the pain the organization is in and why the cuts have to be made. Be clear about whether the cuts are for the short term or the long term. With any kind of cut, be supportive, be clear, be strategic and, most of all, be careful.
Why is the work-life balance so important?
In 2008, the Families and Work Institute conducted a national study on the changing work force. One of the key findings was that employees’ physical and mental health has a significant impact on the work outcomes that employers are most interested in, such as engagement, turnover, job satisfaction and productivity. The study also identified six criteria that are critical to an effective workplace, and one of those was having a good work-life balance.
Employees want to know that the organization and their supervisors care about them. Are you responsive to your employees’ personal and family issues? Do you offer flexibility? These types of things are critical to today’s employees and are key components of an effective workplace.
Karen Mathews is the director of Work Life Services/Human Resources for WellStar Health System. Reach her at (770) 792-4968 or [email protected].