Competitive employee benefits packages are essential for attracting and retaining quality
employees, but continuing to offer them can be tough with the rising cost of health care
squeezing an already tight budget. Cutting benefits may seem like a necessary reality for
some companies, but could have serious long-term consequences.
Retaining employees throughout these rocky economic times is vital so that your
company remains competitive and positioned favorably in its industry when the
economy rebounds. One remedy could be implementing a strategic benefit plan, which
will help you find ways to contain or even cut costs while still offering competitive
What is a strategic benefit plan?
A strategic benefit plan is a three-to- five-year plan crafted by you and your Workplace
Benefits Solutions representative that outlines goals, strategies and action plans in regards
to your employee benefits program. In creating the plan, you and your broker will
strategically analyze ways to contain costs through various plan improvements. This
approach is a methodical and logical long-term approach to benefit planning, as opposed
to making decisions year to year, and will provide a thought-out road map for your future
Benefits of Implementing a Strategic Benefit Plan
At the company level, creating a strategic benefit plan will help greatly with internal
budget planning and can also be incorporated into your corporate strategic plan. This will
bring HR and employee benefits into larger strategic conversations and ensure that a
competitive benefits package continues to be available.
Employees will also see the benefit from a strategic benefit plan in many ways. First of all,
by finding ways to cut and contain costs for the company, the employee will likely reap
some of the savings as well. In addition, this type of plan will provide assurance for
employees worried about their benefits. Next to job security, employees worry most
about their benefits and compensation, namely that they could be reduced or cut at any
Studies have shown that workplace morale is strongly linked to the quality of employee
benefits, so reassuring employees that their benefits will continue is a beneficial move for
companies. The strategic benefits plan can include an employee communication initiative, which will keep employees informed and assured on the future status of their benefits.