---

Guest post by: Claudio Cipriani Become an Author

Tweet

---

---

As 2009 kicks off, we find ourselves waiting and watching as the face of the bear market begins to show itself. With politician speaking of growing deficit spending, we have to look inwardly to our own cost cutting to be able to weather the storm to come. One of the costs that many businesses incur is the cost of attracting and retaining quality staff - through a health benefits plan. This can be a huge expense for some companies, and is often one of the first to be amended - When amending the benefit plan, be careful. Changes may have to be approved my the employee class first otherwise you may find yourself in the middle of a labour liability case or worse, a human rights case!

When trying to cut costs an employee benefits administrator has to tread carefully - changes to the detriment of one employee class can trigger many kinds of legal proceedings especially if the original terms of employment states that the employee gets benefits as stipulated in the employee handbook.

First - you should have an employee handbook. This outlines the duties and responsibilities of the employer and employee. Let’s not forget, a person is selling their time to you in exchange for money and benefits to them - both should be outlined clearly and consensus should be reached.

Second - typical businesses will have several classes of employee - an owner class, a management class and a general employee class (NOTE: this will vary in each business). This is where things get interesting - once you establish a benefit for employees, changes are not easily made. You have to be aware that any changes that you make to the policy could result in consequences for you. For example:
if you reduce benefits for a particular class of employee, it could be considered
discriminatory and could challenge labour and human rights laws

if you introduce a benefit that may be ideal for the employees, but some refuse to pay on the
grounds that they never agreed to the benefit (such as adding Long Term Disability - where
the employees pay the premium) - you could be forced to pay the premiums

Whatever your situation, you should try to remember what a benefit program is doing for your business - it is a tool that you are using to attract and retain the best. It is your investment in human capital.

Some business owners consider it a gift and a privilege to their employees - an added cost. Yes it is, but is it also a tool in your pocket over your competition. You can give the staff something extra that will make them work smarter and harder for you. Use it wisely.

Related Articles

  Health Benefits for Dependent Children
  Sales Training Closing the Sale
  Mental Health Benefits Update
  Get Out of Your Way
  Student Health Insurance Don't Purchase From The University!
  Nine Hidden Buyer Questions
  Making Use of Quality Platform Bed Plans to Upgrade your Bedroom
  Home-based Business: Why Should You Have A Business Plan?
  Reducing Costs with Creative Small Business Medical Insurance Solutions
  Business Marketing Plan
  Sales Incentive Plans Drive Sales Behaviours
  Guaranteed Issue Life Insurance An Expensive scam?
  Expanding your franchise business
  SMEs - opportunities in Africa
  Outsourcing SEO services makes business simpler
  “Twelve Major Benefits For Being Well Organized, According To Your Strategic Thinking Business Coach”
  Goals & Plans
  Conducting Market Research
  Referral TIP
  Building an Effective Talent Management System

Related Forum Posts

Re: A good business plan
Free Business Plan Review
Re: What or Who Sparks Your Business Interest
Try wikipedia.com for more information
Entrepeneurs

Share this article. Fund someone's dream.

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Five Ways to Boost Your Email Delivery Rate

Top 12 Qualities of True Business Professionals

Easy To Earn Money with Home Based Business Ideas

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.