Employee Benefits Communication Plan


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Employee Benefits Communication Plan

  1. 1. 3/14/2009Consolidated Electrical(ConsoE)Benefits Communication Plan Prepared by, Jennifer Jones, Simone Bloomer Rogers, Danielle Skloven, and Lin ZhaoDavison
  2. 2. Prepared by, Jennifer Jones, Simone Bloomer Rogers, Danielle Skloven, Lin ZhaoDavisonConsolidated Electrical (ConsoE)Benefits CommunicationBackgroundConsoE recently acquired a new company, Expeer. Expeers benefits package has traditionally been morecomprehensive than that of ConsoE. It is necessary to devise a tactical plan to communicate the benefitsstructure at ConsoE to incoming (former Expeer) employees.Following is a strategic action plan to engage key stakeholders at the organization to assist with thebenefits communications in a timely, clearly articulate manner.Stakeholders• Human Resources and Training and Development departments• Former Expeer managers, supervisors, and front line staff• ConsoE senior and executive management• Marketing Department (to produce HR/Benefits print materials)Key Objectives• To attain new employees’ understanding of ConsoE’s benefits provisions• To maximize employees’ savings through the appropriate healthcare plan selection• To increase employees’ return on investment through retirement savings plan (s)• To conduct post-mortem evaluation of benefits communications plan using employees’ feedback• To develop improved benefits communications plan using feedback (“Key Lessons Learned”) from post-mortem evaluation and future implementationBenefits HighlightsConsoE benefits to be communicated by human resources and employee relations personnel throughprint, online and electronic media to all new employees.Highlights of the benefits provisions are outlined according to four major components: 1!
  3. 3. Prepared by, Jennifer Jones, Simone Bloomer Rogers, Danielle Skloven, Lin Zhao 1. Cash Balance Pension Plan 2. 401k Retirement Savings Plan 3. Employee Stock Option Plan (ESOP) 4. Flexible Health Benefits PlanFor more information, specific issues, circumstances and general inquiries, Harry Dramon, VicePresident, Human Resources, direct at: (###) ###-####.1. Cash Balance Pension PlanConsoE offers flexible investment options in a guaranteed annuity account. The cash balance pensionplan accrues monthly interest, automatically credited by the company, and guaranteed not to decrease.Credit amounts vary according to employee age, years of service, and pay.Main message: "Retirement Savings – Guaranteed."• Vesting is immediate• The cash balance benefits are inheritable (unlike traditional annuities)• Monthly interest credited automatically (value will never decrease) Questions to Anticipate:• What does "inheritable" mean? If the employee passes away, the account will automatically transfer over to the designated beneficiary (spouse, family member).• What makes the pension plan different from the 401K? Unlike the 401K, a pension plan offers after-tax savings in a cash-based account guaranteed by the company with interest rates that never decrease. The employee has flexible disbursement options that are not taxed, as they would be with traditional 401K plan withdrawals.2. 401K PlanConsolidated Electrical offers immediate access to its 401k retirement to the incoming, former Expeeremployees. Expeer funds will automatically be rolled into the ConsoE 401k plan within 60 days. LikeExpeer’s 401k plan, ConsoE’s 401k savings are also transferable, should an employee leave the company.Main Message: "Choices."• New fund administrator: Charles Schwab (formerly Fidelity) Schwab has a long history of quality customer service, like Fidelity, and will work with each employee to ensure a smooth transition.• Employees have access to over 250 funds 2!
  4. 4. Prepared by, Jennifer Jones, Simone Bloomer Rogers, Danielle Skloven, Lin ZhaoDavison Schwab offers a new web management system to track accounts.• Representatives are also available by phone for one-on-one counseling.Questions to Anticipate:• Can I leave my Expeer 401K with Fidelity and add my ConsoE balance to that account? All accounts must be placed in a Schwab account.• Will Expeer employees still receive yearly profit sharing? Yearly profit sharing will no longer be placed into each employees account, though the addition of a pension plan would offset the difference.3. Employee Stock Ownership Plan (ESOP)Consolidated Electronics will contribute stock to the company trust fund for the benefit of the employees.These contributions will be allocated to individual employee retirement accounts.Main message: "Ownership."• Employees are entitled to these stocks immediately.• Employees must hold the stock for three years following the purchase before they can sell it.• These stocks are non-taxable (the only time employees must pay a tax is on receiving the stocks).• If the company succeeds, everybody prospers.Questions to Anticipate:• Whats in the ESOP for me? True ownership of the company & a stake in its success• How much stock will the plan buy? How much will I get? Employees may put aside up to $300 per salary period to purchase stock.• How will the ESOP affect our other benefits? It will not affect other benefits.• Can I take money out of the plan while Im working? No. However, you may take a loan out for repayment within a prescribed amount of time.4. A Flexible Health Benefits PlanConsoE healthcare plans are tailored to the individual, couple, and family.Main message: "Custom Healthcare" 3!
  5. 5. Prepared by, Jennifer Jones, Simone Bloomer Rogers, Danielle Skloven, Lin Zhao• Part-time and full-time employees are eligible• Low out-of-pocket expenses• Company credits allocated to healthcare plans all new employees• Vision, legal, and life insurance may be added using after tax dollars• Credit-based healthcare expenses are paid by company; additional benefits (life insurance, vision, and dental) may be purchased with after tax dollarsQuestions to Anticipate:• Are my spouse and children automatically covered too? If you select the appropriate plan, many are specifically geared toward marital couples and families with children.• What if I get hurt on the job? ConsoE offers a comprehensive workers compensation and disability provision designed to protect employees should they get injured at work.Strategies & Tactics1. Strategy: Ensure supervisors and HR trainers are educated on benefits materials Tactic: Departmental small-group Q&A sessions Tactic: Provide trainers with potential questions and answers Tactic: Design & distribute training and meetings schedule Medium: Print marketing materials (Benefits Highlights), PowerPoint presentations, online/intranet, bulletin postings, face-to-face meetings2. Strategy: Educate employees on how to obtain the maximum value out of provided health benefits Tactic: Host health fairs to promote preventative care Tactic: Communicate to employees the company-sponsored healthcare support services, such as health care advocate hotline, online health record maintenance, 24-hour nurse hot line, and other preventative health and wellness programs Medium: Print marketing materials (Benefits Highlights) one-sheets, health and wellness handbook, and face-to-face meetings3. Strategy: Educate employees on long-term savings and how maximize to return on the investment 4!
  6. 6. Prepared by, Jennifer Jones, Simone Bloomer Rogers, Danielle Skloven, Lin ZhaoDavison Tactic: Develop interactive website on intranet geared toward matching employee needs with various investment options Medium: Online/intranet, Benefits department telephone hot line, in-person investment seminars4. Strategy: Ensure future access to benefits information after initial roll-out Tactic: Collect feedback on benefits communication from supervisors Tactic: Use evaluations to revise benefits communications Tactic: Maintain current contact information for HR/Benefits department Medium: Intranet, hotline, updated print materials, face-to-face meetings, supervisor assessment formsPlease see Excel worksheet for Timeline 5!