Making the cut

When it comes to reducing benefits, consider employee morale and legal concerns
By Nancy Shapiro and Darryl Hiscocks
|Canadian HR Reporter|Last Updated: 04/01/2016

There is no question employee benefits can be a significant expense item on an employer’s income statement. Reductions in employee benefits are, therefore, often considered as a possible source of cost savings. 

But reducing anything that’s given to an employee is not likely to be received in a positive manner. As a result, a benefit reduction must first be carefully considered and then implemented with a “damage control” strategy in mind. It is rare for employees to challenge changes made to benefits by their employers if employers incorporate three basic pillars when it comes to changing benefits.

• Make the changes companywide.