Preparing for the Bumpy Road

As we navigate these uncertain economic times, Group plan sponsors are no doubt facing new worries and challenges. We understand that maintaining financial stability of the employee benefits program, while supporting employees' needs is a balancing act. 

We have put together some employee benefits strategies to consider during tough economic times:

1. Review Benefits Plan Philosophy and Plan Design- The backbone of any benefits plan should be built on the plan philosophy.  It is important that plan sponsors review their “why” and what benefits are offered.

   
   

2. Evaluate Budget and Risk Tolerance – Understanding budget constraints and taking a deep dive into the current state of your program will help shed some light on what plan alternatives can be implemented as cost containment measures. At the end of the day, the programs can be customized to suit the needs of your organization’s budget, and plan design changes can be made at any time throughout the policy year.

   
   

3. Stay Informed and Adaptable-Ensure that you are aware of your insurer's contract provisions as they relate to terminations and layoffs. Understand what benefits you can and cannot extend to employees on a temporary leave of absence helps prevent issues down the road with insurers. For example, some insurers are allowing plan members who are involved in job sharing arrangements to remain on the plan even if the minimum number of hours worked falls below the usual minimum. It is also important to ensure that your internal policies are up to date.

   
   

4. Determine if there is government support available - In response to economic uncertainty triggered by U.S. tariffs, Canada’s federal government has rolled out temporary, expanded rules for Employment Insurance (EI) coverage. Under these new temporary measures, workers may qualify for EI with fewer hours, minimum hours have been capped at 630, and duration of benefits can be increased by up to 4 weeks. Here is link for your review: The Government of Canada introduces new employment insurance measures to support Canadian workers impacted by foreign tariffs - Canada.ca

   
   

5. Enhance Communication and Transparency-Maintain open communication with employees regarding any changes to the benefits plan and provide refreshers on what you have in place. Clear communication helps build trust and reduces uncertainty among employees. 

   
   

6. Seek Professional Advice - it is important to share your concerns with your consultant so that proper analysis and recommendations can be made.  In listening to employers’ challenges and feedback, we continue to develop new products and services to help support your businesses. 

   
   

7. Review your administrative practices -We understand that HR teams are running very lean these days.  In addition to this, what seem like “small” administrative errors can lead to financial liabilities to the organization.  To respond to these challenges, we now offer an outsourced administration solution that can lighten the load of general program administration while reducing the liability to the organization due to administrative oversights. Outsourced administration not only streamlines the overall management of the program, reducing the time HR spends maintaining the employee benefits program, but also ensures that sensitive details, such as salary information, remain confidential and are not seen by junior employees.

Reviewing and adjusting employee benefit plans during economic uncertainty requires a balanced approach that considers both financial constraints and employee well-being.

By implementing these strategies and maintaining open lines of communication, organizations can maintain stability, support their workforce, and emerge stronger from challenging times.  While we can’t predict the future, reviewing your plan on a regular basis can help provide peace of mind.