Effectively Communicating Benefit Value to Keep Unions at Bay
North Carolina has long been an area where unions treaded lightly due to the state’s right-to-work laws – but that may soon be a thing of the past. A bill that is making its way through Congress, entitled the Employee Free Choice Act (EFCA), is intended to enhance union-organizing efforts by eliminating the current secret ballot elections that have kept the unions from infiltrating the right-to-work market. While federal lawmakers on both sides of the issue continue to debate, several employer groups nationwide are already making preparations for the passage of the Act. With the likelihood that the EFCA bill (or at least a modified version of it) will be passed within the year, several North Carolina employers are developing strategic action plans in an effort to keep the unions at bay – and one of the key components of many of these plans is effective benefit plan communication.
Unions generally thrive in situations where there is a significant amount of employee discontent. However, open dialogue and effective communication with your employees, especially in regard to true benefit and compensation value, can go a long way toward maintaining a satisfied workforce and avoiding union interaction. Here are some steps employers can take to keep their workplace union-free through strategic communication practices:
Educate Employees on Compensation and Benefits
One common area of employee dissatisfaction is the complexity of a company’s benefit plan. Most high-performing employers continually communicate benefit plan details to their employees through benefit manuals, educational pieces, and hidden paycheck statements that offer workers a complete look at the overall value of their benefits in relation to their total compensation package.
Survey Employees and Gather Feedback
There are several factors, or occupational magnets, that keep employees at their current job – earnings, rewards, career, association, etc. Gauging employee attitudes and understanding which of these factors are valued most by your employees is vital to addressing the needs and concerns of your workforce. Annual or semi-annual surveys are recommended in order to stay on top of issues that can affect employee satisfaction, from benefit administration and supervisor interaction to work environment and cleanliness of bathrooms.
Develop a Proactive Communications Strategy
Employers should anticipate employee questions in regard to potential issues that can invite unionization. Schedule meetings and targeted communications to address issues such as reasons for benefit cost increases or budget cuts. Tools such as company newsletters or corporate websites are often used to educate employees on important issues regarding benefit plan changes and enhancements that increase the perceived plan value.
Keeping employees satisfied requires a great deal of communication – especially as it relates to a company’s benefit plan. Such measures can also result in increased plan participation by engaging the employees to protect something they value (and subsequently control claims costs by engaging them to reduce their risk factors). But if employers wish to be proactive in the wake of EFCA regulation, they should start preparing now before the unions come knocking.
For more information on this topic, please click on the links below:
The EFCA and Its Impact on Your Business
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Important Notice: Hill, Chesson & Woody does not engage in the practice of law, accounting, or medicine. Therefore, the contents of this communication should not be regarded as a substitute for legal, tax, or medical advice.
May 22, 2009
Hill, Chesson & Woody strives to keep our clients' group decision makers abreast of trends influencing the employee benefits market. Look for Eyes on Benefits to bring you news and information affecting you and your employees.
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