In an attempt to avoid layoffs, we're going to cut some benefits. We're cutting vacation time by two to three days per employee, depending on their time with the company, and we're changing the insurance policy. How can I sell this to the employees in a way that they will understand? We would have to lay off 60 people if we didn't make these cuts.

likefunny
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Cutting paid time off to "save money" is absurd. We are paid for 52 weeks a year, and that doesn't change just because we take vacations. And cutting benefits may save six figures a year on premiums -- and if six figures is going to kill your company, then the company has bigger issues than their vacation policy and benefits.

The truth is that your leadership wants to lay people off so that their pay and bonuses and stock prices stay high. Very, very few companies are truly facing financial hardship when they do mass layoffs. It's almost always all about executive pay going down.

likehelpfulsmart

As someone who recently went through a lay off then three months later closed the doors, I feel for you completely. Are you in a state with programs that can help supplement the pay of the employees and just reduce their hours? In Ohio, we have a program where employers can take a 40 hour work week and make it 35 hours. Unemployment then picks up the extra hours and pays the employee for their lost wages up to x amount. This saves the benefit issue as well as keeps your employees happier.

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I suggest your company do a complete analysis of measures that would truly save you money and reducing employees vacation is not one of them.

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Yikes.. that’s a really tough one. As someone managing benefits I know how pissed people get about renewal increases, so I know how mad they’ll be about reductions.

My suggestion is to be very up front and focus on the fact that it’s to help avoid layoffs. If they do layoffs in the future despite these changes - it will also look bad on you/the company; so just food for thought there.

But I would email folks of the changes, focus on the “why” and how you want to keep folks employer. Outline impacts, how the decision was made and why now? Beyond that I would do a call to cover all the changes, and then how a couple “office hours” or q&a’s to help management the changes.

It’s going to suck either way - unfortunately. But it’s better to face cuts and keep your job, than to loose it all. Good luck, you got this!

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